Friday, May 23, 2025

(5) Advertising: Institutional vs Product Advertising

A special mention is warranted for a brief analysis of the perennial clash between product and institutional advertising, where the latter, undervalued, tends to lose out:
 
5. Product and Institutional Advertising
 
Companies are generally reluctant to invest in institutional advertising—promoting the company itself. They believe advertising should focus on products, which directly drive profits, while institutional ads “don’t sell anything,” or so they claim. While product advertising is indeed vital for revenue, this doesn’t mean institutional advertising should be dismissed—especially when it’s well-crafted and harmonized with product campaigns.
 
Institutional advertising conveys to potential customers an image of a strong, reputable, trustworthy, high-quality company. That image, tied to the logo, instantly transfers its values to every product whenever a customer sees the company logo alongside a product’s name or image. Thus, product and institutional advertising feed into and strengthen each other.
 
Employees, managers, and executives need to realize that, just as they wouldn’t buy a chocolate from an unknown brand when Nestlé or Lindt is available, customers will trust our products more if they recognize the company behind them through frequent, multi-channel institutional advertising.
 
It’s a widespread mistake for companies to abandon institutional advertising or limit it to a token ad (out of obligation) or a logo in a sponsored book or space. Product advertising is as essential as institutional advertising—both, of course, done well.
 
(To be continued…) 


A journey through the history of the pharmaceutical industry and one of its great laboratories that had its origins in Alfred Nobel...
“From Alfred Nobel to AstraZeneca”: https://a.co/d/9svRTuI

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