THE MESSSAGE AND PURPOSE OF CORPORATE ADVERTISING
To be truly labeled corporate the ad must deal with company’s policies, functions, facilities, objectives, ideas & standards, build favorable opinion about the company’s management, technology skill, social contributions enhance the financial structure or investment qualities of the company or promote it a good place to work.
Thus, the corporate advertising endeavors to promote activities by which oral as well as visual messages are directed towards the public on a continuous basis. The purpose is to inform & influence the public either to consume products or services or to act or be inclined favorably towards ideas, organizations or personalities featured in the campaign.
In order to produce successful image of corporate advertisements, the following are a few guiding principles:
1. Set proper objectives & strategies.
2. Define the target.
3. Select appropriate media.
4. Develop correct message.
5. Control production & budget
6. Evaluate the effects.
In today’s knowledgeable society the corporate advertisers have been quick to learn the value of such advertisement. Therefore, the PR professionals & corporate advertisers have to be conscious of the power of advertising & of the need to use that power for the common good.
The image of an oraganisation is multi-faceted & in the real sense it is not tractable. The publics like shareholders, investors, suppliers, customers or employees view the oraganisation from different perspectives. Corporate advertising interestingly does not ask for any action on the part of these publics except passive approval.
There is a need for greater image development through corporate advertising. Regardless of how high a company’s products are held in esteem by the public, this image is not transferable automatically to management competence or to positive attitudes about the company’s future direction.
NATURE AND SCOPE
The different types of corporate ads in use are as under:
1. Corporate ad looking like a product ad which encourages people to trust and enjoy dealing with the company.
2. Social service ad to establish reputation.
3. corporate ad to convey specific information to the public & at the same time to promote the oraganisation.
4. Product ad taking corporate like to give added value to the product.
5. Institutional ad devoted to building customer attitudes relating to the oraganisation. The basic objective is to promote patronage or favour on the basis of these attitudes.
6. Public issue & financial ads for information as well as for direct campaigns.
Government advertising in another field for image advertising that has developed over the years. The government advertising is all pervasive, reaching into all lives in all directions & entering into all activities today the government employs advertising to encourage purchase of its bonds & financial instruments, to get votes for the party to make government decisions understandable and acceptable, to publicise development work, & any other activity which has a bearing on the public.
Such advertisements are issued at the municipal, state & central level. Indeed the government has found advertising as the most powerful instrument of communication & it is making conscious efforts to build in own kind of corporate image.
OBJECTIVES OF CORPORATE ADVERTISING
1. Create a good citizen image through consistent & dedicated effort.
2. Convey the organizations commitment to the concerned publics as well as to the masses & eliminate prejudices, if any held by opinion leaders in particular & by the public in general.
3. Boost both employee management relation & employee morale enabling all members of the internal public to discover a new vitality.
4. Raise money from the public which gives rise to demand for resplendent images like financial reliability, leadership, strength & competence.
5. On the marketing front it is easier & cheaper to sell product or services with less marketing budget.
It is noteworthy to state that one of the most important developments in corporate advertising whether in India or abroad is its increasing maturity. With maturity has come a knowledge of how to operate with a social & economic system.
Public Relations Personnel Code of
1. Company’s first responsibility with their customers:
Our products & services will always be good. We will strive to make them better at lower costs.
Customers ‘orders’ will be promptly & accurately filled.
Our dealers will be helped to make a fair profit.
Our ‘after-sales’ service will be dependable, & our relations with customers will be cordial.
2. Company’s second responsibility will be to those who work with them- the men & women in our factories & offices:
They will have a sense of security in their jobs.
Their wages will be fair & adequate commensurate with the social & economic environment in which company operate.
Working hours will be conducive to production & conditions clean & orderly.
There will be opportunity for advancement for those well qualified & experienced.
Each employee will be considered first as an individual, standing on his or her own dignity & merit.
3. Company’s third responsibility with the Board of Directors:
Their executive will be persons of talent, education, experience & ability. They will be persons of common sense & full understanding.
Promotions & incentives to employees will be on the basis of “how good are they to the corporation; not how good are they to individual bosses’”.
4. Company’s fourth responsibility is to the communities in which we live:
Company will help maintain the character of a good corporate citizen by supporting good works & charity.
We will endeavor to generate the feeling that all the properties company privileged to use their first.
We will participate in civic improvement programs; health, education & good government, & acquaint the community with their activities.
5. Company’s fifth responsibility with their shareholders:
Reserves will be created, research will be carried on.
Adventurous program developed, & mistakes are not repeated.
Bad times will be provided for. Instances of a heavy tax burden will be represented to the government via the good offices of the Federation of Chambers of Commerce & industry.
Outdated machines written off & new ones purchased to ensure quality & efficiency of production.
New factories built, new products launched, & new sales plans developed.
Is Corporate Advertising necessary ?
In the field of Corporate advertising PR is in a stronger position to employ the weapons such as TV, Home Video & Satellite etc. for specific purposes. The advertising professionals do not hesitate to draw on the skill and knowledge of PR experts who are expected to be master craftsman in the techniques of corporate advertising and communication.
1. There was a time when corporate, prestige or institutional advertising was the advertising world’s concept of public relations. Judging by some of the advertisements, mostly in full color, which appear in business newspapers and magazines like fortune and The Economist, it still is! Television viewers, used to hard-selling ads for detergents and dog foods, have been perplexed by corporate commercials because they did not seem to be selling anything.
It is difficult to tell what some corporate ads are supposed to do beyond fill the coffers of publishers & advertising agents. They make a lot of journals look very pretty.
True, it has been said that a company needs to be seen. There are cheaper& probably more effective ways of doing it than full-colour press advertising, although it seems to appeal to Arab banks.
2. The improbability of corporate advertising was brought home to me when a marketing research interviewer phoned me at home one evening & apparently knew that I was a subscriber to The Economist. By the end of a pleasant telephone interview we both knew that it was possible to read The Economist for years, to be aware of pages of full-colour corporate ads, to recall the names of some of the advertisers but to be oblivious to what they were saying and to fail to remember their strap line slogans.
3. If corporate advertising is to be justified- and the sceptocism expressed above is not meant to imply that it cannot work- you have to ask two questions. What do I want to achieve and to whom it should be addressed?
4. One wonders how often these questions are ever asked. So many corporate advertising campaigns seem to have a standard media schedule, of which The Economist is an example. The Economist is probably the last place to put some of the corporate advertising which contributes to its weekly bulk. There are times when it would be appropriate to put corporate ads in popular newspapers like the Sun and the Mirror.
5. What is the purpose of corporate advertising, and why must advertising be used for PR purposes? Some good questions there!
To take the second question first, the only justification for using advertising for PR purposes is when it is essential to state exactly what you want to say, to do it as boldly as possible, & to do it in certain media on a certain date. In other words, you want to have complete control of your message.
The answer to the first question is that corporate advertising aims to enhance the corporate image by saying favorable things about it.
6. In a sense that a perverse form of PR for surely advertising. The media tend to assume that bad news is good news and good news is no sort of news at all.
7. Corporate advertising can therefore serve the purpose of presenting the good news about an oraganisation which the media would not normally print. This is a tendentious argument because it admits the failure of traditional media relations.
8. Given that such a situation exists, corporate advertising can be a legitimate form of PR, adopting a positive tactic in urgent circumstances. This is very different from merely flying the flag which is what so much of this sort of advertising seems to be.
9. Serious corporate advertising therefore has a purpose: it aims to convey an urgent message to a selected public.
10. Let us take a hypothetical example. Suppose your company has suffered bad publicity because of a series of set-backs. Your share price has fallen. The trade is wary. All sorts of risks exist. You could lose orders, key staff could desert you, & a take over bid might well be imminent. And yet you know that the truth is very different. There is no need for panic. you have a new factory coming on-steam to produce a market-leader, & the good news is about to break. To stop the rot, and create a favorable market situation, you could place a confidence booster corporate advertising campaign in journals as varied as the Financial Times, the trade, technical, professional & local press, plus the leading nationals read by your distributors & customers.
Now that would be a real purpose-built corporate campaign which was aimed at the right people in order to actually do something. They did not use pretty coloured pictures; instead they used dramatic headlines & typography.
11. There is another kind of corporate advertising which is very effective & that is issue or advocacy advertising. Used by mobile in the states, it has been dubbed op-ed advertising because such advertisements have been deliberately placed opposite leader-page editorials. The objectives of this kind of PR advertising are two-fold as will be explained. In a sense, this is a kind of lobbying or pressuring via the media- usually the press, but TV can be used.
Whereas the typical British corporate advertising is full of pretty pictures and highly literacy copy, and talks of great achievements, historical record or the excellence of its research, the American style issue advertising tackles issues of government policies on, say, pollution, the environment nuclear power, drugs or crime, or it presents the case for an industry under attack from either government or pressure groups.
12. Oil companies have used media such as the Sunday colour magazines & TV to show how they are protecting wild life or are engaged in other energy industries. Leading up to privatization, a number of enterprises have used corporate advertising to establish a corporate image. We have also seen companies using this form of PR to explain their diversification when they were often thought to merely monopolise in one industry.
Issue advertising is not quite like the propaganda ads which certain interested parties published in Britain in the 60s and 70s to protect themselves from the labour governments nationalization plans. Issue advertising seeks to create better understanding of a company’s attitude, position or even desire to have a vary positive use of advertising for a PR purpose.
It is vital to distinguish between vanity and purposeful institutional advertising.
13. There are, of course, other kinds of corporate & financial advertising which are legitimate. You may wish to present your company’s case during an industrial dispute, or publish a summary of the annual report, & the offer of a copy of the full report may be advertised.
Decide why you need corporate advertising. Is it to present a case quickly in words & media of your choosing? Is it to position yourself firmly in the market place? Is it to clearly identify & establish your corporate image? Or do you want to put on record your achievements? Or do you want to show how you are responding to government policies, or contributing to social issues as Shell and BP have done? Maybe you want to show the contribution you are making to the economy. These are all vary positive aims. Prestige derives from such advertising, but that is not its sole purpose.
Justify the Statement:-
“ Advertising is what you say about yourself, & PR is what
other’s say about yourself ”.
Advertising is a commercial, persuasive activity aimed at promoting a specific idea or a viewpoint, product or a service or an institution through the use of mass media. Advertising presents the most persuasive possible selling message to the right prospect for the product or service at the lowest possible cost.
In any case, PR costs less than advertising if you have something of interest and value to the public which the media will want to tell them about. There are many instances when an advertisement is preferred to “free Publicity”.
The following are few examples:
1. An advertisement accommodate much more material than a press release and it is not altered or proved mercilessly by editorial staff.
2. In order to have a bigger turn-out for an event, advertising is of a greater help than any other form of communication including public relations.
3. It is cost effective and easier to buy an advertisement space in the long run rather than bringing out press release which may sometimes even not get printed.
An advertisement through any media will not enjoy same respectability as news coverage would.
The following are the relative advantages and factors in one’s favour or against:-
1. Every oraganisation irrespective of its nature is involved in public relations. Advertising may or may not be used by an oraganisation for an example hospitals, and social service oraganisation may not advertise every now and then, but they will have to use PR in a big way at every step.
2. Advertising is limited to special selling and buying tasks and hence requires less time. On the other hand PR demands more time and effort than advertising. In case of advertising the basic jobs of conceptualizing, producing, space buying etc. can be fully delegated to agencies whereas such total hiring of agencies for absolute PR function cannot be conceived.
3. PR not built overnight, it is a long-term policy measure. It also does not come free of cost. The comparative cost cannot be assessed in terms of advertisement rates for PR expenses.
There are no reasons for advertising and PR to work at cross purposes, although they can have their separate fields of operation. Public relations can have their separate fields of operation. Public relations can use advertising as a weapon or a tool. It can effectively use advertising to fulfill its own purpose.
In the present era, Advertising & Public relations are now joining hands towards fulfilling common objectives. PR enjoys a distinct advantage in the field of corporate advertising.
Through advertising and public relations were not commonly mixed still advertising has been one of the key strategic tools in PR. Hence there are numerous examples available today where advertising and PR work together as a communication group. The benefits of integrated approach and its results in terms of impact and mileage are tremendous. Another important area where PR shows its expertise is in the use of a number of communication tools like TV, home video, satellites etc.
As PR can make an impact on public opinion they can make an important contribution to planning out advertising in support of marketing and sales activities.
Advertising is what you say about yourself, PR is what other people say about you. Make sure that the two match, because the one can influence the other.
There are some examples of Corporate Advertising:
Indian Tobacco Company (I.T.C )
ITC is one of India’s foremost private sector companies rated among the World’s Best Big companies & also India’s most respected companies. Over the years, ITC has evolved from a single product company to a multi-business corporation. ITC is one of India’s most valuable & respected corporations.
ITC has partnered the Indian farmer by introducing of IT through its e-choupal initiative. Under this initiative, ITC has set up Internet facilities in villages to help farmers access crop specific web sites created by the company.
Thus the company’s e-choupal initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.
Hindustan Lever Limited. (HLL)
Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HLL is also one of India's largest exporters.
Lifebuoy Swasthya Chetana
Lifebuoy Swasthya Chetana is the single largest rural health and hygiene educational programme ever undertaken in India. Its objective is to educate people about basic hygienic habits.
Standard Chartered has also arranged Mumbai Marathon. They get lot of response from the people by their participation in race. This year they are also arranged Corporate Sporting Challenge. The money which is collect from this race are donated to the charity. Standard chartered wants to be big marathon race in the world. So, this people shows their social responsibility towards society which create corporate image in minds of the people.
So, this companies creates corporate advertising by showing social responsibility towards the society which create corporate image of the company & also helps to maintain good public relation & influence people to use the company’s products.
CASE STUDY ON CORPORATE ADVERTISING
Hindustan Paper Corporation was established in 1970. The business of this company was to help & remove shortages in the field of writing paper, printing paper & newsprint & to ensure that paper was distributed in rational & equitable manner. Although the company was started in 1970, but the level of awareness about the company until as late as 1977 was extremely low. Even they found out that awareness of Hindustan paper corporation as a corporate entity was low & awareness of the companies activities was even lower. There was not much of popularity to the company.
Thus it was obviously impossible for a growing company to build a market for its product or to attract the best talents into the company. The result of the above is that there fall in share company’s share in the market & all sort of risks exist. In such a circumstances the company may loose the orders, loose the staff working under company.
To deal with the company’s situation, it was felt that a market research survey should be designed & launched.
The objective of this communication would be:
1. To create awareness about the existence of the company & purpose for which is had been established.
2. To give it a recognizable identity.
3. To give a sense of belonging to the employees & the internal public
4. To project an image of the oraganisation amongst the external publics as one, which was helping to ensure a fair distribution of vital but scarce commodity.
Utmost care was taken to develop & implement effective communication strategy to achieve the said objectives.
An evaluation of the impact of the survey was carried out by the market research group of Hindustan paper corporation. The findings were that the survey cannot make lot of awareness of HPC & its activities.
PROBLEM OF THE CASE
1. Lack of awareness of the existence of the company.
2. The market for the company’s product was very low.
3. lack of effective communication amongst the internal public.
4. So the growth is not up to the mark.
SOLUTION OF THE CASE
1. To stop further depression & to create a favorable market situation, for that the company have to place a confidence boostle corporate advertising.
Corporate advertising help than any other forms of communication. It can serve the purpose of presenting good news about the company than any other media.
2. The company can maintain good public relation with their different types of publics i.e. customer, investors suppliers & so on.
Company’s management have to give chance to the different publics to present their views at the right time & at the right place. Because consumer is a person who actually consumes the product or uses the services.
3. Along with the market survey to create corporate identity there is need for greater public relation. They have to be more conscious about their target audiences i.e. prints, press etc.
Also the company has to use different communication tools like TV, home video & satellites etc. where corporate public relation shows its expertise.
Finally the public relation & corporate advertising believe in adequate consumer focus, which should be the spirit of the profitable oraganisation.
Public Relations Management:
By Romeo Mascarenhas.
Public Relation for your Business:
By Jefkins. Franklins.
Effective Public Relation Management:
By K.R. Balan.