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Promotion Mix: Advertising (B)
by Laurus Nobilis

What is the role of advertising within promotion mix? What is the difference between product advertising and institutional advertising?

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Posted: Nov 2009

Advertising is the basic element of promotion within marketing mix. Advertising is any form of indirect presentation of ideas products or services. The basic purpose of advertising is to stimulate demand and product sales. Therefore advertising is considered to be basic instrument of sales and communication with public.

The advertising can support two different goals of the company. If the goal of advertising is the product or service, with the purpose of sales increase it is called Product Advertising. On the other hand, if the goal is to promote the image of the company, than it is Institutional Advertising.

Product Advertising can have different roles. The most important roles of product advertising are:

Pioneer Advertising that points to primary demand for the product. It is relevant during the introduction phase of the product. Since the product is new the pioneer advertising is promoting novelty and set a new trends.
Competitive Advertising is pointing for demand increase for specific product of the company. Since the product is in the phase of growth or maturity, competition is developed and active. Therefore the goal of competitive advertising is to differentiate product from the competition and to increase or protect sales volume.
Sustainability Advertising has a goal to keep the loyal segment of customers. The Sustainability advertising is reminder advertising that makes sense for established and developed brands.

Institutional Advertising has advertising goal that is much wider than the product advertising. While the product advertising is basic advertising stage, the institutional advertising is advanced level. Institutional advertising cannot be conducted without developed product advertising.

The institutional advertising is developing image of the company, clarifying the mission and vision to population and building the public opinion about the community contribution of the company. The example of institutional advertising can be promotion of eco & recycling programs, introduction of new additive free food production technology, switching from import to local production etc.

The usual channels for communication of product advertising and institutional advertising are TV, radio, newspapers, internet advertising, mail, e-mail, billboards, ... The Advertising activities are planned mostly by the company, with consulting and execution by marketing agencies.

More About:

Marketing Mix
Marketing Mix: Price
Marketing Mix: Promotion
Promotion Mix: Advertising
Promotion Mix: Public Relationships
Promotion Mix: Personal Sales ( Soon )
promotion Mix: Sales Promotion ( Soon )

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Manage Your Business Development

Promotion Mix: Advertising (B) by Laurus Nobilis

Promotion Mix: Advertising (B)
by Laurus Nobilis