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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
17. Public Relations,
Publicity, and Corporate
Advertising
position or try to create an image. Because they are not specific, many critics believe
their purpose is lost on the audience and these ads are not a wise investment of the
firm’s resources.
Despite these criticisms and others, corporate advertising has increased in use. It’s
been estimated that more than 7 percent of all advertising dollars spent are for corporate
advertising, meaning billions of dollars are spent on this form of communication. 29
While corporate advertising has generally been regarded as the domain of companies
such as USX, Phillips Petroleum, Aventis, and Deutsche Telekom (that is, companies
that primarily sell directly to the consumer market), this is no longer the case.
Beatrice Foods, BASF, and Procter & Gamble are just a few consumer-product companies
running corporate image ads, and Lucent Technologies, Microsoft, and Pfizer
have also increased expenditures in this area.
Since the term corporate advertising tends to be used as a catchall for any type of
advertising run for the direct benefit of the corporation rather than its products
or services, much advertising falls into this category. For purposes of this text (and
to attempt to bring some perspective to the term), we use it to describe any type
of advertising designed to promote the organization itself rather than its products or
services.
Objectives of Corporate Advertising
Corporate advertising may be designed with two goals in mind: (1) creating a positive
image for the firm and (2) communicating the organization’s views on social, business,
and environmental issues. More specific applications include:
• Boosting employee morale and smoothing labor relations.
• Helping newly deregulated industries ease consumer uncertainty and answer
investor questions.
• Helping diversified companies establish an identity for the parent firm rather than
relying solely on brand names. 30
As these objectives indicate, corporate advertising is targeted at both internal and
external audiences and involves the promotion of the organization as well as its ideas.
Types of Corporate Advertising
Marketers seek attainment of corporate advertising’s objectives by implementing
image, advocacy, or cause-related advertising. Each form is designed to achieve specific
goals.
Image Advertising One form of corporate advertising is devoted to
promoting the organization’s overall image. Image advertising may accomplish
a number of objectives, including creating goodwill both internally and
externally, creating a position for the company, and generating resources,
both human and financial. A number of methods are used:
1. General image or positioning ads. As shown in Exhibit 17-15, ads are
often designed to create an image of the firm in the public mind. The exhibit
shows how Tyco is attempting to create an image of itself as a market leader
and health care expert, not a toy company. A number of companies have created
new names—for example, Accenture, Verizon, and Allianz—in an
attempt to create a new image.
Other companies and organizations have used image advertising to
attempt to change an existing image. The American Medical Association
(AMA), responding to its less-than-positive image among many Americans
who perceived doctors negatively, ran a series of ads portraying doctors in a
more sensitive light. It spent over $1.75 million to highlight the caring,
sharing, and sensitive side of AMA members. 31 Penthouse magazine
attempted to change its image with advertisers by running ads in trade magazines
that showed Penthouse was not just a magazine with pictures of
© The McGraw−Hill
Companies, 2003
Exhibit 17-15 Tyco uses
image advertising to avoid
confusion
585
Chapter Seventeen Public Relations, Publicity, and Corporate Advertising