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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
586 Part Five Developing the Integrated Marketing Communications Program Belch: Advertising and Promotion, Sixth Edition V. Developing the Integrated Marketing Communications Program Exhibit 17-16 The pharmaceutical industry uses image advertising Figure 17-6 On Board. Some of the U.S. Olympic sponsors AT&T Bank of America Blue Cross Blue Shield Budweiser Delta Gateway General Motors Hallmark Home Depot Jet Set Lucent Marker Monster.com NuSkin Office Depot Qwest Seiko Sensormatic Texaco United York 17. Public Relations, Publicity, and Corporate Advertising © The McGraw−Hill Companies, 2003 Exhibit 17-17 KitchenAid supports the fight against breast cancer nude females. The ad for America’s pharmaceutical companies (Exhibit 17-16) casts the industry in a very favorable light. In 2002 Philip Morris Company, Inc., shareholders voted to change the company’s name to Altria Group, Inc. Altria is derived from the Latin word meaning to “reach higher.” Philip Morris CEO, Geoffrey Bible, said that the name was being changed to reflect the fact that the company was no longer just a cigarette company and that the new name better reflects its diversity. Others contend the move was an attempt to disassociate itself from the negative image of cigarettes. 2. Sponsorships. A firm often runs corporate image advertising on TV programs or specials. For example, the Hallmark or IBM specials and documentaries on network TV and Mobil and Gulf Oil program sponsorships on public TV are designed to promote the corporation as a good citizen. By associating itself with high-quality or educational programming, the firm hopes for a carryover effect that benefits its own image. Other examples of sponsorships include those run by Outback Steak House (LUPUS), Providian Financial (children and youth), McDonald’s (UNICEF), and GM (Make-A-Wish). Exhibit 17-17 shows KitchenAid’s sponsorship of the fight against breast cancer. Visa considers sponsorships an important part of its integrated marketing communications. It has sponsored the Olympics, the U.S. decathlon team, U.S. basketball’s dream team, the U.S. Gymnastics Federation, the U.S. Open Tennis Championships, and Major League Baseball’s All-Star game. According to John Bennett, senior VP for international marketing communications, the sponsorships are designed to fulfill specific business objectives while providing support for the recipients. 32 Figure 17-6 shows a few of the companies that decided an Olympic sponsorship would be good for them. 3. Recruiting. The Mattel piece presented in Exhibit 17-18 is a good example of corporate image advertising designed to attract new employees. If you are interested in working in an innovative and family-oriented company, you might be interested in Mattel.
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