Thursday, June 18, 2009

Corporate Advertising: Enhancing corporation image, identity, and reputation

Corporate Advertising

Corporate advertisement is designed to promote the organization as a whole rather then promoting a specific product or service. Corporate advertising is used to enhance the corporation image and reputation among the target audience. Corporate advertising is the means to facilitate positive public perception of business. The main function of corporate advertising is to generate and enhance a sense of confidence and appeal among shareholders. Depending on the exact nature of the corporate marketing approach, the advertising may also be developed with an eye of enhancing the reputation of the company among its peers in a community or within a given sector of the marketplace. In today’s business environment, corporations are facing incidents or factors that are damaging the reputation of the company. Factors may include unsubstantiated claims made about the business practices of the company, or some aspect of the quality of the products produced by the corporation. In above case corporate advertisement can be used to re-strengthen the image and reputation of organization. Corporate advertising campaigns may also help to restore consumer confidence when a takeover or merger involving the company takes place. a well-crafted corporate advertising campaign is a powerful tool for use in damage control situations, and may be capable of restoring confidence after the public perception of the business has been stained in some manner.

Toyota Corporate advertising

My Experience:

I was working in Nokia during my internship. At that time there is growing concern about environment. As their social responsibility Nokia also took step to save the environment by using biodegradable materials like polylactic acid (PLA) plastics with plant or other biomass-based modifiers in its phones; thereby making least use of non-renewable resources. PLA also needs little energy for its production. Nokia also planned to make energy saving chargers. In a bid to make an environment friendly move, Nokia brought 40 models with bio-degradable components. The components in the model will be recyclable so that the customers can send their Nokia phones for recycling purposes by putting them in ‘Green Bins’. Green Bins will be provided by Nokia to all its Nokia dealers in India. Another step taken by Nokia at that time was to educate and train its care centers on environmental issues and recycling materials so that they can also educate customers; as a part of Nokia’s take-back program. The success of the campaign was pretty evident because we as employees can see growing number of consumers who want to be educated about this matter and who want to contribute in saving environment. With this step Nokia wanted to be leader in Greenpeace “guide to greener electronics”. Taking steps to produce eco-friendly products Nokia gained the confidence of the consumers who are concerned with growing environment problems. This campaign helped Nokia to strengthen its image and reputation among consumers.

Nokia goes green

Website links :


  1. I really enjoyed reading about Rohit's experience with Nokia. I think it is great that Nokia is playing a leading role in properly disposing and recycling of old cell phones. Cell phones do have many environmentally harmful components, especially the non-biodegradable cases and the potentially hazardous old batteries. Nokia is demonstrating a positive corporate vision by taking on a mission to become greener. Their subsequent advertising campaign further aligns their public image with their identity.

    My experience

    I have recently started working with a new client named Consol Energy. This Pennsylvania headquartered corporation, ticker symbol CNX on the NYSE, is a large energy conglomerate in the business of extracting and marketing fossil fuels in the eastern United States.

    A Little About Consol Energy's New Vision

    Recently, Consol Energy started an aggressive advertising campaign to enhance corporate image and to build corporate reputation to recruit a future workforce. Consol operates hundreds of local coal mining and natural gas drilling operations in several states in the Appalachian basin. It is one of the largest coal companies in the United States, and one of the largest independent natural gas producers in the eastern part of the country. With the big political and public interest push to develop and exploit green energy, the coal industry has been heavily attacked and scrutinized due to its nature as a dirty industry and large carbon emissions from burning it as a fuel for power generation. Thousands of people's jobs and livelihoods in the Appalachian basin rely on coal and natural gas. Therefore, Consol has recently begun an aggressive advertising campaign to improve its public image and to gain public support to keep its mines operating, and to recruit more individuals for its growing operations. Its campaign encompasses many forms of media ranging from billboards to television commercials. It also has purchase radio air time as well as magazine space. I believe that the campaign is working for two reasons. The company's stock has risen considerably in the last two month, meaning that investors are not shying away from all the recent pressure of switching from dirty coal to cleaner energy sources. Second, the company is experiencing great cooperation from the local public in its willingness to lease properties for new coal mines and gas exploration. In fact, my father recently leased one of his 100 acre farms to Consol for deep mine development.

    The first link listed below is an example of a billboard that was posted along interstate 70 near Washington, Pa. The second link is for a website called that contains several of Consol's television commercials you can view.

  2. Rohit made a detailed description on Corporate Advertising and I really enjoyed reading the Nokia case and their steps to save energy and going green. Here is what I have about Corporate Advertising.

    Why it is necessary?

    The two basic types of advertising are product and corporate advertising. The basic aim is to build corporate image, reputation and name awareness among general public.

    Today being a global environment, it is very important for a firm to differentiate itself from others i.e. its competitors, the external environment, and threats. Corporate advertising plays an important role in this context. Careful assessment of organization's overall communication strategy leads into the broad categories of image advertising, financial advertising and issue or advocacy advertising. Every organization has some responsibility towards the environment and towards the society as well. Publicizing such factors not only increases the reputation of the company but also reinforces people's confidence towards the firm which indirectly encourages the firm to further excel in the long run. Moreover, advertising can be done to attract different constituencies like customers, employees, investors; media with different focuses like to attract investment, to influence opinion, to make a stronger reputation and most commonly to increase sales.

    Life Experience Example

    Reliance Infocomm is an ideal example that comes to my mind with the issue in hand. I owned some shares of Reliance Infocomm and it was worth it. The company has come up with several corporate advertisements in order to strengthen its image and identity in the society. Furthermore in the past it has tried to explain its vision and strengths along with its goals to maintain its reputation.

    Reliance’s corporate advertising is designed to shape a strong and desirable corporate brand image of Reliance and promote perception of Reliance as a leader in communication industry in India. Their most successful advertisement was “Kar Lo Duniya Mutthi Mein” meaning “The Power Of world in your Hands”, blending cricket with Indian culture. Reliance advertisement speaks about leadership as examples of the company’s overall ability to provide innovative solutions that empower the customers to achieve their goals. The company is also attracting investment in this way. Of lately the company has come up with share which has stimulated interest in company’s stock among potential investors. This kind of advertisement can stimulate public’s interest to have a closer look at the company.

    Reliance’s advertisement appears year round and in a number of TV shows, entertainment magazines, business publications and more. Each ad serves a specific purpose and delivers a specific message to their valued customers. Reliance is now amongst one of the most trusted brand in India. It has revolutionized communication industry in India and is initiator of the cheapest communication services in the world.

    Helpful Links:

  3. This is an excellent article of Rohit. It shows impressive like an international enterprise to use a current condition – environmental protection – for itself to create a corporate advertising.

    There is a proverb in Germany: “Whoever does not advertise, dies.”

    Of course, advertising cost a lot of money and every year a company have to calculate in their cost estimate the maximum amount of advertising. But it’s absolute necessary that a company have to spend money in advertising to growth up their value. It creates the consciousness among its customers to be looked after by the right enterprise. The customer retention is increased and therefore also the ideational value of the enterprise. The main purpose of the advertising, of course, is to generate more sales volume and therefore more profit.

    Nowadays there are many examples about financial institutions who improve their reputation and the image regarding the disaster of the financial crisis. Now they have to spend much money in a strategically advertising to tell the people, particularly their customer, about their company’s philosophy and how they will get out of the crisis. Much more importantly is to show the customers credible that they can be protected from the next crisis. They must win back the confidence of their customers and win new customers.

    There is a current example about an article printed in the “Financial Times London”, published June, 14th, 2009. The name of the article is “BofA beefs up image with Merrill Lynch icon”. The Merrill Lynch name and the linked symbol of the bull are set to be given a fresh promotional push by their new owner, Bank of America (BofA). In such way BofA used the established name of a renowned company to get back their reputation. Furthermore, BofA use the icon – the bull as a sign of increasing values – to raise his image to the customers. Merrill Lynch went bankrupt due to the consequences of the financial crisis. BofA took the shattered institute and takes not only the customers but also the trademark and the image. Merrill Lynch was a very successful investment trust with a great image and a high publicity. The bull as a trademark also stood for it. BofA tries now to install the trademark of Merrill Lynch in its corporate advertising.

    There is an other example about my own experience in my financial institution. At present, environmental protection is the talk of the town. Last year we started a corporate advertisement about solar energy. Furthermore, we have a part in our business philosophy about environmental protection. We created a corporate advertising about environmental protection and solar energy. Now, our image to the customer have increased. In addition, we have more business transactions in the credit transaction than before. Our volume of trade rose continuously through this corporate advertisement. This example shows that current circumstances can be use well for the corporate advertisement. This advertising pays off. Not only the profit in this market segment rises, the image also improves.

    My comment based on a currently "real-world" example from my occupation. The topic from the chapter five was pick up in an article from the “Financial Times London”, published June 14th, 2009. Complete in electronic form – the link will give the whole article.

    The Merrill Lynch internet page:

  4. I also enjoyed Rohit's story about Nokia's proactive approach to helping save the planet. Many companies are using corporate advertising to inform the public of their commitment to using green technology and producing green products. In my opinion, it's a very positive trend that continues to snowball. I hope it continues and filters down to permeate all areas of our culture.

    Having worked for several companies, I’ve assisted in developing product advertising pieces, but have never been involved in corporate advertising. However, my family has definitely been affected by the economic downturn and I’m noticing a lot of advertising, especially for large corporations and financial institutions, aimed at reassuring the public of their financial stability.

    A major corporate ad campaign has been launched by Geico to do just that. Alongside their regular ads are those linking their name with Warren Buffet, the financier who controls Berkshire Hathaway, the company that has owned GEICO for over a decade. The campaign which is being launched in conjunction with the company’s regular product advertising portrays a businesslike gecko. This is a brilliant effort on Geico’s part (Martin Agency Advertising, Richmond, VA.) to use the gecko, whom the world has come to love and trust, as the spokesperson for their corporate stability campaign.

    The following article from the University of Pennsylvania Wharton School website discusses the importance of increasing overall spending on advertising during tough economic times.

  5. Rohit’s piece about Nokia serves as a great example of the benefits of good corporate communication. Today, information is share instantly and the good will of company can directly affect the bottom line. It’s important for companies to take advantage of their social deeds and effectively communicate their efforts to the public. Since the Industrial Revolution the world’s business has put a major strain on our environment and Nokia is doing a great job trying to minimize biohazards their products produce.

    My Example

    In one of my graduate classes my team wrote a proposal to open a Spring Hill Suites. Spring Hill Suites is one of several brands operating under the Marriott Hotels and Resorts. At that time Marriott was doing a lot of corporate advertisements to communicate their “greening” efforts. This was a major focus for the project. Our proposal included taking advantage of environmentally friendly products and services to gain funding for the project. They are still continuing their Green Marriott campaign. They have partnered up with several companies including Conservation International, Energy Star, and the U.S. Green Building Council to support their preservation activities. On their website they have an entire section dedicated to communicating their stories. They host a Global Green Gulf Initiative as well as other conference and initiatives aimed at preservation and sustainability. They build hotels that maximize natural light, they use recyclable products, and they use water and energy preserving appliances.

    This type of corporate advertising can greatly benefit a company. Marriott’s campaign is helping them create a reputation and an image as the cleanest and greenest hotel chain in the world. This is a great advantage especially since hotels are often scrutinized because of the lack of cleanness. Customers want to stay in clean hotels and some investors feel better investing in a company that makes a difference. Their reputation as green company has definitely had a positive impact on their business.

    Suggested Links

  6. I really appreciate the detailed explanation of Rohit about the topic “Corporate advertisement”. Corporate advertising can help corporation to develop and enhance the confidence of their constituencies toward them. Corporate advertisement is focused on company as a whole rather than their specific product or service. I will say focused corporate advertising can help company to enhance their image, identity, and reputation.

    I was working in Arab national bank as a branch manager before starting my MBA. In year 2003 our bank got so many awards like best bank of the year, best bank in IT sector, best bank in Internet banking, and best fund manger award. Few weeks later we had an annual meeting of all managers. I have plan of how to use this opportunity to enhance the bank image and reputation. I put forward my plan of creating the corporate advertisement using these awards as our achievements. I suggested creating hoardings with the picture of all awards which bank got this year. Motto of the bank at that time is to prove that we are the better among the best; this all can be done by creating corporate advertisement. All managers appreciate and approved my idea. We created this advertisement. The success of the advertisement can be seen from the fact that our customer base increased by 10% in the first quarter of 2004. With this corporate add we are able to create and enhance confidence of our constituencies.

    With this experience I learned that if the corporate advertisement is focused and adhered in a right way it could help corporation to improve their image, identity, and reputation.

    This is the link of Arab National Bank Award article:

    Here are some links to help you out all to know about corporate Ads:

  7. Usually, a corporation would focus most on advertising when considering external communication. For companies which compete in a global economy, they would face the language barriers just like individuals. And the first issue when a company decides to enter a foreign marketing and hence start a marketing campaign is the translation of the brand name or product names. A wise translation of brand or product names would benefit the advertising activities and help significantly to build up a positive public image as well. As far as I know, all of the multinational corporations which have succeeded in China do have wonderful translations for their brand name. For example, IKEA has a Chinese name of “Yi Jia”, which pronounced almost the same way in English and means “a comfortable house”. On one hand, the pronunciation of the Chinese name is easy for communication. On the other hand, the meaning of the name is able to deliver to customers a related and positive image itself. And this clever translation would make following advertising much easier. Another example is the product name of Coca Cola. Its Chinese name is “Ke-Kou Ke-Le”. The pronunciation is similar to the English one. The word of “Ke-Kou” for Coca means delicious. And the word of “Ke-Le” could means “interesting” or “enjoyable”. The name itself is able to build a proper image for this casual beverage product. And it did helped Coca Cola to achieve great success in China.

    Here is a website about Brands translation:

  8. I liked the way Rohit summarized the chapter and gave the main concentrate of it. Nokia going green is true and personally, I like Nokia and still using one. Both corporate and product advertising are equally important for the company. One (corporate) giving the overall awareness of the company and enhancing the reputation, whereas another one (product) is more focused on a particular area and helps company to get more revenue and market share.

    My personal Experience:

    I was with Cipla Pharmaceuticals in India after finishing my B.pharm. I was in detailing or in layman’s term a medical representative, who goes and approaches doctors and gives them details about new prescription drugs. So this is one kind of product advertising in my field and I was doing that. We would be given all kinds of broachers and information about the medicine along with some samples. In a very short time we were suppose to explain our product to the doctors, it used to feel just like elevator pitch speech at that time. The drug/medicine I was dealing with was dealing with was for coronary artery disease.

    Another type of advertising of my previous employer would be “i-pill”, a very successful product. “i-pill” is an emergency contraceptive tablets to avoid pregnancy. The marketing of this product was so intense that it made this product ubiquitous. It is one of the hot brands launched in India, not only in pharmaceuticals but in nationwide launched all the category brands in 2007-2008.(Source – Businessworld)

    Here are some links giving more information about what I just shared:

    This drug is so successful that Cipla is now launching another drug of the same category. Here is a link telling more about it.

    For the corporate marketing of Cipla, it only has to say about its history and how it started. Because Cipla gave bitter-pill to all other pharma companies in India by selling the Anti-AIDS drugs at 3 times lower price. This humanity and noble cause by founder Y.K.Hamid is still in memories of people.

  9. These are all great examples of corporate advertising. In recent years, It seems as though social responsibility has been the main message that most companies are trying to get across to its constituents. Corporate advertising is probably the best way to enhance image and reputation, so most ads have been aimed directly at ways that could better the overall lives of everyone.

    My recent experiences include the corporate advertising strategy of IUP. IUP's Foster Dining hall is now tray-less... IUP is seeking to conserve energy and water consumption. By taking away the lunch trays that were openly available, IUP managed to reduce their water consumption by 30 percent. Another example is the Pennsylvania Clean Air Act. By not allowing people to smoke on the campus, this makes the school more marketable to prospective students and their parents. My last example was when I worked at Huntington National Bank. If we could convince the customers to sign-up for paperless billing, we receive additional compensation as incentive. Nowadays, it just seems like every company is environmentally conscious.