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Marketing: The Core 8th Edition

Marketing: The Core (8th Edition)

Book Edition8th Edition
Author(s)Hartley, Kerin
PublisherMcGraw-Hill, Inc.
End of Chapter

Chapter 16, End of Chapter, APPLYING MARKETING KNOWLEDGE, Exercise 1

Page 452


Organizations use competitive product advertising for differentiating its product. This strategy helps the organization to distinguish itself from its competitors. Institutional advertising helps an organization to build a positive image about them in society. 

In a competitive product, advertising emphasis is given on product benefits so that customers can purchase the product instead of purchasing it from the rivals. Some businesses name the rival, while others use generic phrases to define them. Institutional advertising shows the benefits of one class of product over another. This strategy is used in markets where various types of products compete with each other.

Verified Answer

The difference between competitive product advertising and competitive institutional advertising are as follows - 

  • competitive product advertising focuses on the sale of a company's product or service whereas competitive institutional advertising focuses on building a positive image of an organization.
  • In competitive products, advertising emphasis is given on product benefits. On the other hand, in competitive institutional advertising emphasis is given on the company's brand, its goodwill. 
  • Example of competitive product advertising - Company B advertises its product A by comparing and promoting its low price with that of product G of the company I. Example of Competitive institutional advertising- Company X advertises to promote its milkshake in the market of beverage-consuming customers competing with soft drinks of other companies.
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