| Book Edition | 19th Edition |
| Author(s) | Ferrell, Pride |
| ISBN | 9781337272896 |
| Publisher | Cengage Learning |
| Subject | Business |
What is the difference between institutional and product advertising?
Advertising is a promotional tool that is used to communicate with potential customers about a product or service.
Institutional advertising is also known as advocacy advertising. The organization maintains its image with the help of institutional advertising. For example, Company PM is a manufacturer and deals with cigarettes. Since it is a harmful product the company started promoting its brand name through institutional advertising by promoting a social message to quit smoking.
Product advertising gives details about the benefits and attributes of a product. For example, Company S is a company that manufactures peanut filled chocolates. Its tag line is "Hungry? Grab an S chocolate." Thus advertisement directly tells the usage of the product.
Institutional advertising aims to share ideas, objectives, and political issues of the firm. Product advertising aims to promote the uses, features, and benefits of the product. The former is used to build a brand image while the latter is used to stimulate demand for the product.