Question

How does competitive product advertising differ from competitive institutional advertising?

Answer 1

Advertising is defined as promoting and presenting your product, service, or organization to inform their key characteristics and highlight their main features through audio, video paid online and offline channels. Different organizations used a different approach to attract customers and sell their product, services. The methods are varied and a many. Some organizations use product advertisement and other use institutional advertising. The differences between the two are as follows:

Comparison parameters	Product Advertising	Institutional advertising
Definition	The focus is on promoting a product, its features, and highlighting its qualities, which attract the customers to buy it. For example, Starbucks promotes specific products like coffee and its known for its coffee.	The institutional advertising focuses on promoting an organization, its brand image and creating a unique brand value to promote the company as a whole. For example, Apple identified as a brand not a specific phone or I pad. Its promoting brand image and the organizations focus on innovation in technology.
Objectives	To create demand for a product by highlighting its salient features characteristics and the crease the reason for purchase. It increases sales and leads to company profits.	It focuses on the brand image and its key features. The goodwill of the brand is increased and promoted. The organization's activities and qualities like reliability, customer care etc are highlighted.
Types	This is done through offline and online advertising like radio jingles, TV ads, print media, social media, blogging etc to attract customers to a product	The method of advertising is also offline and online. The focus is on promoting organizations salient features and characteristics by TV ads, social media, and blogging. The content is on its basic policies and principle. The PR is actively used in addition to advertising.
Advantages	Give clear feed of the product to the consumer. The features of the product are highlighted leading to sales and increase in profits. It also clears misconception if any regarding the product. The advantages of the product over its competitors are also showcased by the company.	It creates a brand image you would like to associate with. It will define how the brand adds value to you. The products are automatically promoted as being good due to their brand image. The institution is guaranteeing its products and quality parameters. It also show cases the benefits its creating for the society, environment etc.
Disadvantages	It focuses only on a product-specific marketing and might mislead the customer into believing product features which are reinforced by excessive ads. The customer might feel cheated and move to competition. The product also has a life cycle beyond which organization will again have to promote the new product with the same zest and add to costs of advertising.	If the brand image takes a negative trend all products will have a setback till the brand image is rebuilt. The delivery of bad quality in one product might hit sales of all other products. It builds an organization and may not convert into direct sales.

To sum it up both methods are used to maximize sales and profits for the organization as and can be used in an appropriate manner as defined by their strategy.