Question

PROMPT (Chapter 18): Most advertising is product focused. However, companies like Exxon-Mobile advertise their commitment to the environment, not their products, to inform, persuade, and remind consumers of positive thoughts about the company, which can prompt the purchase of products and services.

Why might Exxon be particularly interested in institutional advertising?

three paragraphs about four sentences each

Answer 1

Institutional advertising refers to the pehnomenon when an advertisement is intended to promote a company, corporation, business, institution, organization or other similar entity . In such an advertisement the consumer does not realise that the company is trying to sell anything . It is closely related to public relations . Such kind of advertisements attempt to repaid a damanged company image .

As for example let us take the market for bicycles . Each bicycle has almost same features with slight difference is the model . So traditional advertising would not create huge difference for a company . Here comes the function of institutional advertising . A typical consumer will be more drawn towards a bicycle if it advertises that riding bicycles can save out environment .

This lack of distinction between each company’s product is the reason companies like Exxon-Mobile will use institutional advertising as opposed to traditional product focused advertising . It is an American multinational oil and gas corporation . So oil and gas has no special and very different features , the only thing that can attract consumers is the way of advertising .