Quiz 18: Creating Competitive Advantage 

Business

It is very important to define advertising objectives carefully because they help in guiding the development of the campaign. These objectives should be stated clearly, precisely and in terms which are measurable. The clear and precise objectives help advertisers in evaluating the success of the campaign at the end in terms of the objectives achieved. All the advertising objectives given in the question are useful for the organization but the one which is most useful is where the organization wants to spend $1 million to become the market leader. This objective is most useful because it is very clear and precise and can be measured easily. This advertising objective clearly shows that the organization has a precise goal of becoming number one in the industry and that it wants to stay ahead of the competition. This objective also shows that the organization also has a dedicated advertising budget to achieve its objectives.

Advertising: Advertising is the way by which a company promotes its products and lures the customers to buy them. The customers of the company had been raising questions on the quality of the cars that the company was manufacturing. In order to negate the negative publicity, the company came up with a series of low profile ads in which the company admitted that it had strayed from keeping an eye on the quality of the products that it was manufacturing. The company took out ads in good newspapers and produced feel good television spots featuring dealers, mechanics and owners. The company offered no interest loans, two year maintenances, discounts on its products in order to win back its customers.

Institutional advertising is done for promoting a company's image rather than any specific brand. The primary objective behind this type of advertising is to create goodwill for the entire company and not just for a particular brand. On the other hand, product advertising is exactly the opposite and it is done to sell and promote a particular product or brand of an organization. The differences between both types of advertising are summarized in the table provided below: img