Product AdvertisingThe stage in the Product Life Cycle (PLC) of which a product is in often determines the type of advertising that is used by advertisers. The types of product advertising that marketers can choose from are: Show
 Product AdvertisingThe type of product advertising a company chooses depends on where the product is in its life cycle. Pioneering AdvertisingThis form of advertising is designed to stimulate primary demand for a new product or product category (McDaniel et al, 2006). It is heavily used in the introductory stage of product life cycle when a new product is launched. This type of product advertising provides in-depth information of the benefits of using a product or service. It is often used to create interest and to increase the public's awareness. Competitive AdvertisingThe goal of using competitive advertising is to influence demand for a specific brand (McDaniel et al, 2006). The advertisers usually provide information regarding a product's attributes and benefits which may not available from competing products (Yeshin, 1998). Even when other brands own the same attributes or benefits, advertisers often create an impression that their products are somehow ‘much better' than other, similar products available in the marketplace. Comparative AdvertisingComparative advertising compares two or more competing brands on one or more specific attributes, be it directly or indirectly (McDaniel et al, 2006). Comparative advertising gives consumers a logical decision factor as most of them do not want to make decisions (MacArthur and Cuneo, 2007). This way, by comparing one company's brand with other competing brands in the advertisement, the company most likely helps the consumers to choose which brand they would prefer to use. Abstract In this article, the authors examine how the stage of product life cycle in which a brand enters affects its sales through brand growth and market response, after controlling for the order-of-entry effect and time in market. The authors develop a dynamic brand sales model in which brand growth and market response parameters vary by stage of life cycle entry, namely, by pioneers, growth-stage entrants, and mature-stage entrants. The authors estimate the model using data on 29 brands from six pharmaceutical markets. The results reveal advantages associated with entering during the growth stage. Growth-stage entrants reach their asymptotic sales level faster than pioneers or mature-stage entrants, are not hurt by competitor diffusion, and enjoy a higher response to perceived product quality than pioneers and mature-stage entrants. Pioneers reach their asymptotic sales levels more slowly than later entrants, and pioneer's sales, unlike later entrants' sales, are hurt by competitor diffusion over time. On the positive side for pioneers, buyers are most responsive to marketing spending by pioneers. Mature-stage entrants are most disadvantaged; they grow more slowly than growth-stage entrants, have lower response to product quality than growth-stage entrants, and have the lowest response to marketing spending. Journal Information JMR publishes articles representing the entire spectrum of research in marketing, ranging from analytical models of marketing phenomena to descriptive and case studies. Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. Corporate AdvertisingAdvertising designed to win an audience over to a specific point of view is called institutional or corporate advertising. Learning Objectives Distinguish between product-oriented advertising and corporate or institutional advertising techniques Key TakeawaysKey Points
Key Terms
Corporate Advertising The primary purpose
of advertising is to sell products or services. The company pays a fee or expense to have a message that simultaneously explains its brand or product distributed to as many people as possible. But sometimes it is designed to do something else: to win an audience over to a point of view. Such advertising is called institutional or corporate advertising. Corporate Advertising: Corporate advertising can be found everywhere and in different forms. When Wells Fargo Bank in California merged with American Trust Company, company officials were ready to go with the name "American Trust," but designer Walter Landor convinced them that "Wells Fargo"
would give them a more distinct image as the bank of the West. With an easily recognized symbol – a stage coach encased in a diamond shape – and some skillful advertising infused with an Old West flavor, the bank tends to appeal to newcomers, who pick it simply because it seems to come with the territory. Corporate Advertising Techniques Media such as
direct mail, TV, radio, print, and online delivers advertising from corporations and institutions to the public or a targeted consumer group. Conventional ads, such as those seen in newspapers or magazines, banner ads online, and commercials heard and seen on TV and radio, communicate corporate messages to the public in the hopes that the desired action is taken; a sale, an enrollment, an inquiry, etc. Corporate advertising can take the form of advice, offer helpful information in times of
crisis, congratulate a public or political figure, or announce a special event or occurrence that is of interest to a well-defined group or demographic. It is passive advertising that guides with an implied called to action that is subtle, unconventional, and never clearly stated, but the desired results is always the same; to get someone to take action or pay attention to something that is advantageous to the corporation or institution. Advocacy Advertising Advocacy advertising is related to institutional advertising. The difference is that in advocacy advertising, the
sponsor pushes a point of view that may have nothing to do with selling the product or building an image. Product AdvertisingThe stage of the Product Life Cycle (PLC) often determines the type of advertising that is used by advertisers for a particular product. Learning Objectives Define pioneering, competitive, and comparative advertising Key TakeawaysKey Points
Key Terms
Product AdvertisingThe stage in the Product Life Cycle (PLC) of which a product is in often determines the type of advertising that is used by advertisers. The types of product advertising that marketers can choose from are:
Product Advertising: The type of product advertising a company chooses depends on where the product is in its life cycle. Pioneering Advertising This form of advertising is designed to stimulate primary demand for a new product or product category (McDaniel et al, 2006). It is heavily used in the introductory stage of product life cycle when a new product is launched. Competitive AdvertisingThe goal of using competitive advertising is to influence demand for a specific brand (McDaniel et al, 2006). The advertisers usually provide information regarding a product's attributes and benefits which may not available from competing products (Yeshin, 1998). Even when other brands own the same attributes or benefits, advertisers often create an impression that their products are somehow ‘much better' than other, similar products available in the marketplace. Comparative Advertising Comparative advertising compares two or more competing brands on one or more specific attributes, be it directly or indirectly (McDaniel et al, 2006). Comparative advertising gives consumers a logical decision factor as most of them do not want to make decisions (MacArthur and Cuneo, 2007). This way, by comparing
one company's brand with other competing brands in the advertisement, the company most likely helps the consumers to choose which brand they would prefer to use. Licenses and AttributionsCC licensed content, Shared previously
CC licensed content, Specific attribution
What is pioneering stage of advertising?Pioneer advertising is the name given to the advertising campaign to launch a brand new product category. The purpose of pioneer advertising is to inform consumers what the product is, where it can be found, and how they can benefit from it.
What type of advertising is common during the growth stage?Persuasive advertising is common during the growth stage of the product life cycle. At this stage, firms compete directly and attempt to take market share from one another.
What is the objective of pioneering advertising?PIONEERING ADVERTISING--tries to develop primary demand for a product category rather than demand for a specific brand. COMPETITIVE ADVERTISING--tries to develop selective demand for a specific brand rather than a product category. DIRECT TYPE ADVERTISING--competitive advertising that aims for immediate buying action.
What are the three primary types of product advertisements?The three types of product advertising are comparative, competitive and pioneering. Companies must decide on the type of advertising strategy based on their overall promotional objectives.
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Pioneering advertisements would most likely be used during which stage of a products life cycle?
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