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Which of the following refers to advertising that promotes the company as a whole instead of a firm's individual products?

A) Institutional advertising.
B) Comparative advertising.
C) Informative advertising.
D) Persuasive advertising.

User Jan Moritz
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1 Answer

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Final answer:

Corporate advertising promotes the entire company rather than its individual products, building brand identity and consumer loyalty. It influences consumer demand and perception, affecting a firm's pricing and sales.

Step-by-step explanation:

The type of advertising that promotes the company as a whole instead of a firm's individual products is referred to as corporate advertising or institutional advertising. This approach is distinct from product-focused advertising as it aims to establish the company's identity, ethos, or brand reputation in the minds of consumers. For instance, when a beer brand employs a comprehensive campaign through billboards, commercial spots, and stadium ads, it reinforces the brand at every touchpoint, which can make the brand synonymous with the product category itself, and also potentially increase consumer preference and loyalty across all its products.

Furthermore, advertising shapes consumer perceptions and influences demand curve dynamics by either making demand more inelastic or by shifting the demand curve to the right. A well-crafted corporate advertising campaign can thus contribute to a firm's ability to command higher prices or sell greater quantities, buoying its profitability through broad brand messaging.

User Auberon
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