Describe the major types of advertising, and discuss how they ...

[dbose]

Describe the major types of advertising, and discuss how they differ.

Question 2

Henderson Synthetics is a producer of chemical products aimed at increasing agricultural yield per acre. Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries; however, it is costly to obtain market research to confirm this. If Henderson Synthetics wanted to temporarily try out these international markets with a minimal level of commitment and cost, it should use
 A) contract manufacturing.
  B) exporting.
  C) joint ventures.
  D) licensing.
  E) subsidiaries.

[tdewitt]

Answer to Question 1

Advertising can be classified as institutional or product advertising. Institutional advertising promotes organizational images, ideas, and political issues. It can be used to create or maintain an organizational image. Institutional advertisements may deal with broad image issues, such as organizational strengths or the friendliness of employees. They may also aim to create a more favorable view of the organization in the eyes of noncustomer groups, such as shareholders, consumer advocacy groups, potential shareholders, or the general public. When a company promotes its position on a public issue, institutional advertising is referred to as advocacy advertising.
There are two types of product advertising: pioneer and competitive. Pioneer advertising focuses on stimulating demand for a product category by informing potential customers about the product's features, uses, and benefits. Competitive advertising attempts to stimulate demand for a specific brand by promoting the brand's features, uses, and advantages, sometimes through indirect or direct comparisons with competing brands.

Other forms of competitive advertising include reminder and reinforcement advertising. Reminder advertising tells customers that an established brand is still around and still offers certain characteristics, uses, and advantages. Reinforcement advertising assures current users that they have made the right brand choice and tells them how to get the most satisfaction from that brand.

A newer form of advertising is known as native advertising. Native advertising is digital advertising that matches the appearance and purpose of the content in which it is embedded.

Answer to Question 2

B