National Evaluation Series (NES) Business Studies Practice Test

Which scenario is the best example of institutional advertising?

1. A car company promotes a new model

2. A pharmaceutical company assures listeners of its commitment to price control while fighting disease

3. A clothing brand runs a promotion for a seasonal sale

4. A tech company advertises its product features

The correct answer is: A pharmaceutical company assures listeners of its commitment to price control while fighting disease

Institutional advertising focuses on promoting the overall image, reputation, or mission of a company rather than a specific product or service. It aims to enhance the public's perception of the organization as a whole, often highlighting its values, initiatives, or commitments to broader issues. In the scenario where a pharmaceutical company assures listeners of its commitment to price control while fighting disease, it exemplifies institutional advertising because it communicates the company’s dedication to social responsibility and ethical practices in a competitive industry. This approach not only positions the company as a compassionate and ethical player in the healthcare field but also fosters trust and goodwill among consumers and stakeholders. The other scenarios primarily focus on specific products or promotions. The car company's ad for a new model emphasizes product features and marketing rather than the brand's overall mission. Similarly, a clothing brand running a promotion for a seasonal sale directly targets consumer purchases without conveying broader corporate values. The tech company's advertisement of its product features also underlines commercial aspects rather than promoting the company's identity or commitments.