Hello there!
The difference between product promotion and institutional promotion is:
Institutional promotion:
- Brand building
- Corporate Advertising
- Used to bring people to their company
Product promotion:
- Product advertising
- Used to attract customers into a product
- Used to increase the value of a product
Those are the main differences between an institutional promotion and a product promotion. A institutional promotion is to pretty much advertise the company as a whole to customers, not a specific product, but on the other hand, a product promotion is advertising a specific product to customers. For example, a beer company would be doing a institutional promotion by advertising to drink responsibly, and that is showing that the company cares about people rather than building up their products. An example for a product promotion is Apple sending out advertisements about their new iPhone X, and the advertisement is specifically talking about that product and nothing else.
The advantage and disadvantage of promotion:
The advantages of promoting:
- Increases sales
- Increases value
- Increases Business
The disadvantages of promoting:
- Increase price
- Not trusted promotion
- Doubtful reasonings
- Increase in low quality advertisements
The advantages of promotion is that you would get more people to buy a product and go to a companies business, and spend money on them. This is good because it will bring up the sales, which would bring the value of the company up, and will increase the business it gets.
The disadvantages of promotion is that you would need to increase the prices of a product so you can pay back the money that you used to advertise it. Promotions most of the time aren't trustworthy, a promotion could say that a phone is very durable and can survive a drop of 20 ft, but in reality, it really doesn't. Promotions could also have doubtful reasonings, for example, a toothpaste promotion could have a fake dentist in the advertisement to say how "good" thee toothpaste is. After the more promotions get released, the lower the quality of it gets. A business wants to save money, so they wouldn't spend a lot of money of a promotion of advertisement.
