DECA Sports and Entertainment Marketing Practice Exam

What is the primary purpose of institutional advertising?

1. To increase sales of a specific product

2. To develop goodwill or a positive image

3. To promote a sales event or discount

4. To announce new product launches

The correct answer is: To develop goodwill or a positive image

The primary purpose of institutional advertising is to develop goodwill or a positive image for an organization or brand. This type of advertising focuses on promoting the overall reputation of a company rather than the specific features or benefits of individual products. It aims to create a favorable perception in the minds of consumers and other stakeholders, fostering trust and loyalty over time. By emphasizing the company's values, mission, and community involvement, institutional advertising helps to build long-term relationships with the audience. This is particularly important in competitive markets where consumers are more likely to choose brands that they perceive as ethical, responsible, or community-oriented. In contrast, other options such as increasing sales of a specific product, promoting a sales event, or announcing new product launches focus more on direct commercial objectives rather than establishing an overarching brand image. These strategies are transactional in nature, while institutional advertising is more about enhancing the company's overall presence in the marketplace.