The American Marketing Association defines as" Advertising is defined as any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor."
The primary and the most important question which always used to be at the back of my mind (I hope many of you also have the same doubt) as to whether a company can avoid advertisement and instead pass on the benefits to the consumers?
After series of discussion with my professors, friends, colleagues etc, I have come to the following conclusions. I have learned that the best way of learning is to have healthy discussion with others and try and evaluate each point and increase your understanding on the same.
Yes, a company would like to pass on the price advantage to its consumers but it does not solve the company's problem. Every company wants to enhance its customer base, inorder to increase it people should be aware that a XYZ company does exist. If the new consumers don't know about the company, it becomes irrelevant for the company to provide such a cut as it is loosing money which it could have charged otherwise to its loyal customers.
'Human Psychology' or Consumer Behaviour in marketing jargon plays a crucial role. When a company reduces it prices some think that the quality of the company might be degrading which can be detrimental to the health of the company. On the other hand, a company increasing its prices might deflunct some customers but they are mostly assured about the quality of the product.
'Human Psychology' or Consumer Behaviour in marketing jargon plays a crucial role. When a company reduces it prices some think that the quality of the company might be degrading which can be detrimental to the health of the company. On the other hand, a company increasing its prices might deflunct some customers but they are mostly assured about the quality of the product.
A Customer is the most important visitor on our premises.He is not dependent on us. We are dependent on him.He is not an interruption on our work.He is the purpose of it. He is not an outsider on our business. He is the part of it.We are not doing him a favour by serving him.He is doing us a favour by giving us an opportunity to do so.
-Mahatma Gandhi
Also, even though the ultimte aim of the company is to increase sales, an Ad may not be prepared having sales as the primary motive. e.g. If tomorrow XYZ wants to enter the market of consumer goods then it has to first make the consumers aware that there exists an XYZ Organisation in the consuer goods category. Sales may show an improvement after a year because it is difficult to quantify the time required from converting a advertisement into sales for the company.
The company might want to be in the mind of the consumers or what we call as a recall in marketing jargons, this is mainly done by FMCG goods company which show their ads repetitively till it gets registered in the mind of the consumers.
All said, the amount a company invests depend upon the field in which it operates, its competitors, the shelf life of the product etc.
Make Ads. as if no wants to read them; because no one does. People put protective shield around themselves and advertising.
To break through, make one point as strong, forceful, penetrating as possible.
The fakirs of India can fall asleep on a bed of nails with many points. Make ads. with many points and none will penetrate. Make one point and watch it penetrate.
-Stavros Cosmolulos
