Advertising plays a major role in the business world. Why do companies spend millions of Naira in advertising? What benefits are there in advertising? SD Motions share some of advertising's major advantages.
Introduction of New Products
When a company launches a new product, advertising helps to promote the product and create awareness about it. It would take a lot of time and invariably a lot of money to get people's attention to a new product without advertising it.
Increase in Sales
Advertising increases awareness of a product and leads to increase in sales. When sales increase, the result is an increase in production. Increased production usually lowers the cost per unit of production. So, in the long run, advertising boosts sales and lowers production costs.
Makes a Lasting Impression
A creative advert can have a lasting impression on people. Some people can still remember some television advertising they saw as kids well into their adulthood. One way to create this type of impression is through repeated advertising. Some marketing books prescribe advertising a product about 20 times for it to be able to reach the potential customer's subconscious mind. Advertising using a consistent medium and format will achieve this and make customers to readily purchase your product.
Complements the Company's Brand
Advertising your company's products regularly makes it easily relatable to your customers. Many Nigerians would easily identify a yellow shopping cart on a white background as a Jumia.com logo. That is the kind of popularity advertising gives to a company's brand. That constant reminder makes customers to subconsciously relate with your company on a more personal level. Now, it won't be a hard choice if such customers are asked to pick a product or service from you or from other unpopular brands.
Provides Options for Customers
By giving the selling point of each product, advertisers enable the public to make informed choices based on individual preferences. For instance, FedEx had a slogan "When it Absolutely, Positively has to be there Overnight" This slogan often used in their adverts was a constant reminder of their ability to deliver fast, efficient service when it mattered. The customer can now make a choice based on the urgency of the delivery. Another example is in the Fast Moving Consumer Goods industry. A product manufacturer can place an advert that emphasizes the quality and effectiveness of its product while another might focus on the affordability of its products. The consumer is then allowed to make an informed choice.
Advertising Promotes Competition
Companies also advertise so as to remain competitive in the market. When the product of a company saturates the market, it loses customers to newer companies. For the company to regain its market share, advertising is necessary. Some companies however have a regular advertising schedule, and advertise even when sales are just fine. Competitiveness also benefits customers because it ensures that all the competing businesses up their game, providing better customer service and product quality.
Advertising is a multi-billion dollar industry employing thousands worldwide. It provides employment for the market researchers, the designers and many other professionals.
Reduced Cost of Running the Media
Media houses are financed through adverts. They advertise products and services, charge for their advertising service and as such remain in business. Can you imagine a world without the television networks, radio stations, newspapers or the Internet? Then you can fully understand the powerful role advertising plays in our lives.
Keisha Diamond PR & Communications