Advertising is the process of promoting a business and/or products. It is through advertising that the general public is made aware of a product or business. Companies spend millions of dollars to advertise their products or promote their services.
In 2011 a total of more than $400 billion was spent in advertising. There are many ways of promoting a company or product. This depends on the amount of money that the company is willing to spend and the purpose of the product they make. So what are the reasons that necessitate businesses to spend huge amounts of money in advertising?
It is in advertising that companies respond to competitors. There is no other platform other than advertising that you can use to tell the public and buyers why your products are better than those of your competitors. Potential customers and clients will also use advertisements to judge the strengths and weaknesses of your competitors. You will then be able to make use of the weaknesses to surpass them in business. It is therefore good to follow their advertisements regularly.
Companies advertise to create and maintain a regular demand for their products. This is by reminding the consumers of your products that the products are still the best. You can also use advertisements to communicate changes made in the product or service that you offer. You may improve the brand of your product and this is what you need to communicate fast to avoid confusion. Companies can also suggest new uses of the product to maintain their consumption.
Companies also advertise to increase the demand of their products. For a company to grow in business the volume of its sales has to increase every year. Advertising the products they offer can greatly increase the volume of sales for companies. This is done by making commercials that attract more customers to increase the demand of the product.
It is good to advertise to create a good image of the company. Tell the public that the company is the best and that you care about them. This can be done by telling them how you are socially responsible when you advertise. They will feel that you are a part of the society and therefore make your company their favorite. This will greatly increase the company sales.
It is therefore important for companies to advertise their products to not only increase their profits but to maintain the name of the business.