Advertising showcases products and services, seeking to persuade audiences to buy. It is a promotional tool that creates consumer awareness about a company’s products and services and drives business growth.
The Internet has revolutionized the advertising industry, expanding it from traditional forms such as broadcast and print media into the realm of social media. Businesses now face great competition in enhancing the influence of their advertising to create awareness, drive sales, maintain market share and establish brand identity.
Awareness Creation: The main purpose of advertising is to create awareness about a company's products or services. Advertisements inform customers of new offerings, reminds them of existing products and updates them on any modifications and changes that may increase their urge to buy. Consumer protection laws require businesses to refrain from false and misleading advertising. Therefore, even as businesses seek to convey information about their products and services, they need to be in compliance with the law to avoid legal jeopardy.
Sales Growth: Advertisements drive business sales growth because they create interest among consumers. Once consumers are aware of a company's products and services, they are more likely to go out and buy it, especially if the advertisement entices them to try it out and experience it for themselves. Through electronic commerce and social media, businesses now have greatly expanded reach and can literally transact with consumers in any part of the globe.
Market Segmentation: Businesses make market segmentation decisions depending on the impact of their advertising efforts on business financial results. A business can quantify and evaluate the financial impact of advertising efforts against the investment that was put in to develop the advertisements. On the basis of their findings, the business owners may decide to tailor their advertisements to reach a specific segment of the existing market or seek market penetration among a new consumer base. The objective is to direct advertisements towards the consumer base where there is the greatest possibility of returns on investment.
Brand Identity: Business advertising strategies and efforts help to establish brand identity among consumers in the market. Businesses that engage in impact advertising are more likely to firmly establish themselves in the market because they create a lasting psychological impact on the audience, giving them valuable entertainment or information and creating a positive association with their product.
In addition, businesses can establish a strong market position where, on the basis of their advertisements, they proceed to meet customer expectations through quality products and services that offer value for money.