The Influence of Advertising on Business

Advertising is a method of marketing communication that is used to encourage and persuade the target audience to buy products and services. It is a promotional tool that builds consumer awareness about the company's offering and stimulates business growth. The use of internet has transformed the advertising industry, growing the traditional forms of advertising such as print media and broadcast into the realm of social media platforms. Businesses are constantly enhancing the influence of their advertising and face immense competition in creating awareness, increasing sales, creating brand identity and sustaining market share. Create Awareness Advertising is all about creating awareness about the company's products and services. It can be used to inform the customers about the new offering, remind them about the company's existing offering, and update them on any modification that may increase their desire to purchase. By law, businesses should refrain from advertising anything that is false and misleads the consumer. Thus, even when companies communicate about their products and services, they need to abide by the law to avoid legal jeopardy. Sales Growth Successful advertising increases company sales as it stimulates interest among the consumers. Once the customers are aware about the company's products and services, it is more likely that they go out and purchase it. Particularly if the advertisement entices them to try it out and experience it for them. Businesses have now expanded their reach through the use of electronic commerce and social media so much that they can make transactions with customers all across the globe. Market Segmentation Often times businesses plan their market segmentation strategy based on the impact of their advertising efforts on company's financial outcomes. Companies evaluate and calculate the financial impact of their advertising efforts with the total amount of investment in developing the advertisement. Based on the result, business owners make decisions to tailor their advertisements to reach a particular segment of existing market or look for market penetration to add a new customer base. The basic advertising objective is to focus on the consumer segment where there is the highest possibility of return on investment. Brand Identity Advertising helps in establishing a brand identity for the company. Businesses that engage in impact advertising are more competent to establish themselves in the market because they create an enduring psychological impact on the target audience by providing them valuable information and creating a positive association with their product. Also, businesses can create a strong market position through advertising as they continue to meet customer expectations through quality products and services that offer value for money.