Advertising And Spending

7 Pages 1722 Words

Advertising and Spending

It is expected for companies to compete on a different scale with one another than just on price. A non-price competition must happen in the form of advertising if a profit is to be had. The necessity for firms and businesses to advertise their goods and services and how it affects consumer behavior will be discussed. This paper will illustrate the need for markets to advertise their products and how they are able to persuade consumers to react to these marketing schemes.
Lars Perner defines consumer behavior as, “The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.” Worldwide, Perner’s statement precisely describes the typical business considerations for producing and marketing a new good and/or service. Advertising is quintessential for businesses to compete on a non-price competition scale. It is a powerful method of attracting the consumer to their business to maximize gross profit. If a company is unsuccessful in attracting new consumers to their product then profit will remain the same and those resources that were used for advertising was wasted. Paper advertisements, television, billboards, and the Internet are some of the conventional methods of mass media that a business relies on to vie against their competitors and increase their gross profit.
When a company advertises, most often they are making the claim that their product is better than the rest of the competition. For example, Coca-Cola touts they are the number one soft drink maker compared to Pepsi Cola and the Ford Explorer SUV claims to be better and safer than the Chevy Blazer SUV in crash test highway safety ratings. When a company advertises, not only are they showing their product to the general public, they are also making a stea...