Saturday, 22 September 2012

WHY SHOULD A COMPANY LIKE COCA COLA CONTINUE TO ADVERTISE?


George E. Belch & Michael A. Belch define advertising as any paid form of non-personal presentation and promoting of ideas, goods and services through the mass media with an identifiable sponsor.
The place of advertising in marketing cannot be under estimated since of all the marketing mix; product, price, place and promotion, advertising plays an important function in the promotion mix. It is the communication tool usually adopted by marketing to reach out to its targeted audience especially those institutions targeting mass consumers.
Promotion here refers to the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
According to the Business Dictionary continuous advertising is a marketing strategy in which the consumers of goods or services are continuously reminded of it even during periods its sales are insignificant or unlikely.
With this in mind, it will be unwise for companies especially well established ones with well known brand names like Coca cola with many years of experience to seize advertising because continuous advertising comes with a lot of advantages to the company.
Among them include:
Increase awareness. There are many more individuals out there that the company needs to reach out to increase sales. Besides competition is getting keener by the day with new competing products being introduced into the market, hence need to keep reminding consumers of the existence of the coca cola brands of products.
Secondly, continuous advertising is important to introduce new products. Coca cola has more than one product and continue to add more to its range of products. It is therefore reasonable to get the public informed any time the company introduces new products. Advertising is therefore designed to suit and appeal to the targeted consumers.
Furthermore, it is used to announce a change. Continuous advertising is important to provide information to customers about changes in quality of existing products designed to respond better to their needs and for which reason they should even purchase the product more.
Another reason is to alter the attitudes of people. An effectual advertisement results in a swift change in the attitudes and habits of the people.
Take care of customers. Advertising takes care of customers. It helps in holding on to the loyal customer, decreasing the number of lost customers and enlisting new customers. Thus the overall effect of advertising is increase in the number of customers that will gradually become loyal to the product.
It also worth noting that, every responsible company should be interested in the welfare of its customers and must put in measures to protect consumers. Intense competition and quest for money has led introduction of imitation of products and the worse hit are famous brands like Coca-Cola hence consumers who trust the Coca-Cola brand for example is obliged to educate its consumers of the features that help them to differentiate quality from fake products.
Advertising is also used to provide information on other undertakings the company is engaged in. Coca-Cola is without doubt a big brand with several branches across the world. Their publics therefore expect them to also do well with their social responsibilities as a way of giving back to society. This also attracts a lot of customers to them hence they need to inform the public about it through advertisement and to attract beneficiaries. Example of this is the involvement of MTN, a communication provider in Ghana in its “21 days of Yellow” where they assist schools with classroom blocks.
These reasons provided above among others therefore provide a strong case for companies especially those with strong financial base to make budget for continuous advertising though the cost involved may be huge.


Reference
George E. Belch & Michael A. Belch, 8th Edition, Advertising and Promotion: An Integrated Marketing Communications Perspective.
http://inventors.about.com/od/advertisingmedia/a/effective_marke.htm


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