Advertising Effectiveness in the Business Environment

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Introduction

The business environment has become increasingly competitive as a result of the increased number of organizations venturing into business, as well as the advancement of technology that has been so rapid for the last couple of decades. As a result, organizations have been finding ways they can increase their performance. One such way would be increase the level of sales.

This would involve proper marketing of the goods and services of the organization. There are a number of ways that are adopted in marketing. They can be referred to as the strategies of marketing. One such strategy is advertising. It is one of the most famous ways of marketing and has been used by business organizations for a relatively long period compared to other strategies.

Advertising can be defined as a strategy of marketing communication whereby the marketers persuade and encourage people to buy the goods and services of an organization. The aim is to create an urge to buy, which did not exist initially. In other words, the marketer aims at manipulating the audience so that they can buy the goods and services or influence consumer behavior in regard to a commercial offering (Landa 23).

It should be noted that advertisement can be done for other reasons other than influencing people to buy. For instance, advertising could be done to influence people to take a particular action. It could be a political or an ideological form of advertisement.

An organization needs to ensure that it implements effective strategies to be adopted in the advertisement to make it effective. With the high level of competition in the business world, organizations need to perfect their advertisement. This essay focuses on ways through which advertising can be made effective.

Advertising effectiveness

The advertisement industry is one that is faced with a lot of challenges. It is a very important industry in the business world. The advertisement needs to be well planned for it to be effective. As been mentioned earlier, advertisement has the ability to improve the performance of an organization.

However, for it to be effective, the marketing manager needs to identify what works and what does not work in the advertisement campaign. It should be noted that this is an industry that has a low-quality assurance due to its nature. In other words, it is not easy to measure the exact effectiveness of the advertisement campaign.

Purposes of advertising

There are a number of reasons why an organization needs to do advertisement. Advertising is an activity that organizations need to take seriously because of its implications on business performance. The advertisement has a direct effect on the sales and profitability of the organization. The prime reason why business organizations are created is to make profits.

Therefore, anything that can increase the profitability will always be welcome to any business. It can be said that one of the reasons why advertising is done is to increase the level of sales in the organization by influencing more customers to buy. An increase in sales will then lead to an increase in profitability. The company will need to convince the customers that its products and services are the best in the market (Mohan 227).

The company should have facts about the product to easily convince the customer. However, it is imperative to note that an increase in sales will only have a positive effect on the profits if the cost of advertising is lower than the marginal increment in sales as a result of advertising. In other words, advertising will only be effective if it is done at an economical cost.

The other reason why advertising is done is to deliver the message regarding a product or a service to the customer. When a company starts producing goods or services, there are high chances that the potential customers may not know about them or the company, especially if it is a new company.

This awareness is created through advertising. This purpose is only effective if the company is new or when an existing company starts producing a new product or offering a new service.

Enhancing the image of the company could be another reason why a company should do advertising. The image of a company is considered as a very significant competitive tool as it gives the company a very strong competitive edge. Advertising helps in creating company royalty to the customers. Advertising should preach the good gospel about the company. It can tell the activities of the company, including the CSR activities.

This purpose of advertisement, if well executed, will make the activity effective to the company as it will create brand loyalty and a good company image, thereby giving the business a competitive advantage (Mohan 229). Demonstrating how the products are used is another reason why a company needs to do advertising.

Customers are not likely to buy a product they are not able to use or one they do not know its use. It is, therefore, the duty of the company to show the customers how the product is used. This goes a long way in creating an urge to buy. In case it is a product that the customers do not know its use, the advert should create an urge to buy by explaining or demonstrating how the use of the product to the customers.

There should be a salespersons in every company. Their work is to market the product or services of the company. The salespeople need back up to make their messages stronger and more convincing.

This can be provided through advertising. When a company advertises a product, the customer probably sees the advert and gets an idea about the product before the salesperson reaches them. By the time the salesperson comes, it becomes easier for the customer to be convinced because the message by the salesperson is now made stronger by the advert.

Finally, advertising is done to attract new customers to the organization, as well as maintain the existing ones. A company will only be sure of increasing its sales if new customers buy its products, while the existing ones still remain (Alozie 24). Achieving this purpose requires the advertisement to be effective to the company.

Types of advertising

An organization needs to choose well the type of advertisement to be used to ensure that the advertisement activity is effective. This will depend on the products or services it deals with and its major target customers. Once the target customers are identified, it becomes easier to choose the type of advertisement that should be used. Different target customers can be reached through different media.

However, it should be noted that any type of advertisement or any other medium can be used for advertisement. The difference will be the effectiveness of the advertisement for the specific businesses and products, as well as to specific customers. Basically, advertisement is supposed to create awareness about a certain product to the target customers.

This is why the two factors (product and target customers) need to be taken into consideration when selecting the type of advertisement to use. The following are some of the types of advertisement that an organization can choose from.

Television advertisement

This is the kind of advertising whereby adverts are presented on national television. Television has been considered as one of the most effective types of advertisement for a long period of time because the advert can reach a wide range of audience. A lot of people in all age groups watch TV, thus any organization advertising via this media is able to reach a significant percentage of its target customers.

Television adverts can be designed such that they are highly persuasive and are able to convince a high number of customers. This type of advertisement combines visual and audio messages, making it more appealing. However, television advertisement is expensive compared to other means (Batra, Myers, and Aaker 34). This is a limitation to this type of advertisement.

Although TV advertisement has the ability to reach many people, some organizations may not be able to use it due to its cost implications. Before a business organization chooses television as its means of advertising, it should carry out a cost-benefit analysis. The company should ensure that the marginal revenue generated after the advert is higher compared to the cost incurred in airing the advert.

Infomercials

This is a type of advertising that is closely related to the television advertisement. It is where a commercial is presented in television or in any other video format such that it has information regarding the product and the presentation is prolonged for a couple of minutes. The aim is to create an immediate urge for buying that the customer had not planned for.

The customer will immediately buy through the website given or a toll- free phone number (Batra, Myers, and Aaker 34). The word infomercial is derived from the words information and commercial. This is a means of advertisement that has the ability to reach a large number of customers and its effectiveness can be realized immediately during or after the advert. Infomercials are expensive and not many organizations are able to use it.

Radio advertising

This is the form of advertisement whereby the information regarding the goods or the services is relayed through the radio. The advertising company normally buys airtime from the radio station to air its adverts. Radio advertising is a type of advert that has the ability to reach a high number of people as radios are available in many households. It is relatively cheaper compared to TV and infomercials.

It is important to note that radio is not only accessible on air, but is also available online as a result of the advancing technology. Radio advertisement is the form of advertisement that can arguably reach the largest number of people at a time. Despite reaching many people and being relatively cheaper, radio adverts can only be available in sound as there are no visuals.

Thus it may not be as effective as the use of TV (Batra, Myers, and Aaker 35). However, smaller companies can use the radio because the financial implications are not too severe on them. It can, therefore, be said that a radio advertisement is the best for smaller companies because they can reach many people and they do not incur a lot of expenses compared to the use of TV.

Online advertising

This is the form of advertising that is done through the Internet. It is a modern way of advertising that has emerged with the emergence of technology and the growth of globalization and the international market. The reason for its increased popularity in the international scene is because the Internet can be accessed anywhere in the world, and multinational organizations can easily advertise their goods and services.

Online advertising is among the cheapest modes of advertisement and can reach many people at the same time. In recent years, many people have access to the Internet, and they can see the adverts online.

Online advertising may appear in the form of search engine result pages, social networking advertising, such as Facebook, Twitter, and Yahoo, among others, online classified advertising, e-mail marketing, rich media, and advertising networks, among others. Many organizations over recent years have turned to this form of advertising due to its effectiveness and economy (Landa 124).

It should be noted that most of the people who use the Internet are the middle-aged and the young. Thus an organization whose target customers is this group of individuals should use internet marketing. The online advertisement may include both visual and sound, as well as a description that can be read by the audience.

Press advertising

This is the kind of advertisement that is done through a printed medium. It could be through the newspapers, magazines, business journals, and posters, among others. The one major limitation of this kind of advertisement is the fact that it is not able to reach as many people compared to the previously described means as not many people buy newspapers and magazines. Newspaper adverts do not have sound (Frith and Mueller 54).

However, they may have pictures and written descriptions. One of the most common forms of press advertising is classified adverts. This is where individuals and companies advertising their goods and services pay for a small section in the newspaper where they make their adverts.

The companies buy a small, narrowly targeted advert for a given amount of money and make their adverts. This form of advertisement could be used to target audience who are employed, high and middle-income earners, and the elite. These are mostly people who buy newspapers and magazines.

Street advertising

This is the kind of advertising that is closely related to promotions. It is outdoor advertising whereby goods are displayed on the streets. In the case of services, advertisers will explain them to the audience on the streets. It is a cheap and highly effective means of advertisement.

The reason why street advertising is highly effective is the fact that the marketer is able to interact directly with the audience. The audiences can ask questions and the marketer, on the other hand, is able to convince the audience and get direct feedback at the same time.

Billboard advertising

This is where adverts are displayed on large structures that are then erected in public areas so that people can see and read as they pass. Billboards are normally erected along main roads or areas that have a large population, like in major cities and towns.

They may also be located in stadiums, shopping malls, as well as office buildings (Mahon 67). This type of advert may not reach as many people like the radio, TV, and newspaper. Its effectiveness may also not be easy to measure or assess. However, the advert can reach any group of people because the billboard is in an open place where everyone can see.

Celebrity branding

This is a form of advertisement whereby the organization uses the power that celebrities have in influencing people to buy their goods and services (Tuten 20). The fame and popularity by celebrities are used so that the organization can have its goods and services recognized. For instance, in case the company wants to advertise certain cloth wear, the celebrity will wear it and then be recognized by a large population.

The celebrity may also be involved in the advertisement campaigns on TV, on radio, on the Internet, or even on the streets. This kind of advertisement could be very effective, especially in situations where the target customers are young people. It is a form of advertising that has been very popular in recent years.

However, celebrity advertising is risky because if the celebrity makes a mistake, then it might have a detrimental effect on the company’s image and brand.

Other forms of advertisement include product adverting and institutional advertising. The former refers to the form of advertisement that is meant to stimulate an urge to buy the product. It could also fall in any of the above-described types of advertisement.

Institutional advertisement, on the other hand, is the kind of advertisement whereby the marketer aims at creating a good image of the company, organization, or the institution in question.

Approaches to advertisement

For an advertisement to be effective, the company needs to take the best and the most potentially effective approach to the process. The company should, therefore, invest time in trying to figure out the best approach to be used. There are traditional approaches that have been used in advertising over the years and the modern approaches that are being used today. The traditional ways of advertisement are being overtaken by modern approaches at a high rate.

For instance, internet advertising is becoming more common and more effective compared to the traditional media of advertising, such as TV, radio, or newspaper. It is cheaper compared to any of the traditional approaches. At the same time, it is highly effective as it can reach many people. TV advertising is highly convincing because it has the ability to be accompanied by visual, sound, and writings (Hansen and Christensen 129).

Digital signage is also a modern approach that is able to reach a large audience and is relatively cheap. In fact, digital signage is able to reach the target customers only as the technological advancements can be designed such that the message controlled to only be delivered to a certain group of customers.

Among the approaches that the company may use to make its advertising more effective could include niche marketing. To niche is to divide the market into small segments based on the various needs of the customers. A niche market is a market that satisfies the specific needs of specific customers. If the company takes the niche marketing approach in its advertisement, then it has to choose means of advertisement that will reach the target customers.

Niche advertising is an approach to an advertisement that can be highly effective, especially where the company deals with highly differentiated goods. Although it might be challenging to choose a type of advertising that will only reach the target customers, the company can choose a type of advertising that is able to reach a majority of the customers.

Media approach is also an approach that can be highly effective in advertising. The company will need to identify its target customers and then select the media that is likely to reach most of the customers. The Internet has brought many advertising opportunities and has made the advertising industry become more effective because reduces the costs and is able to reach and influence many people to buy.

Advertising through the Internet can be done by e-mail, popup ads, banner, advergaming, flash, and banner, among others. Almost any product can be advertised on the Internet as many people today are able to access the internet through their PCs or mobile phones. The new technology may include other approaches other than the Internet (Tuten 12). For instance, there are means such as digital video recorders and TV apps, among others.

Global advertising is another approach that can be taken by an organization. This is an approach that is very effective for multinational organizations. It should be noted that the increase in globalization has led to increased international marketing and organizations are selling and marketing their products and services beyond their national boundaries. The reason for this is to increase their consumer base and make more profits (Joshi 14).

When a company chooses this approach, it should be able to balance between four competing business objectives, namely economies of scale, brand building, implementation speed, and maximization of local effectiveness. These are objectives that can lead to failure of the global advertising approach if not balanced.

A company needs to carry out good research before going for the global advertising approach. It should be noted that this approach is expensive as it targets a large geographical area and a large audience, but it can be highly effective if well implemented.

Conclusion

Advertising is one of the most effective ways that an organization can adapt to increase its sales. However, advertising will only be effective if done in the correct way. In other words, the correct procedures should be followed in choosing a means of advertising. The organization should also select the correct media for various target customers.

Here, the company can choose to use traditional media like TV and radio, modern media like the Internet, or a combination of traditional and contemporary media. Advertising should be done at the minimum possible costs. This will increase its effectiveness as the major aim is to increase profits. Finally, the organization should take time to select the best approach that can be effective.

Works Cited

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Batra, Rajeev, John G. Myers, and David A. Aaker. Advertising Management. New Delhi: Pearson, 2009. Print.

Frith, Katherine T, and Barbara Mueller. Advertising and Societies: Global Issues. New York, NY: Peter Lang, 2010. Print.

Hansen, Flemming, and Lars B. Christensen. Branding and Advertising. Denmark: Copenhagen Business School Press, 2004. Print.

Joshi, Manjunath V. Theories and Approaches of Environmental Economics. New Delhi: Atlantic Publishers, 2001. Print.

Landa, Robin. Advertising by Design: Generating and Designing Creative Ideas across Media. Hoboken, NJ: John Wiley & Sons, 2010. Print.

Mahon, Nik. Art Direction. Lausanne, Switzerland: AVA Academia, 2010. Print.

Mohan, Manendra. Advertising Management: Concepts and Cases. New Delhi: Tata McGraw-Hill, 1989. Print

Tuten, Tracy L. Advertising 2.0: Social Media Marketing in a Web 2.0 World. Westport, CT: Praeger, 2008. Print.

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