Friday, May 29, 2009

AWA - Issue 2

"All companies should invest heavilyin advertising because high-quality advertising can sell almost any product or service".
Today's competitive market demands massive advertising on the part of every business that intends to attract customers and stay alive.But it is wrong to assume that adverrtising alone helps the sales of a product or service.

On the positive side a lot of advertising can help companies newly launching a product.But in the case of an old product,its quality and the extent it meets the expectations of the customers are what determine the prodcut sales.For ex. when the Snuggie was launched last winter we heard about its cheap price and free offers on Tv,radio and everywhere.The omnipresent advertisements of Snuggie helped its sales in the beginning. But when people discovered the extra chanrges that came under the head of 'shipping' a wrong review of the product passed in the market and hence resulted in drastic reduction of its sales.

Another effect of concentrated investment in advertising alone is that it will raise the expectations of the customers. When accompanied by a lack of investment in product development such expectations will see failure. Thus,inspite of huge advertising,a company will see diminishing sales.

In addition to the above,excessive advertising can have negative effects as well.A recent survey showed that repeated advertising about a product propogates a neagative vibe about the product.The consumers interviewed in the survey expressed that repeated advertising of a product makes them feel insecure about its durability and quality. Hence they don't considering buying it at all.

As can be seen by the detailed analysis of the issue, carried above,advertising alone will not help sales of a product or service and in fact might turn out bad for business.

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