New Approaches to Advertising Essay Example | Topics and Well Written Essays - 2250 words

New Approaches to Advertising - Essay Example To be sure, consumers and businesses are using other forms of communication to gain the information that was once formally provided by advertising. Furthermore, globalization in the marketplace has not only altered the way the world does business, but effectively altered the way in which business communicate with their more globally aware consumers. To understand these shifts in the paradigm for advertising, one must first understand how advertising works in the first place, and apply this understanding of the industry to the shift in the way that it is working today.Advertising is unlike the direct communication between two people which involves a give and take experience.It is a one way exchange that is impersonal in format. People can selectively notice or avoid, accept or reject, remember or forget the experience and therefore confuse and bewilder the best of advertising plans. Advertising has always been a seemingly inescapable part of western life. It is the ultimate tool that corporations use to communicate to consumers.Through television, radio, newspapers, billboards, and the internet, corporations have benefited from advertising through increased sales.The effects of advertising have appreciably increased the quality of life of consumers.Finally, the communication potential of advertising has made it essential to the function and well-being of today's market. Advertising is an effective function of the economy that is an asset to both corporations and consumers. Corporations have made every effort to submerge consumers in their advertising since the beginning of modern civilization. They money that corporations are willing to spend delivering ads has doubled since 1976, and continues to grow by over 50% every ten years (Olson & Reynolds, 2001). Corporations and businesses are willing to devote such an enormous investment of money simply due to the fact that if done properly, advertising will more than pay for itself. Although most market experts agree that advertising is an exercise in communication and not sales generation, it is without a doubt that the ultimate goal of producing the ad is to increases sales and profits, either directly or otherwise. Throughout the years, advertising has proven effective in attracting consumers and increasing sales directly. This is achieved is two main ways. First, advertising allows businesses a chance to communicate to the consumer in order to persuade and offer reasons as to why their product would be desirable. This raises consumer interest in the product and can eventually result in increased sales. Next, advertising can be used to raise consumer awareness about special events, promotions, or discounts available or to simply remind prospective customers that the business is open and ready to offer goods and services. Advertising effects businesses by helping to build consumer confidence in an advertiser's product. People have been known to buy brands that they know of and in which they have confidence. Advertising helps to achieve this by connecting corporations and their products to consumers. This process is called "branding". Ads can help the corporation make their product known, and to create an image or reputation for the product through the content of the ad. "At Volvic 10 per cent of the buyersof the buyers of this brand of mineral water are regular and loyal and represent 50 per cent of the sales. The reputation of the brand is a source of demand and lasting attractiveness, the image of superior quality and added value justifies a premium price," (Kapferer, 1997). Advertising of this sort