Understanding and quantifying the benefits of advertising is a problem as old as advertising itself. The problem stems from the many purposes advertising serves: building awareness of products, creating brand equity and generating sales. Each of these objectives is not easily measured or related to the advertising that may have affected it.
In addition, more and more companies are using IMC to reach their desired audiences, layering broadcast advertising over direct response campaigns or combining online with offline campaigns. All of this is making it harder to separate out the individual influences of each advertising effort.
Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization.
Effect of advertising on marketing and business performance:
Most companies are no longer satisfied relying solely on traditional methods of measuring advertising effectiveness, namely awareness surveys and tracking studies, and want more precise and concrete evidence that their marketing investments are paying off.
The difficulty is that measuring these effects may involve tracing advertising's stimulus through a behavioral chain of events that eventually may culminate in a sale long after the advertising has been delivered.
Advertising and marketing performance:
• Advertising and sales revenue: advertising helps increasing sales volume thus sales revenue through: o easy introduction of products into the markets o Easy sale of the products is possible since consumers are aware of the product and its quality
• Advertising and marketing share: advertising helps increasing market share by: o Creating an image and reputation not only of the product but also of the producer which attracts Investors in addition to customers.
• Advertising and customer relationship: advertising helps build customer relationship through: o Establishing direct contact between