v Why advertising? How does the cost of a product change? | Luigi Nervo

pubblicità prodottiAn advertised product costs more than one that did not use an advertising campaign to promote. So why to advertise? There are many to wonder why they have to pay a product more only to cover the investment in marketing undertaken by the company, while they can find products with similar quality at the lowest prices But at this point the question is another: without advertising and marketing, consumers are able to find products? So what are the advantages of an advertising campaign? In fairness to readers, I tell that I deal with advertising and the one that follows will be an answer maybe by one side, but argued according to objective criteria.

The advertising communicates the product and the brand. Let’s say we have two items for sale, A and B. Both have the same qualities. A cost much more than B because it did an advertising campaign on the Internet, radio and TV and in magazines and newspapers. B’s marketing plan instead provides only the distribution to retailers and the construction of a packaging made by the grandson of the owner who dabbles in Photoshop as a hobby.

The consumer see on the shelf A and B. He knows everything about A because the advertising and the communication have explained what it is, what it does and what are its main qualities. It has been bombarded with messages that tell more about the product and reactivate his latent desires and therefore is more likely to buy it because, if the advertising has been effective, he trusts in it. B instead is an unknown product, one among many. Maybe worth as much as A, but how does the consumer know that if anyone told him?

For this reason, B have to compete against C which, in theory, have lower qualities. As a paradox, if C has invested little on the quality of the product and a lot on advertising, the cost may be equal to B and it can sell more because its few winning features has been comuicated unlike what did the competitor.

The communication and the advertising are used to communicate the winning qualities of a product.The cost is higher because the company needs to increase the marketing budget, but this proves to be an investment that generates profits. Do not advertise means to do a lot of work for nothing because you reduce the potential sales of a product.

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