Marketing and advertising is the most important section of any business. It is the main factor in deciding our business to grow slow or exponentially. A good advertisement can draw huge sales and increase company’s profit to a new level high. Usually, advertisement plays important role in getting a brand name well known worldwide. Online advertising and marketing is another growing trend as most traditional business have online presence to accommodate online market. In most cases, marketing and advertising used massively to get our products or services well known to larger crowds. Most of the production cost spent on marketing and advertising to assure better sales prospect and profit return. Most largest corporation used this method in order to gain huge profit in any product or services they support. Let’s get down to the list of reasons why most company willing to spend almost or more than half of their production cost to advertising or marketing channels:
1. Clearing Old Stocks
Having huge old stocks which is manufactured years ago in our warehouse is not good for any business. If the sales is going at traditional rate where the items in warehouse is moving slowly and there are no room for new product creation or storing, it may halt the production and growth of a business. Production line should work most of the time to give optimal benefit for all shareholders. To give way for new products in warehouse and shelves, old product must go out first. Usually, the company won’t introduce new product lines until they have enough space or hit certain sales target of their older version.
2. Meeting Target
Each company have their own sales target for a day, week or month. Failing to hit the target, will not be helpful for a company to grow positively. So, the company will held a huge advertising campaigns with better discount rates to help them hit target. Although, they will earn less on discounted products, new items will still be sold at original price. Retail businesses often gets peak visit and sales during weekends. With consistent discount offers from competitors, even famous brand company will struggle to do sales without any promotion or discounts. So, this is one of the way to help them meet sales target.
3. Earn More
More sales will directly contribute more earnings to the owner and shareholders. Nobody wants to run a loss business here. Having advertising promoting certain products may increase sales which will attract more investors to the company. With more efficient advertising and marketing campaigns, some could even skyrocket their earning graph to a total new level high each year providing the product or services at top quality.
4. Create Buzz
There is only one way for companies to create awareness of their product or services that used traditionally for years, that is advertising and marketing. If you want to introduce new product or services, no one would know about it until you run some advertising campaigns. A good example can be seen on new movie trailers and banners to promote up coming movies to cinemas. However, there are so many unique way to get this done. Thinking creatively can save us huge amount of money plus it may give greater impact towards the release of our new product or service. Creative in creating buzz is a talent and that does not comes at cheap price tag too. Make use of social medias to get quick buzz and guaranteed results following similar success by other companies.
5. Brand Name
Some companies willing to huge amount of money just to get their brand name on a F1 car. The actual figure could be jaw-dropping for such a small space of advert space on a F1 car. Getting our brand name on the side banner of English Premier League or World Cup soccer field could cost multi millions. This kind of advertising does not promote any new products but only create brand awareness. They want the world to know their existence.
There are five hidden benefits that most buyers doesn’t realize in traditional advertising. Each name, space, logo, color codes, design, etc can be monetize in your premise if it has good exposure. There are numerous numbers of companies have billions of budget in advertising and marketing campaign each year looking ways to spend their money. If you are creative, propose a unique advertising platform for your local companies to get great buzz. You may also get more orders and become famous soon enough with your creativity. Advertising and marketing fields consitently looking for fresh ideas and creative way of platform in sending their message to the public.