Established Companies Such as Coca-Cola and Mcdonalds Do Not Need to Waste Profits on Advertising as They Already Have a Vast and Loyal Customer Base.

2046 Words Jan 21st, 2015 9 Pages
Established companies such as Coca-Cola and McDonalds do not need to waste profits on advertising as they already have a vast and loyal customer base.

Student ID: 0080379103
Student Name: Jing SUN

Word count: 1639

The role of advertising in the developments of brand image and brand extension in established companies.

Utilizing advertising in a most effective and efficient way is always a concern in most companies, as advertising requires a costly investment in both capital and human resources, which in return is expected to create positive outcomes. With a large volume of consumers and brand loyalties created in established, some argue that advertising can be merely a waste of money. While this idea addresses two major
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Transformational advertising, on the other hand, plays a significant role in symbolizing the social and emotional dimensions by using the brand (Meenaghan, 1995). The symbolic characteristics have long been discussed by empirical researchers (Belk, 1983; Sirgy, 1982; Lannon and Cooper, 1983, cited in Meenaghan 1995), suggesting that functions are not the only concern in making a brand-choice decision, but emotional and social experience may be created as well. The advertisements of some environmental friendly products can be good examples of transformational advertising. Consumers who perceive themselves being responsible in creating a better environment may be attracted by this type of advertising. This is because the advertisements of environmental products may focus on emphasizing the contributions that may be created by using green products. Transformational advertising links the brand to the consumers’ self-image (Johar and Joseph, 1995) and persuades them to buy the product naturally. These two types of advertising strategies are of significant importance in managing an established corporate through ways of enhancing brand image and facilitating brand extension.
For established companies, it is of vital importance to reinforce

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