How Advertising Works: What Do We Really Know?

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How does advertising work? Introduction Advertising is a very important tool in order to make sure a product will be sold and to make sure a company is earning money. It is also one of the most important tools in order to get customers to buy a product or want a service. Ineffective advertising can not only cost the company a lot of money but it can even have a negative influence on the image customers have on a product or brand. So how to set up an effective and positive advertisement is something that has a very high priority in every business. In order to create that positive advertising campaign you need to know what the do and don’ts are and which pitfalls need to be avoided. I consider it very important to know what advertising…show more content…
When the message is received and decoded by the receiver, the source needs evidence that the message is understood and had the effect that the company was aiming for; for example higher revenue or a better brand image. This evidence can be shown in the way of feedback. Because the receiver is giving feedback (sends a message) to the sender, their parts will be turned around and now it becomes important that the original sender interprets the feedback in a correct way. Advertising is, according to Schramm’s model a very inter-personal activity where social context and understanding of the audience is extremely important. (Egan, 2007) A company that, in my opinion, makes great use of this model is Coca Cola, they have several products with almost the same ingredients that have a different target audience. Because of the commercials and feeling they give the audience people buy the product. A strong and masculine man would not be seen with a Diet Coke but more likely with a Coke Zero (which is almost exactly the same product). Coca Cola measures the results of their campaigns by giving away lots of gifts and goodies. Entering numbers given under the cap of the bottle, gives the opportunity to receive those products. Because people love free stuff they go the website, give feedback and Coca Cola knows who the person was that bought the product and if that was the correct and targeted

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