Relationship Between Sales and Advertising

2706 Words Sep 23rd, 2012 11 Pages
Table of Contents

1. INTRODUCTION 1 2. RELATIONSHIP BETWEEN SALES AND ADVERTISING 2 3. MEASUREMENTS TO EVALUATE ADVERTISING EFFECTIVENESS 7 4. CONCLUSION 9 5. REFERENCES 9

1. INTRODUCTION

Today, advertising appears everywhere; we see and hear a lot of advertisements on TV, newspapers, magazines, internet, billboards, public transports and so on. The more popular advertising is, the more important role of advertising in business is reinforced. The main aim of advertising is to build customer’s attention to a brand or product, then may lead to brand awareness, brand loyalty or increasing sales volume (Corkindale, 1983). Although the role of advertising is undeniable, the effectiveness of advertising is still hard to measure.
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Thus sales is not the only way to measure advertising effectiveness.
Table 2:

Source: Marquardt & Murdock (1984)
Table 3:

Source: Marquardt & Murdock (1984)
Although agree with Marquardt and Murdock that the relationship between sales and advertising does exist, Corkindale (1983) believes that advertising should not be measured by sales result because people tend not to buy or to do things they do not like; thus measuring sales in apparent relation to an advertising campaign just indicates how much people like the product, it does not tell how much of their liking of the product is due to the advertising, and whether those people who did not buy did not like the advertising. Indeed, for the majority of cases, advertising is just one of many necessary adjuncts to the consummation of a sale by a customer. There are exceptions where advertising is the prime motivator and contributor to the purchase act; for instance, direct response and some new products’ advertising. Over a short period of time, for well established products, advertising is used in a supportive role in marketing. The bulk of custom comes from regular, and heavy, purchasers of products and services; they are encouraged by advertising. The new purchasers, won from other brands or even brought into the market for the first time, are the relative exceptions. Hence, advertising is mostly expected to support the existing sales level and make small