Chapter 16, Problem 1LO

Summary Introduction

To discuss: The advertising effects on customers and market share.

An advertisement is an announcement made in public to promote their product or service through television ads, radio ads, and advertising campaigns.

Explanation of Solution

The effects of advertising on customers and market share is as follows:

Advertising is said to be impersonal, one-way communication regarding the organization or product that is paid for by a marketer. Promotion makes up a huge part of most brands budgets. Spending on promotion is divided into unmeasured and measured media. Usually, more amount is spend to advertise new brands than to advertise old brands. Brands with huge market shares use advertising mostly to uphold their share in the market.

Advertising affects the daily lives of the customer and their purchases. Though advertising could rarely change customer values and attitudes, it might change negative attitude of the customer into positive attitude towards the product. Finally, advertising could change the significance of a brand’s attributes to customer. By emphasizing various brand attributes, advertisers could change their appeal in response to customer changing in requirements would try to achieve benefit for competing brands.