Advertising and Its Effects on Consumer Behavior and Business

Introduction

Advertising is the art of making a product known to potential buyers. It entails the use of various media and other means to relay messages to consumers. Through advertisements, buyers learn not only about product availability but also about pricing and product usability. Advertising is a commercial activity, and media houses generate most of their revenue from it (Batra, 2009). People and companies pay to gain coverage on these media platforms in order to convince the public to purchase goods and services. This paper discusses the various aspects of advertising and its effects on all concerned stakeholders.

Forms of Advertisements

The most commonly used forms of advertisements include both electronic and print media. Television and radio advertisements have been the most common for a long time (Murray, et al., 2004). Both customize the content of adverts to reach specific targeted audiences. Advertisements made through these means are important and appropriate when marketing products requiring detailed descriptions. When advertising through these channels, only those people within range can access the adverts. Therefore, the best adverts are timed and released when people are suspected to have ample viewing time, typically during evenings in what is known as prime time. In terms of billing, these peak times cost significantly more than other hours. Marketing and product promotion cannot be attained without adverts. Print media relay their adverts effectively, though not in real time, and the content is not live as in electronic media. Media has a way of boosting sales through adverts (Ferrier & Fleming, 2014).

Apart from electronic and print media, other forms of advertising include billboards, fliers, and gifts. Billboards are large boards placed on major streets in towns and highways so that many people can see them. This form of advertising is appropriate for advertising new products in the market. Since they present products for view for a very long time, they are appropriate for making maximum impact on potential consumers (Olney, Holbrook, & Batra, 1991). Fliers are small leaflets circulated with advertising messages intended to promote specific products. In this case, adverts are only suitable for short-term events. Together with free goods, fliers are most suitable when launching a new product, since they can cause maximum impact instantly (Batra, 2009).

Technology has revolutionized the advertisement scene. Social media is the latest addition to the field of advertising and is a product of technology. It uses online platforms to make messages known worldwide. Social media is an internet-based platform with a variety of options where people can post communications in both verbal and textual manner (Ferrier & Fleming, 2014). While people tend to use social media mainly for socialization, it can also serve as official platforms for companies. Beyond social media, other technology-supported platforms include blogs and websites.

Blogs enable people to share customized information that can promote company products. Unlike social media options, blogs consist of detailed information that can indicate the nature of the company. Blogs act as identities for companies since they portray all the features the public must know. The focus in blogs is on a particular company and the products and services it produces. Having comprehensive company information in the system makes it easier for clients to trace products and other services being offered. Websites are more official. They carry the identity of the company and act as avenues where transactions can take place. Most advanced companies have set up transaction platforms through their websites (Murray, et al., 2004).

Effects of Advertisements

In the case of multinationals, business takes place worldwide through websites. In these websites, advertisements for products being sold are made through open chat sections. The advantage of advertising through websites relates to reduced costs. It costs considerably less to use this avenue since the website belongs to the company, eliminating hiring costs. The need for websites was necessitated by the desire for interaction between clients and businesses (Batra, 2009).

Advertisements have the effect of increasing sales for any product. Products that are advertised become known to potential clients, which increases their chance of being purchased. Since adverts detail all product information, they convince consumers to buy and even try new goods and services they have never seen previously. The psychological effect of adverts on consumer behavior cannot be ignored or downplayed. Sometimes, advertising predisposes clients toward impulse buying simply because the description provided appears irresistible and satisfies a particular need. The other effect of advertisements is that they lead to job creation. Companies specialized specifically in advertising have emerged and make revenue by advertising goods for manufacturers and other firms (Olney, Holbrook, & Batra, 1991). Media stations such as television stations also make the largest percentage of their revenue through paid adverts. Endorsements are also a major part of advertising, where celebrities offer themselves to advertise brands (Ferrier & Fleming, 2014). This attracts revenue for them as well. Suppliers of billboards and other advertisement equipment all derive income from the advertising field.

Conclusion

Other effects of advertising include informing clients of product features, including price and quality information. For technical products, adverts explain how they are used, which is important for new users (Murray, et al., 2004).

Any act meant to make a product well known serves as an advertisement. These include all forms of publicity. In the case of major companies, billboards and televised adverts are used. For smaller companies, advertisements are made using simpler forms such as fliers and social media. The social media platform has enabled small companies that were initially financially constrained to advertise their products cost-effectively. In recent times, advertisements have taken more localized forms. Companies are trying to tailor-make adverts in a more personalized manner. For instance, the Coca-Cola Company recently branded beverages with individual names. This makes consumers feel ownership of the products and enables them to enjoy the experience more while consuming. This is a psychological strategy designed to manipulate consumers to buy Coca-Cola drinks. Another feature of advertisements is that they are meant to appeal to consumer tastes. However, a general quality guarantee comes with adverts. Once a product is placed as an advertisement, there is an implied assurance that the product is of high quality. This leads to increased sales.