Importance of Advertising In Business

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READING COMPREHENSION 
Importance of Advertising in Business 
Businesses use advertising to accomplish varied goals, and companies 
place those ads in diverse media. Besides advertising products in 
traditional venues such as newspapers and general interest magazines, 
businesses advertise in media that reach specific markets. For example, a 
portable communications device is advertised on a social media site that 
reaches younger customers. Home furnishings and decor are advertised in a 
Home and Garden Show program guide. Effectively produced ads help to 
further business goals.
Product Introduction and Awareness
When a business introduces a new product, advertising provides a means to 
make a large market aware of the product. Ads often focus on the 
product's solution to a common problem, such as a new cell phone's touted 
ability to solve the "dropped call" problem. In a very visual example, 
ads for an anti-frizz hair treatment can show "before and after" 
photographs to illustrate the product's effectiveness.
Product Sale Events
Advertising provides an effective way to inform the market about 
limited-time product sale events. Sale-based ads can be generated by 
local retail outlets, or can originate from the product's national 
manufacturer. In many cases, the national manufacturer shares the cost of 
the ad with the local retailer. This type of advertising is called co-op 
advertising, and commonly uses manufacturer-supplied graphics and ad 
templates. The local retailer's name appears as the local product outlet.
Product Differentiation from Competitors
Businesses frequently use advertising to show how their product has more 
benefits, or is more effective, than similar competitors' products. In some 
cases, the retailer feels it's necessary to advertise because the 
competition is blanketing newspaper pages or television airwaves with its 
own ads. Unless other market retailers that aggressively highlight their own 
products, they are likely to be overlooked in the minds of consumers.
Product Breakthroughs and Advancements
Advertising is used to communicate dramatic product breakthroughs. In 
September 2003, "Advertising Age" depicted a long history of "soap wars" in 
which bar soap manufacturers promoted their respective products. In 1980, a 
product breakthrough occurred with the first liquid hand soap introduction. 
This refillable soap solved the problem of messy sink residue. This liquid 
soap product was purchased by a national brand, while competitors' liquid 
soap products also emerged.
Institutional Advertising to Promote a Good Image
When a business communicates information about its operations, or 
illustrates why its product is the best choice for consumers, the 
company uses institutional advertising. Sales expert Zig Ziglar 
notes that this type of advertising isn't really designed to 
increase sales, but is structured to promote a good image of the 
company or product. This perception will hopefully translate into 
future sales. Ziglar emphasizes that even if the consumer doesn't 
buy the product right now, the company will have kept its name in 
front of its consumer market.
QUESTIONS
1) Why do companies use advertising? 
2) What is the Ad main focus? 
3) What are some of the elements used to convince the consumer of 
making a purchase?
4) What is “co-op”? 
5) Do ads bother you, or do you like to know what is new?