Businesses use methods of advertising and marketing to fulfill various goals. The main goal is usually to gain more consumers and hence make profits. For a newly established business, the fight for more sales is with large, well established businesses that have a loyal consumer base and a large marketing budget to grab even more prospective customers. With so many businesses fighting for customer attention, an entrepreneur of a newly opened business may find spending on advertising quite challenging.
However, advertising is important for any business regardless of its size, customer base, and budget. In fact, a survey of more than 3,000 companies found that business owners who maintained their marketing strategy over a five-year period saw an average 100% increase in their sales. On the other hand, companies that cut back on advertising grew at less than half the rate of those who advertised steadily.
In short, advertising should be made a high priority by all entrepreneurs. Here are some more reasons why an entrepreneur should give due importance to advertising:
1. Product introduction
If you are launching a new product in the market, it will need an impressive introduction to be accepted by potential customers. Ads for new products focus on explaining the specifications, showing how the product can act as a solution to problems or how it is better than other products in the market. Moreover, in the case of a new company launching a new product; advertising aims to introduce both the brand as well as the company behind it.
2. Increase sales
Many brilliant products have failed due to poor marketing strategies while mediocre products have attained high peaks due to brilliantly executed advertising. A business cannot make significant sales without marketing its product through the right channels. For instance, you will barely make an impact by advertising men’s razors on a morning show that is seen mostly by female audiences. Hence, to increase sales, you need to advertise as much as you can through the right channels. If you have a low advertising budget, be smart enough to choose the means which will have the most focused consumer reach.
3. Product promotions
Advertising is necessary to promote sales and special offers on your product. Limited time offers are introduced for a reason and will not reach your consumers without advertising. Promotions are an excellent way to continually get a company and product name out to the consumer, long after the product is initially introduced. Customers respond to sales and promotions more; in fact, 83% of consumers claim that they crave promotional products and are always on the lookout for sales and deals.
4. Product differentiation
New products are being introduced left and right in the market. They are usually very similar to old ones already present in the market. Advertising your product enables you to market the differences and benefits of your product over what is already available in the market. Focus on what sets your product apart and the problem your product solves.
5. Increase trust
Sometimes the primary motive of marketing is presenting a positive and trustworthy image of your business to your consumers. When your company is marketed well, consumers automatically feel a positive vibe about your product and become more inclined to make a purchase. Hence, the good image eventually gets transferred into higher sales.Be careful, because the opposite is also true. In a recent survey, 84% of consumers agreed that a poorly executed or intrusive ad gives them a negative opinion of the brand. Advertising is crucial to a business’s success and you must carefully evaluate your marketing strategy before launching your own business. Even the smallest right move can bring your product into a positive light for your customers. This will eventually reap you higher sales and profits for your business.