Advertisement is usually done “by identified sponsors through the various media” so as to persuade consumers on the quality of certain products (Taflinger, 1996). However, not every company relies on advertisement for it to be successful and competitive in the business market. While there are several reasons as to why organizations advertise their products, their necessity varies depending on the organizations’ needs. The purpose of this essay is to state the main reason as to why producers advertise their products.
The main reason that producers advertise is to make money to expand their product line. This is because, advertisement has been the backbone for almost every organization particularly the producers who rely on sales in order to retain their images. When producers advertise their products, they get an opportunity to “inform and persuade potential and current customers through messages purchased in various media” (Schenck, 2005, p.136). As a result, their products become universally known and the image of the company attains an outstanding look. “Creating new customers and increasing brand recognition” is also another opportunity that producers have taken advantage of in advertising so as to generate easy money (Platania, 2007). This is because, when new and old consumers are retained and the products become worldwide known, then it means that many clients will be buying these products and in the long run it is the company that enjoys the profits made from these sales. For as much as advertising requires a lot of time and resources for it to be successful, its rewards as so great that a producer company can not shy away from it. When many of these products are sold, the producer company does not incur losses since all the products are sold before their expiry dates. For instance, a bakery will not incur losses as long as it has established a tight relationship with its consumers through advertisement. Consequently, the profit made is used to expand the production so that more money can be made. This is supported by Mcgraw-Hill’s statement that “It pays to advertise” (p. 183). Even though such a company may feel that it has spent a lot in paying the ads agency, the money spent through advertisement is usually multiplied depending on the effectiveness of the company. The money obtained can be used to hire workers, purchase new machinery and for maintenance of the company’s routine activities. All strategies that a company uses to expand its business are aimed at making money through profits. So is advertisement; it is always the foundation on which a producer company generates income as it expands its line of production.
In conclusion, even though advertisement is made for different purposes, depending on the organization’s needs, all these purposes lead to one main reason which is to make money. Money made through advertisement is obtained when the organization makes profit as a result of its campaigns in making the products known to the consumers.