Introduction
The advertisement is an essential element of companies’ marketing strategy, which allows commercial organizations to promote their products and services effectively. Advertising is an intricate process of informing and convincing people to pay attention to the product or service. This process involves a number of scientific fields, such as psychology, marketing, IT, and statistical analysis. Advertisement serves multifunctional purposes, and it directly affects consumer behavioral patterns in various ways. Consecutively, change in the behavior of the consumer influences his/her decision making towards more profitable outcome for the company. These features of advertisements make a great instrument for companies to utilize.
Background
Although advertisement is mainly used to promote the product or service, there are additional functional properties attributed to it. Advertising provides key functions, such as brand identity, information for consumers, customer persuasion, trend preview, demand generation, customer base formation, and pricing display (Rodero, 2017). Advertisement allows firms and companies to establish consumer confidence in their brand properly. Most consumers are unaware of possible choices and options available; therefore, advertisement outlines the main features and benefits for potential buyers (Joshi & Rahman, 2017). Recent developments in advertising include social media and intensive web marketing. The online video platforms, such as YouTube, allowed to target the desired audience without general public exposure through TV (Becker, Wiegand, & Reinartz, 2019). Some companies influence consumer’s behavior by offering special and time-limited pricing with a sense of urgency. This approach forces the customer to make a quick decision with poor judgment.
Functions of Advertising
The most important role of advertising process is to spread the message about the product and inform the customers. However, an advertisement can be used for establishing a brand identity; it will result in creating a customer base loyal to the brand (Rodero, 2017). The advertisement industry puts an emphasis on analyzing the concept of persuasion. The ultimate goal of advertiser is to convince the unsuspecting buyer to purchase the product or service, even if he/she does not need it (Pechmann & Catlin, 2016). Internet advertising allowed to focus on small, but more susceptible audience through YouTube channels. It has a positive effect in reducing the advertising noise and making it useful for the exposed consumers (Becker et al., 2019). Professional advertisement specialists are proficient in predicting and observing current trend shifts in the market.
Effects of Advertising
Furthermore, good advertising can have a profound effect on both customers and other competitors. An effectively executed advertisement campaign can quickly build a loyal customer base, which will enable to uplift the brand image of the company (Rodero, 2017). Advertisers can indirectly influence and hinder the competitors’ reputation without breaking marketing rules. However, constant marketing can be devaluating and decrease profits (Pechmann & Catlin, 2016). Economically advertising has always been costly privilege for companies; nevertheless, the marketing industry creates more jobs and business opportunities for people. It promotes creativity and social change, making advertising a powerful tool to trigger social interactions. Constant exposure to advertisement can form new cultural values. For instance, McDonalds has positioned itself a place of relaxation and leisure during weekends, because it targets lower class families with children (Becker et al., 2019).
Consumer Behavior Changes
Lastly, advertisement experts are intelligent psychologists, who can use mental pitfalls of human brain properly. For example, displaying prices during sales under restricted time forces consumers to delve into the instincts of scarcity (Aghakhani & Main, 2019). This methodological approach is widely used, and it is effective without actually lowering the price during sales. The given process is part of creating artificially limited supply with higher demand (Chen, Feng, Liu, & Tian, 2019). All these advertising methods enable advertisers to directly or indirectly affect the consumer’s behavior.
Conclusion
In conclusion, advertisement allows companies and commercial organizations to raise awareness of their product or service among consumers. Although it is highly multifunctional and can have various effects on the market, the main purpose is informing and persuading people to pay attention to the given product. Therefore, it is important to realize the key underlying ideas behind the advertisement process.
References
Aghakhani, H., & Main, K. J. (2019). Can two negatives make a positive? Social exclusion prevents carryover effects from deceptive advertising. Journal of Retailing and Consumer Services, 47(6), 206-214.
Becker, M., Wiegand, N., & Reinartz, W. J. (2019). Does it pay to be real? understanding authenticity in TV advertising. Journal of Marketing, 83(1), 24-50.
Chen, Q., Feng, Y., Liu, L., & Tian, X. (2019). Understanding consumers’ reactance of online personalized advertising: A new scheme of rational choice from a perspective of negative effects. International Journal of Information Management, 44(5), 53-64.
Joshi, Y., & Rahman, Z. (2017). Consumers’ Sustainable Purchase Behaviour: Modeling the Impact of Psychological Factors. Ecological Economics, 159(14), 235-243.
Pechmann, C., & Catlin, J. R. (2016). The effects of advertising and other marketing communications on health-related consumer behaviors. Current Opinion in Psychology, 10(2), 44-49.
Rodero, E. (2017). Effectiveness, attention, and recall of human and artificial voices in an advertising story. Prosody influence and functions of voices. Computer in human Behavior, 77(1), 336-346.