Requirement: The topic of the essay- Is advertisement is necessary for the advertisement? (passive essay)
This is Le course assignment. You need to write 650 words, add thesis statement, topic sentence and having all paragraphs one relevant research, references and conclude all paragraphs at last and of 650 words and 4th paragraphs for the degree by some people and last conclude.
Is advertising as important for business as goodwill?
The core reason behind the popularity and success of a business is the part played by advertising. Advertising informs and spreads the knowledge of the products and the services offered by the business. Advertisement helps a business in many ways such as, developing product differentiation, it helps in marketing and promotion and finally spread awareness through advanced methods (Salamovska, and Todorovska, 2016). Advertising is very important and essential for business but works alongside with and influences certain other aspects like good will which appreciates as the brand name grows.
Firstly, advertising is important for business primarily for creating product differentiation in the market. Advertising helps a business in creating differentiated selling propositions. Charter (2017) theorizes that goodwill is less important than advertising because it does not help in solving the primary aim of a businesses expansion and is therefore dependent on advertising to appreciate its value.
Advertising helps the customer in identifying the products and services of a business and also it helps create a differentiated product that attracts the customers in the targeted market. As per Kodama (2016), Absolut, a liquor brand made a distinctive presence in the market by promoting its oddly shaped bottle. The company followed promoting the same advertisement for more than a decade and pulled in a large number of consumers. Thus, it can be summed up that advertising plays a more important part for a business than that of goodwill since advertisement build the brands value.
Secondly, advertising is the most important and easy way to connect and communicate with the customers of a business. Advertisement helps the customers in gaining information about the business and the avail the services offered by the business entity. Primarily, it is important for the launch or providing any crucial information to the customers. Further, advertising also helps business in creating consumer awareness and in turn promote the products, services including the ideas manifested by the business. Sainsbury introduces 20 GIFs on Giphy and also a music video which included dancing individuals in the kitchen while cooking. The company had also introduced a 60-second TV commercial. This resulted in attracting 17% of their online customers (Kate Maggie 2017). Thus, it can be summed up that advertisement provides more advantage to a business as it increases the client base and sales which automatically influences the businesses goodwill value during resale takeovers.
Thirdly, for the advancement and the development of a Business Entity, advertisement is very important and primary when compared with the importance of goodwill for any business. advertising is more important for a business also due to its accessibility to various ways of business promotion. A business uses and implements social networking, flyers, banners, posters and many relevant ways of advertising in order to reach out to the targeted audience. According to Jussila et al. (2014), the global brand Nike has seen a rise of 57% in its sale parameters after it started advertising using the social network. Once again, we see that advertising is more important as it boost brand value as compared to good will which is referred to a value-added reference driven by advertisement.
It’s often argued that advertising is not as important as goodwill. Goodwill helps generating value during the sale or mergers of a business but the value and popularity are directly influenced by advertisement. There is no doubt that goodwill helps increase finances generated during the sale of a business but still remains less important than advertisement. Without goodwill, finances generated from brand value would not be possible and businesses would be sold for a flat rate. So, in many instances, goodwill is the guiding light for business owners from where they receive financial benefits from building brand value. Goodwill can also be classified as important as advertising, as it help improves finances generated from the sale of a business. argues that without the presence of goodwill, business owners would lose interest towards building brand value as their business value would be limited to its stock and assets.
Hence, it can be concluded that although goodwill plays an important role towards inflating a business brand value, a business cannot flourish without proper advertising. Further, advertising is also useful and important as it helps in boosting the sales and services of a business. Finally, it has been concluded that advertising is as important for a business or rather more important compared to goodwill due to the above reasons.
Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge. Kodama, M., 2016. Interactive business communities: Accelerating corporate innovation through boundary networks. Routledge.
Jussila, J.J., Kärkkäinen, H. and Aramo-Immonen, H., 2014. Social media utilization in business-to-business relationships of technology industry firms. Computers in Human Behavior, 30, pp.606-613.
Kate Maggie.2017. “Sainsbury's unveils 'step change' in advertising with new food campaign”. Campaign. https://www.campaignlive.co.uk/article/sainsburys-unveils-step-change-advertising-new-food-campaign/1421155
Salamovska, S.M. and Todorovska, M., 2016. Brand Valuation and Marketing Assets Assessment-Theoretical Background vs. Contemporary Managerial Issues. Strategic Management, 21(4), pp.37-44.