Effect of Advertising on Demand for Goods
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The advertising to which Americans (and consumers throughout the world) are subjected to on a daily basis represents a substantial investment by companies. Companies create advertising campaigns with the goal of promoting their products or services, and advertising is generally considered to have a substantial impact on demand. If this were not the case, it is unlikely that companies would commit the resources that they do to the process. This research examines some of the ways in which advertising can affect demand for goods and services, and evaluates specific examples of Web-based promotion and their apparent goals with regard to changing demand. In addition, a computer software company's marketing program is evaluated in light of its goals and the way in which it seeks to modify demand.Advertising can act on demand by increasing the demand for a particular brand but not changing the demand for a good in general, it can increase demand for a good in general without focusing on a particular brand, and it can work on a "pull" or "push" level. Items which are marketed directly to consumers and which encourage them to seek out specific products or brands are "pulled" through the distribution channel by demand at the next level. Items which are marketed to channel participants farther up the distribution chain are "pushed" through the system. Trendy items and fad items are typically pull items while everyday so-called com
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its website, and because the company has targeted specific consumer segments in addition to car buyers as an entire group, it is likely that the website will have a small increase on demand for Ford products. The reason that the change will not be greater than that is that consumers must actively seek out the website. This is in comparison to television or print advertising where consumers "happen upon" Ford advertisements regardless of whether they are in the market for automobiles or not. In the case of the Ford website, those who visit are already interested in Ford vehicles, so they are likely to be predisposed to purchase a Ford. In those cases where consumers are comparison shopping and looking at the websites for several different manufacturers, Ford's website design might indeed pull in additional consumers.
Because websites are not passive forms of advertising (consumers must actively seek out websites), and since Ford is promoting its own automobiles rather than promoting the automobile as an excellent source of transportation, it is unlikely that the website will have a significant impact on demand for automobiles as a whole. Instead, it is likely that Ford may see some increased sales as a result of its website,
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Approximate Word count = 2686
Approximate Pages = 11 (250 words per page)
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