Well-known companies don't blindly continue to advertise heavily

Abstract: Well-known companies will not blindly continue to put a large number of ads, but around the marketing goals, comprehensive consideration of products and market realities, and strive for the right to put. The analysis is as follows: 1, to solve the problem of why advertise first. As long as the target of the advertisement

Well-known companies will not blindly continue to put a large number of ads, but around the marketing goals, comprehensive consideration of products and market reality, and strive for the right to put. The analysis is as follows:

1. Solve the problem of why advertise first.

As long as the advertising target exists, that is, advertising is necessary, advertising target has four: inform, persuade, remind, strengthen.

Take Coca-Cola as an example, there are fruit grain milk top new products listed, uncovered win prize and other new marketing activities need to be advertising to inform consumers;

Because of the existence of Pepsi-Cola, Master Kang, and other competitors, it is very important to persuade consumers to buy advertisements.

Proper reminder of the consumption of the ads will encourage consumers to drink more beverages, improve the average consumption, such as Sprite's "home" series ads to remind you of this;

Carbonated beverages face many health concerns, the need to constantly strengthen the existing consumers continue to buy reasons, the 2010 World Cup "brrrr" series of ads, Cool is the reason.

2, again talk about the number and frequency of advertising issues.

The amount of advertising depends on the advertising budget, so what are the factors that affect the advertising budget?

Marketing department generally consider five aspects: Product life cycle, market share, competitive strength, the inherent law of dissemination, product substitution.

Product Life cycle: Coca-Cola has a new product listing every year, new products will generally get strong marketing support.

Market share and competitive strength: the beverage market competition is white-hot, some city can even see Master Kang and unified staff in order to scramble for the market, Qingdao and snow confrontation and throwing bottles are not uncommon; Due to the relationship between corporate culture, Coca-Cola sales have not been crazy to this point. Of course, not only in the beverage market, in recent years, telecom operators in the college opening period of sarcasm is only the tip of the iceberg, some of the city developed to the extent of the organization of temporary thugs team.

The inherent law of communication: Whether it is the television advertisement or the bus stop advertisement must follow the dissemination law, can achieve the best advertisement effect; In general, Coca-Cola TV ads will choose Lianbo around, suspended for two weeks.

Product substitution: There are few alternatives, the greater the risk factor of substitution and the higher the motivation of marketing; soft drinks are fast-moving consumer goods, competitors and products are many, the substitution is very high.

3, well-known companies will not blindly continue to put a large number of ads, but to strive for the right to put.

The company is the product of shareholder's investment, and it needs profit in return. Every penny of a marketing budget is an investment, and it's all about getting better returns in the future.

Generally mature consumer goods company's marketing budget will account for 1/10 of sales revenue, the marketing budget also includes channels, consumer activities and many other inputs, advertising is only part of it.

In the case of limited budget, it is very important to spend every penny well.

In general, large companies will hire professional advertising companies to help them formulate and implement a reasonable advertising strategy, such as Coca-Cola in the mainland's television media delivery by the Starcom company responsible.

4, the advertising investment of well-known companies is really astronomical?

2009, the United States market advertising into the top 100 companies, advertising investment accounted for the proportion of sales revenue of the data are as follows: Automotive industry 1.5-4.5%, alcohol and beverage industry 8.4-9.5%, tobacco industry 3.2-8.7%, Media entertainment 2.2-10.2%, soft drink industry 4.3-9 %,it0.8-3.2%, household cleaning industry 16.1-17.3%, personal care industry 10-30.8%.

Take a few familiar brands from the above details: Ford Motor sales revenue of 54.3 billion U.S. dollars, advertising investment of 1.5 billion U.S. dollars, only accounted for 2.8%; Nike sales revenue of 6.54 billion U.S. dollars, advertising investment of 590 million dollars, accounting for 9%, Pepsi sales income of 22.4 billion dollars, advertising into 960 million dollars, accounted for only 4.3%.

From the point of view, from the advertising investment in the ratio of sales revenue, it is clearly not the case.