2.2. Advantages and disadvantages

Before creating the perfect advertising every producer should know its strong and weak sides to minimize the loss that may follow. Above all advertising helps the new product to enter the market and introduces it, simulates people to purchase. It allows the entrepreneur to expand his market, explore new markets and restrain already existing markets. Advertising helps to fight the competition, increases sales, and educates consumer of a product and new uses of existing products. To increase profits of producer advertising eliminates intermediaries standing between him/her and a consumer and establishes direct connection. Being advertised under a specific brand it assures the public in presenting a high-quality product so that advertising helps to win consumers’ believe and confidence. Advertising provides job opportunities for talented people (artists, designers, cartoonists, etc.) and facilitates work of salesmen. Furthermore, looking back on practices of progressing nations it is obvious that advertising is connected with living standards raising. Regarding to Winston Churchill advertising nourishes the consuming power of men and creates wants for better standard of living.

Bringing the opposition for advantages there are some quite important disadvantages of advertising useful to take a look at. Being an element of modern life advertising can be also considered as waste of money. It should be done perfectly careful to be efficient and cover invested costs, thought there is no guaranteed way of creating advertising that will work. By spending past of a budget manufacturer agrees with taking risks and being responsible for them. At the same time with spending large amount of money on advertising it is possible that prices of a product itself will increase since costs are raising which sometimes can be unnecessary.

Advertising undermines social values, creates a perfect picture of “how it should be” thereby reducing already existing values. It creates a wishes that are useless, people buy products that they don’t have need in, or on the other hand they aim to own this not affordable life-style from picture which leads to depression and affects general level of happiness of a society.

Advertising confuses the buyer, since most of information in it is different from reality. Blindly-believing in advertising consumer ventures to find himself disappointed and deceived, which destroys trust and results in companies’ competition growth. By that even larger amount of advertising is being created, making consumers ignoring it. This effect is called Banner blindness. In this case advertising rather confuses than helps.

Not correctly made advertising aimed on a certain target group can insensibly hurt feeling of another group, understating its values. Similarly there is a possibility of tasteless advertising conducting to unwanted reaction from the side of consumers even breaking any wish of purchase in them.

2.3. Goals and objectives

A certain number of objectives used in advertising can be represented as in short terms, so as in long term. Short term objectives belong to the ad copy itself- ad introduces certain idea and aim to convince. Simultaneously, long-term advertising is directed on creation of wishes. Ad does not only insertion of a product on a market but affects people’s mind, inspires not to have submitted product or service, but live a life represented in such an ad. Long-term advertising provides a lasting line directly to a specific target group. Marketer needs to know exactly his target group to make a unique experience focusing on it.

One of the goals of short-term advertising is getting attention. Bright colors, big letters, pictures with happy family and a great view on a background. Using catching phrases or sounds and jingles in advertising on radio or TV calling to action. For example “Get the pair of jeans that actually fit!” or “Start earning a higher salary today!”. For printed ads bigger letters and shorter phrases are most efficient. Something that the eye of a possible customer will catch without a special purpose. As a huge red billboard with a huge bottle in the middle actually “screaming” – “refresh on Coca-cola side”. It is also important to make a statement that will attract a specific reader and include one motivating benefit in the heading.

It is equally important that advertising should give a nudge to potential consumer for immediate action. “Buy now!”, “Call now!”, “Come to visit our website!”. It helps to use coupons for a consumer to come to the store and try now. Specify the deadline on it, create the feeling of an urgency, consumer should feel that this offer is good now but no later. Popularly used the trial version or something free given to consumer with the product. An example that I can mention relying on my personal experience- Hard rock café placing free coupons in the airport, which states “purchase more than 700 czk and get a complementary gift”. It is one of the most simple and at the same time effective ads, since it shows benefit, it creates interest and curiosity. Even if customer does not purchase for the amount mentioned above- he knows the company and its products. Not less effective is informing customers that current product is produced in limited amount, same as making a totally unique product as, for example, hand-made. People appreciate being special.

The amount of loyal customers is always changing- people can die, switch to another brand, move away from a country or change their life-style. According to such phenomena it is necessary to replace lost customers, by involving new methods of advertising, covering larger platforms (join social networks), exclude inefficient advertising, avoiding losses.

Advertising is designed to increase sales and build profits gradually, according to the U.S. Small Business Administration. Before becoming a permanent buyer the customer should try a product or service. By creating authentic positive experience producer is getting an opportunity for additional free-of-charge advertising. Word of mouth is the most effective type of promotion - satisfied customer is willing to share his experience with his friends and family, thereby increasing number of customers. The key to building sales and profits is to gradually increase your advertising over period of time. Many small companies budget an advertisings for bigger effect by allocating a certain percentage of sales towards it.

Another goal of advertising is building brand awareness. It indicates percentage of people recognize that a particular brand belongs to a producer. By building brand awareness manufacturer makes people think of his brand first when they are ready to purchase.