Established Companies Such as Coca-Cola and Mcdonalds Do Not Need to Waste Profits on Advertising as They Already Have a Vast and Loyal Customer Base.
Student ID: 0080379103
Student Name: Jing SUN
Word count: 1639
The role of advertising in the developments of brand image and brand extension in established companies.
Utilizing advertising in a most effective and efficient way is always a concern in most companies, as advertising requires a costly investment in both capital and human resources, which in return is expected to create positive outcomes. With a large volume of consumers and brand loyalties created in established, some argue that advertising can be merely a waste of money. While this idea addresses two major …show more content…
Both informational and transformational advertising strategies may play irreplaceable functions in building a brand image, through informing, persuading and reminding stakeholders about the brands (Padgett and Allen, 1997). Firstly, advertising can enhance a brand’s intrinsic value, which is regarded as the capability in performing functionally. Before purchase, informational advertising informs the benefits and functions a product may offer. After purchase, informative advertising may help to keep reminding consumers the using experience with key