Hi guys this is my first attempt at an Analysis of an issue.
It was done under timed conditions with a random problem
What do you think?
Any pointers?
Cheers Chris
Analysis of an issue:
Question:
"All companies should invest heavily in advertising because high quality advertising can sell almost any product or service"
The notion that investing heavily in advertising will result in higher revenue and subsequent profit increases is fundamentally incorrect. The quality and nature of an advertisement is more important than the cost, and successful advertising need not cost a large amount. Furthermore, the advertising method and medium, which influence the overall cost, must be applicable to the product type. Since the advertisement must reach the intended audience, if the medium is not applicable the result will be considerably less than expected.
On the subject of cost there are many mediums available that do not require large capital outlays. For example, viral marketing through the internet has been a phenomenon of late. An example of large brand recognition gains and subsequent sales increases through viral marketing can be seen in the Old Spice add. It initially screened on television like a typical add, but the comical nature of the add guaranteed large and long term mass market penetration through newspapers and online viewings. Another example is the "free pizza" advertisement in the Australian yellow pages. In short, a company placed a series of cryptic clues in their add in the yellow pages directing people to the location of their shop. If the individual solved the puzzle and found the shop they received a free pizza. This low investment achieved far more for brand recognition than a conventional television campaign. Thus highlighting how ingenious advertising need not cost large amounts of money.
Despite all the unique methods of advertising available that have varying costs, some form of advertising is still a fundamental requirement in most businesses. The issue at hand thus is the cost, type and quality. To expand on this further, the type of advertising used is of critical importance. For example, if a retirement housing company was trying to use viral marketing to advertise to retirees, who incidentally have a considerably lower rate of internet connection, it is likely that the cost involved would not be offset by the subsequent gains in revenue since the campaign is unlikely to be successful. Whereas, if a movie franchise had a viral marketing campaign there is potential for success, and if success was achieved, the subsequent economic benefits would be immense. One of the earlier examples of this was the matrix, with the quote "what is the matrix,". This quote was synonymous with the movie, creating a mystique and curiosity within the population and the result was a highly successful movie franchise.
The quality of advertising is also of relevance, but the definition of quality is important. There are many advertising agencies that have been around for a long period of time. The natural assumption would then be that experience impacts upon the quality of an advertisement. However, the quality of an advertisement can be measured through its success. A large number of the initial viral marketing campaigns came from smaller, lesser known advertising agencies that would naturally have smaller commission fees. So not only were these advertisements of a higher quality, but they were also of lower cost. Subsequently resulting in a better overall cost benefit to the client and refuting the assertion that companies should invest heavily to sell a product.
Overall, the penetration of a product and its subsequent success is dependent upon the quality of the initial product and upon the relevance, ingenuity and quality of an advertising campaign that goes with the product.
It was done under timed conditions with a random problem
What do you think?
Any pointers?
Cheers Chris
Analysis of an issue:
Question:
"All companies should invest heavily in advertising because high quality advertising can sell almost any product or service"
The notion that investing heavily in advertising will result in higher revenue and subsequent profit increases is fundamentally incorrect. The quality and nature of an advertisement is more important than the cost, and successful advertising need not cost a large amount. Furthermore, the advertising method and medium, which influence the overall cost, must be applicable to the product type. Since the advertisement must reach the intended audience, if the medium is not applicable the result will be considerably less than expected.
On the subject of cost there are many mediums available that do not require large capital outlays. For example, viral marketing through the internet has been a phenomenon of late. An example of large brand recognition gains and subsequent sales increases through viral marketing can be seen in the Old Spice add. It initially screened on television like a typical add, but the comical nature of the add guaranteed large and long term mass market penetration through newspapers and online viewings. Another example is the "free pizza" advertisement in the Australian yellow pages. In short, a company placed a series of cryptic clues in their add in the yellow pages directing people to the location of their shop. If the individual solved the puzzle and found the shop they received a free pizza. This low investment achieved far more for brand recognition than a conventional television campaign. Thus highlighting how ingenious advertising need not cost large amounts of money.
Despite all the unique methods of advertising available that have varying costs, some form of advertising is still a fundamental requirement in most businesses. The issue at hand thus is the cost, type and quality. To expand on this further, the type of advertising used is of critical importance. For example, if a retirement housing company was trying to use viral marketing to advertise to retirees, who incidentally have a considerably lower rate of internet connection, it is likely that the cost involved would not be offset by the subsequent gains in revenue since the campaign is unlikely to be successful. Whereas, if a movie franchise had a viral marketing campaign there is potential for success, and if success was achieved, the subsequent economic benefits would be immense. One of the earlier examples of this was the matrix, with the quote "what is the matrix,". This quote was synonymous with the movie, creating a mystique and curiosity within the population and the result was a highly successful movie franchise.
The quality of advertising is also of relevance, but the definition of quality is important. There are many advertising agencies that have been around for a long period of time. The natural assumption would then be that experience impacts upon the quality of an advertisement. However, the quality of an advertisement can be measured through its success. A large number of the initial viral marketing campaigns came from smaller, lesser known advertising agencies that would naturally have smaller commission fees. So not only were these advertisements of a higher quality, but they were also of lower cost. Subsequently resulting in a better overall cost benefit to the client and refuting the assertion that companies should invest heavily to sell a product.
Overall, the penetration of a product and its subsequent success is dependent upon the quality of the initial product and upon the relevance, ingenuity and quality of an advertising campaign that goes with the product.
