Advantages and disadvantages of Branding in developing advertisement campaigns
The advertisement is a communication involving the public that is aimed at marketing a business product or service. The awareness resulting from the advisement exercise helps the company to gather more customers. As the sales of the enterprise increase, the anticipated gross profit margin inflates meeting the core objectives of the enterprise. The cost of advertisements is catered for by sponsors and propagated in newspaper, magazines, websites among other platforms. This paper aims to exhibit some of the advantages and disadvantages in developing advertisement campaigns where two brands are involved.
If two companies collaborate in the advertising their goods and services, the extension of their market share will be enriched. The exploration of new markets while retaining the current ones will enable more consumers to gain awareness about the concerned products. Coke and Wal-Mart, for instance, can achieve wider coverage when they collaborate in their advertisement campaigns as compared to individual efforts.
When advertisement incorporates two brands, better quality of products and services are achieved. Since varying goods are advertised with different brand names, assurance of product quality is guaranteed to the recipient consumers. The revenues earned by the manufacturers of both brands increases while the consumers equally benefit from reasonable buying prices.
Developing an advertisement campaign while engaging two brands allows the sharing of advertisement costs between companies whose names are involved. A reduction of cost leads to a consequent increase in the anticipated profits of both organizations. The expertise is well harnessed by combining the strategies used by each company in its alertness campaign paving a way for effectiveness and efficiency.
When advertisement campaign involving two brands is incorporated, intermediaries are eliminated. The marketing promotions aid in creating a direct link between the manufacturers and the targeted customers. The return on investment of both the companies involved in advertising their brands rises because the prices of products and services are interfered with.
Advertisement involving two major brands may encourage the sale of inferior goods. One of the brands incorporated in the campaign may presumably be of low quality thereby taking advantage by sharing the goodwill and reputation of the other brand. Consumers become confused when making their choices for the products and services that are more desirable. Inferior products end up infiltrating the market despite the effort of the buyers of paying decent prices.
Advertisement efforts aid in the launching of new goods and services on the market. However, when two are more brands are involved in the advertisement campaign, the process becomes complicated. Consumers attach their attention on the popular brands thus hindering them from noticing the new commodity. It is challenging for one company to invest its resources and time in introducing fresh products of another company into the market while its interests are left out.
Advertisement ensures that consumers recognize and become loyal to a particular product or service. The potential users retain the name of the company involved in the advertisement campaigns due to strong brand name, logo, and image. When two major brands are involved, the extent of loyalty and acknowledgment demonstrated by the consumers is diluted as compared to campaigning for a single brand. As a result, the trust may decline to amount to fewer sales.
Advertisement allows marketing of products and services to achieve effectiveness. In instances where publicity entails two major brands, large market size is attained, the companies can share advertisement cost, and better quality of products and services is achieved. On the contrary, dilution of customer loyalty, difficulty in the introduction of a new product into the market and sale of inferior goods can emanate from advertisements that entail two major brands.