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Business (5) - Research results were presented showing that...

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Question: The five advertising functions, which might be more important to the retailers, are: Informing: Brand awareness in an important concept in advertisements which helps educating customers about the new brand and their features and also helps in increasing the demand for existing brands. Influencing: Advertisements should be effective enough to make people try the new products and services offered by the brand. Reminding and increasing salience: The brand has to be reminded at periodic intervals in order to have a fresh memory in the minds of the people, which can result in the likelihood of purchasing that brand. Adding value: The brand must focus on innovation, quality improvement and changing customer’s perceptions to add value to it. Assisting other company’s efforts: Advertisement for a brand helps in building relationships with the prospective consumers, prior to the direct contact of their sales representatives. This reduces the sales effort, time and costs involved in it.
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Unformatted text preview: Research results were presented showing that sales volume is about 14.6 times more responsive, on average, to changes in price than to changes in advertising. Data in this same section indicated that nondurable retail goods (versus durable retail goods) are relatively more responsive to price cuts than advertising increases. Create an explanation for this differential. 75 words Answer: I thought that it is due to this that non durable goods aren’t just expensive & also offer the customer some feelings, emotions, memories. The energy & time for me is I believe that non durable goods are much greater. For instance thinking about that when we are taking a trip somewhere. It makes sense to me that why it would be more durable verses the responsive goods. For the durable goods there are so many other alternatives. On the other hand for the non durable goods there are not so many. We should make decision on our experiences....
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