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Problem

It is argued that business advertising is not expected to precipitate sales directly. If business advertising does not persuade organizational buyers to buy brand A versus brand B, what does it do, and how can we measure its effect against expenditures on other marketing strategy elements?

Step-by-step solution

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Step 1/3

Advertising is not expected to bring in the sales in short space of time. Advertisement is carried out in order to create awareness about the product, loyalty towards the product and to stimulate the customers to make purchases for the product.

Even though it is expected that advertisement would bring the results instantaneously nut it is expected that advertisement would have some effect on the sales performance of the company.

It is widely considered that the advertisement programs must be held accountable and the company that have taken into consideration the measurement of effectiveness of advertisement are generally more profitable as compared to other companies.

Step 2/3

It has been widely accepted that advertisement affect knowledge, awareness and other parameters. These criteria make it possible for the companies to measure them. Thus, the marketer does want to measure the advertising criteria that makes individual to move through the purchase decisions.

Thus, in case a company A is not being able to promote its product and compete against another company B, then it should measure the parameters such as knowledge, awareness, and other things that are a direct result of advertising.

Step 3/3

The measurement of the effect of advertising against the expenditure is a difficult thing to achieve. The effectiveness of advertisement can only be measured on the basis of evaluation of parameters such as recall, awareness, recognition, motivation and preference.

Marketing research companies can be roped in to conduct a research on the effectiveness of the advertisements as against the expenditure carried out on advertisement.