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Why do world-famous companies like Coca-Cola keep putting in a lot of advertisements?
Well-known companies will not blindly put in a large number of advertisements, but focus on marketing objectives, comprehensively consider the reality of products and markets, and strive to put in just the right place. The analysis is as follows: as long as the advertising target exists, we must advertise. There are four advertising objectives: informing, persuading, reminding and strengthening. Taking Coca-Cola as an example, marketing activities such as the launch of new products and the lottery need to inform consumers through advertisements; Because of the existence of competitors such as Pepsi-Cola, Master Kong and Uni-President, it is very important to persuade consumers to buy advertisements. Advertisements that remind consumers to drink properly will encourage consumers to drink more drinks and increase the average consumption. For example, Sprite's "Enjoy at Home" series of advertisements is to remind you of this; Faced with many health concerns, carbonated drinks need to constantly strengthen the reasons why existing consumers continue to buy. During the 20 10 World Cup, the "Brrrr" series of advertisements were cool. 2. Let's start with the number and frequency of advertisements. Marketing departments generally consider five aspects: product life cycle, market share, competition intensity, inherent law of communication and product substitution. Product life cycle: Coca-Cola has new products listed every year, and new products generally get strong marketing support. Market share and competition intensity: The competition in the beverage market is fierce. In some cities, you can even see Master Kong and Uni-President employees competing for the market. It is not uncommon for Qingdao and Snowflake to exchange curses and throw bottles at each other. Because of corporate culture, the sales of Coca-Cola have not gone crazy. Of course, not only in the beverage market, but also in recent years, the banners of telecom operators poaching each other at the beginning of colleges and universities are just the tip of the iceberg, and some cities have developed to the extent of organizing temporary thugs. The inherent law of communication: both TV advertisements and bus stop advertisements must follow the law of communication in order to achieve the best advertising effect; Generally speaking, Coca-Cola TV commercials will be broadcast continuously for four weeks and suspended for two weeks. Substitution of products: there are few products without substitution, and the stronger the substitution, the higher the risk coefficient and marketing motivation; Soft drinks are fast-moving consumer goods, with many competitors, many products and high substitutability. Well-known companies will not blindly continue to put a lot of advertisements, but strive to put them just right. The company is the product of shareholders' investment and needs profits in return. Every penny of the marketing budget is an investment in order to get better returns in the future. The marketing budget of mature consumer goods companies will account for110 of sales revenue, and the marketing budget also includes many inputs such as channels and consumption activities, among which advertising is only a part. Generally, large companies will hire professional advertising companies to help them formulate and implement reasonable advertising strategies. For example, Starcom is responsible for the TV media release of Coca-Cola in Chinese mainland. 4. Is the advertising investment of well-known companies really astronomical? In 2009, among the top 100 enterprises in the US market, the percentage of advertising investment in sales revenue was as follows: automobile industry 1.5-4.5%, alcoholic beverage industry 8.4-9.5%, tobacco industry 3.2-8.7%, and media and entertainment industry 2.2- 10.2%. Take several familiar brands from the above detailed data as examples: Ford's sales revenue is 54.3 billion US dollars, and its advertising investment is 65.438+0.5 billion US dollars, accounting for only 2.8%; Nike's sales revenue was $6.54 billion, and its advertising investment was $590 million, accounting for 9%. Pepsi's sales revenue was $22.4 billion, and its advertising investment was $960 million, accounting for only 4.3%. As can be seen from the above, the ratio of advertising investment to sales revenue is obviously not the case.