Advantages and Disadvantages of Brand Advertising

Benefits of Brand Advertising are as follows:-

  1. Increases Consumer’s Knowledge about Market

Brand advertising increases the knowledge of consumers. By viewing advertisements and websites, consumer can make the right selection within his budget. Without ads, a consumer will not be well-informed about different variety of branded products present in Market.

2. Helps in Increasing Sales and Revenue

When brand advertising of company is done by any firm, it is a kind of investment for organization as it generates revenue in long run. An advertisement generates interest about advertised product in minds of customer, which in turn leads to demand and this gives rise to higher sales. A higher sale results in higher revenue.

3. Helps in Better Brand Building

For developing good brand reputation, the firm has to improve its advertising activities. Brand advertising in India and around the world can be improved by using various mediums like television, social media, newspaper, radio etc. Also firms can organize events, campaigns, contests, product giveaways, after sale customer reviews and so on. These activities will increase awareness among masses about brand. Hence, sales will increase and if quality of brand is good, it will develop good brand image in minds of consumers.

4. Assists in Target Oriented Marketing  

Young generation of country is growing up with the Internet as part of their daily routine. So firms targeting youth should advertise brand through social media sites. For example; a cosmetic Branding company targets mostly women but, nowadays companies are introducing new product lines targeting men also like men’s fairness cream.

Suppose a branding company has its target customers in Delhi city, proper market research needs to be done within city so that promotional activities may be done effectively. Through ads, the intended consumers are made aware about existence of branded product.

Disadvantages of Brand Advertising are as follows:-

 1.  Cost of Advertising

When a firm promotes its brand, there is a huge cost associated with it. Large Brand advertising companies in India invest billions of rupees every year to promote their product.  If firm is not able to make enough profit through these advertisements, it becomes an organization in loss. Startups have lower amount of allocated funds so, they are not able to promote their brand like big and successful firms. Therefore, they have to promote brand through newspapers, social media or radio.

 2.   Promotion of Products with Bad Effects on Lifestyle

Advertisements made on products categories like cigarettes and wine have harmful side effects on end consumers. Many branding companies promote different kinds of stylish clothes through slim models. End consumers, sometimes, get influenced by these models and they become more conscious about themselves, which leads to food aversion and loss of appetite.