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Advertising Practice Across Sectors

Affects Of Advertising On Sales And Market

Advertising Practice Across Sectors

Advertising is a multi-disciplinary intriguing concept for many people which they can interpret in several ways. Marketing experts, for instance, are mostly concerned with how advertising affects sales or market share and, ultimately, how profitable to the firm it will be (Tellis, 2003). Economists are interested in the effects of advertising on concentration, competition and consumption, amongst other economic areas. Policy-makers (and consumers) are interested in the social effects of advertising (i.e. how persuasive or dominant it is, how believable or aggressive, etc).

The suitable use of advertising could define the difference between simply growth and development, and the success largely depends on the needs of marketing (De Saez, 2002:77).This attained information later on could be used to organize guidelines for effectual investment and smartly utilizing the advertising resources. It can also aid in to guiding about teh future market based asset investment decisions and to estimate the competency of current investments in these assets (Andras, Srinivasan, 2003:88)

Advertising expenditures should be treated as an investment in capital asset (Bloch, 1974). Contrarily, Weiss (1969) suggests that adjusting the profit rates of a sample of industries to correct for the expensing of advertising does not change “the strong positive relationship between profit rates and advertising intensity” (Weiss, 428 in Bloch, 1974). Advertising today has become an essential element to endorse sales, introduce new product, and create brand awareness, good public image and for increasing the scale of production.

This research report will provide insight about the advertisement and motives behind employing advertisement along with rationale for choosing a particular media for advertisement. The area under study is UK business world.

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Advertising Practice Across Sectors

1.1 Introduction

Advertising presently has become an essential function in the world of modern business due to severe competition in the market. It encompasses the economic and social life to distribute information that is useful to customers, business and the society. However, advancements in technology, shifting demographics and economic upheavals make targeted advertising more challenging for firms. Moreover, the advertising base of the traditional mass media is disappearing and migrating online. Firms are continually becoming aware of the importance advertising plays in company growth as it will lead to higher profits and increased market share because advertisements helps in creating brand awareness among people that leads to an increased brand image and make the goods and service popular among the potential customers. Advertising has a significant role to create a positive image of the brand and make the product more famous among its group of customers. Through advertisements an organization can sell do proper promotion of the goods rather than selling it (Philippe and Bloom, 2005).

1.2 Literature Review

Advertising facilitates people to gain wisdom about the product and purchase the advertised brand. Advertisements are tools that act as a means of communication between the organization and customers. It helps to introduce the product and increase the demand among people that boosts the sale of product. Advertising is a multi-disciplinary intriguing concept for many people which they can interpret in several ways. Marketing experts, for instance, are mostly concerned with how advertising affects sales or market share and, ultimately, how profitable to the firm it will be (Tellis, 2003). Economists are interested in the effects of advertising on concentration, competition and consumption, amongst other economic areas. Policy-makers (and consumers) are interested in the social effects of advertising (i.e. how persuasive or dominant it is, how believable or aggressive, etc). As marketing environments continue to change and the global market becomes clearer, it is important to investigate the practice of advertising strategy and use the data as evidence to support or oppose advertising in a marketing context.

1.3 Research Aims and Objectives

The ultimate aim of the research is to evaluate how firms use different advertising practice across various sectors. In this context the objectives have been summarized as below mentioned:

  • To find out whether firms advertise or not and what are the sectors that advertise the most.
  • To access the aims behind firms decision to advertise and whether these differ across sectors.
  • To predict the selection of media type according to advertising to sales ratio, sector and industry concentration, whether companies operate as a monopoly or compete with other industries in the market.

1.4 Research Methodology

Appropriate research methodology selection helps to assess the research problem in an effective manner. In this research, for primary data collection questionnaire method will be used and for further accumulation of secondary data various journals and articles will be reviewed in order to collect information about the significance of marketing and advertising. The survey would be conducted in various organizations of UK from diverse sectors. The research would be performed among various advertising mangers to evaluate the effectiveness of marketing in varied sectors. The survey will address different questions, some of quantitative in nature, as well as those of a qualitative nature. The sample of companies used in the analysis state whether firms advertise or not, and if they do, both media and promotional expenditures are listed. The researcher will try to conclude the survey within the set time period and all the constraints for ethics will be continued in the research and information that would be collected from the survey would be kept confidential (Macruray, 2009).

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1.5 Research Rationale

Research work is conducted on the basis of its significance in the modern business environment. This study report is having a high degree of importance in the area of marketing and advertisements. Advertising is an effective tool that includes imagination, concepts, creativity, innovation and ideas to endorse new product and inform about the changes that has been made in the old product. Advertising refers to selling up of goods and services but for it one requires an imagination and inspiration of mind with the work of splendor and art. In the context of marketing advertising is said to be both influential and magical, it has incredible impact on the society and people. Advertisement basically drives the world and plays a vital role in the minds and emotions of customers. The words of advertising have a strong influence on the minds of people and leave an image of the brand in their intellect.

In the present scenario of marketing, advertising is practicing a swift of rapid economic growth all around the world and it draws the attention of target customers and try to douse their thirst for defined goods and services by offering them in a favorable manner. Advertising depends on the strategy of marketing that includes various approaches like public relations, packaging, product, price, customer service, promotional programs and word of mouth. It was found that advertising is key to sale a good or service and provides information to the customer regarding the product (Vilanilam and Varghese, 2004). Advertising also acquires importance because it educates about provides wisdom to customers regarding the product, it can be said that advertising promotional tools are the revenue generator as and adds value to the business. Advertisement for any of the firm is important as it helps in building up brand image and gain the economic growth worldwide.

Advertisement is usually used to communicate about the business information to the current and perspective consumers. It is indispensable for both organization and the buyers and helps in developing strong brand of the product. Through this tool customers and companies share a strong bond of relationship with the help of branding. In today’s era companies are focusing a lot in creating and maintaining strong public relation with its consumer base as it is one of the greatest way to form a brand as it helps in to understand a organization and its product.

1.6 Research Question

The research question in any of the research report as it provides the right direction to the survey in order to attain the subject of research taken under consideration in an effective manner. With the help of research question the researcher can organize the aims of the project undertaken in a detailed manner. In this context, the questionnaire designed for this study highlights the significance of advertisement and what are the aims behind a firm’s decision to advertise and to predict the selection of media type according to advertising to sales ratio.

1.7 Structure of the Research

The research report undertaken is a complete planned piece of work that is being undertaken and is presented in the form of a chronological order. Every pace of the researched work is mutually dependent on each other and thus appropriate composition of all the steps are done in the form of sequence of chapters. This research report is also arranged in the form of sequential chapters and a brief idea of every section that is being included in the research is given as follows:

  • Chapter 1: Introduction – In this section an apparent image of the research report and its background is discussed in a detailed way. The aim of the study is also being explained under precise headings, every report undertaken is due to some specific objectives that gives a basis for the selection of a particular topic. In this respect a research rationale is provided in this chapter and moreover a succinct debate on the method of research is also included in this section that provides a brief idea of the entire research methodology in subsequent chapters.
  • Chapter 2: Literature Review – This is the second section of the research formulated in the form of a literature survey. It is the most significant element of the overall research undertaken and this part prepares various themes of the study and some useful academic and scholarly articles and journals are also reviewed in this context on the issue of the study. The literature review in this research report is mainly aimed to highlight the significance of advertisement industry in various firms and how it helps various sectors to develop strong brand image of the company. Further in this perspective the researcher would also analyze the aims behind a company’s decision to advertise and the selection of media type according to advertising and sales ratio, sector and industry concentration.
  • Chapter 3: Conceptual Framework – This chapter will be representing the glimpse of the literature review and provides the ground for the current study. it is mainly done to acquire clarity of thought for the research, here the hypothesis and the structure of research is being defined.
  • Chapter 4: Research Methodology - This chapter will be the third chapter of the research report and would mainly give information about the specific research methodologies that have been carried out in order to collect and analyze the data. This chapter will also provide rationalization for the selected method of research with the help of obtained research philosophies and approaches. Other than this various subsequent factors like ethical considerations, reliability and validity of the study is also being classified with their equal concentration in order to sustain the exactitude of research in the advertisement industry.
  • Chapter 5: Data Analysis – In this section the results build up from the primary data collected would be assessed and discussed, in order to hold the facts that is being assembled from the findings of the data, various concepts from the literature review and responses gained from the research in the most reliable manner.
  • Chapter 6: Conclusion– This is the last chapter of the research report and in it the results of the findings are presented in line with the aims and objectives of the research. Other than this the results of the survey carried out are also included in this section, some effectual and functional recommendations are also projected for further research work as well as for the advertisement industry to gain insights about the significance of this industry.
  • Chapter 7: Reflective Statement – In this section the overall learning outcomes from the research are being expressed in an elucidated manner.

1.8 Conclusion

Advertising is very much important to promote any particular goods and services among the consumers. It is a means of mass communication in order to reach among the masses. Advertising is said to be a form of non-personal communication as it is addressed to the customers. Advertisement is carried out in various sectors by firms to inform the buyers about the usefulness and benefits that they could attain if they purchase a particular product. So, it is very much vital that the information provided should be complete and factual. Any type of advertising process main attempt is to convert the prospect into its customers and thus is called to be a kind of an indirect sales and the company using this promotional tool expects to build up a favorable approach of the product that could lead into positive actions by the buyers. It also helps in creating a good brand image of the company and also aids in providing knowledge and assistance to the customers.

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  • Belch., 2003. Advertising and Promotion. 6th ed. Tata McGraw-Hill Education.
  • Gronroos, C., 1993. A Service Quality Model and its Marketing Implications. European Journal of Marketing, 18(4), pp.36-44.
  • Macruray, I., 2009. Advertising. Taylor & Francis.
  • Shimp, A. T., 2008. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. 8th ed. Cengage Learning.
  • Tellis, J. G., 2003. Effective Advertising: Understanding When, How, and Why Advertising Works. SAGE.
  • Vilanilam, V. J., and Varghese, K. A., 2004. Advertising Basics!: A Resource Guide for Beginners. SAGE.
  • Winer, S. R., 1999. Experimentation in the 21st Century: The Importance of External Validity. Journal of the Academy of Marketing Science, 27(3), pp.349-358.
  • Tayie, S., n.d. Research Methods and Writing Research Proposals. Pathways to Higher Education.
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