Relationship Between Sales and Advertising
Table of Contents
1. INTRODUCTION 1 2. RELATIONSHIP BETWEEN SALES AND ADVERTISING 2 3. MEASUREMENTS TO EVALUATE ADVERTISING EFFECTIVENESS 7 4. CONCLUSION 9 5. REFERENCES 9
1. INTRODUCTION
Today, advertising appears everywhere; we see and hear a lot of advertisements on TV, newspapers, magazines, internet, billboards, public transports and so on. The more popular advertising is, the more important role of advertising in business is reinforced. The main aim of advertising is to build customer’s attention to a brand or product, then may lead to brand awareness, brand loyalty or increasing sales volume (Corkindale, 1983). Although the role of advertising is undeniable, the effectiveness of advertising is still hard to measure. People usually think that sales volume is the direct and appropriate tool to measure advertising effectiveness, while the others argue that advertising is used to gain brand awareness and brand loyalty as well, not only increasing sales, thus sales is not the appropriate way to measure advertising effectiveness. For many years, influential writers on advertising argued that sales were, for practical purposes, an irrelevant measure of advertising effect. This argument comes from the fact that the relationship between advertising and sales has long been a subject of controversy and research as has the relationship between profits and advertising. This paper will indicate the relationship between sales and advertising to find out whether advertising impacts sales volume, and then introduce some other measurements to evaluate advertising effectiveness. 2. RELATIONSHIP BETWEEN SALES AND ADVERTISING
The relationship between sales and advertising has been a topic of argument and research for a long time since 1942 (Marquardt & Murdock, 1984). The inquiry about this relationship probably comes from the question about advertising’s ROI and how to measure the profit advertising brings to business; and because it is hard to
1. INTRODUCTION 1 2. RELATIONSHIP BETWEEN SALES AND ADVERTISING 2 3. MEASUREMENTS TO EVALUATE ADVERTISING EFFECTIVENESS 7 4. CONCLUSION 9 5. REFERENCES 9
1. INTRODUCTION
Today, advertising appears everywhere; we see and hear a lot of advertisements on TV, newspapers, magazines, internet, billboards, public transports and so on. The more popular advertising is, the more important role of advertising in business is reinforced. The main aim of advertising is to build customer’s attention to a brand or product, then may lead to brand awareness, brand loyalty or increasing sales volume (Corkindale, 1983). Although the role of advertising is undeniable, the effectiveness of advertising is still hard to measure. People usually think that sales volume is the direct and appropriate tool to measure advertising effectiveness, while the others argue that advertising is used to gain brand awareness and brand loyalty as well, not only increasing sales, thus sales is not the appropriate way to measure advertising effectiveness. For many years, influential writers on advertising argued that sales were, for practical purposes, an irrelevant measure of advertising effect. This argument comes from the fact that the relationship between advertising and sales has long been a subject of controversy and research as has the relationship between profits and advertising. This paper will indicate the relationship between sales and advertising to find out whether advertising impacts sales volume, and then introduce some other measurements to evaluate advertising effectiveness. 2. RELATIONSHIP BETWEEN SALES AND ADVERTISING
The relationship between sales and advertising has been a topic of argument and research for a long time since 1942 (Marquardt & Murdock, 1984). The inquiry about this relationship probably comes from the question about advertising’s ROI and how to measure the profit advertising brings to business; and because it is hard to
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