Smaller profit margin

Last Updated: 28 Jan 2021
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Advertising puts up the price of things we buy This is true mostly but it is sometimes not the case. Companies will need to pay for their advertising but some will advertise without putting up the price of their products, but most will, as they need to regain the money spent or end up with a smaller profit margin. Some companies will not increase their costs however in order to keep competitive with low prices. Examples of companies that will not increase prices due to a new advertising campaign are

1. ) Asda, they actually lower their prices in the advert as an incentive for people to shop there, this is a great example of an advert that does not increase their prices. Their adverts may be cheaply made so they do not need to increase prices to get a higher profit margin as more people will buy their products as they have seen the adverts with the cheap prices. 2. ) Cadbury, this is another company that will not have to increase prices to pay for their advertising budget.

Their adverts are on 16 times a week, because they advertise 4 times each episode of Coronation Street, which is on 4 times a week, each time they advertise it costs them i?? 75,000 for one minute, this soon adds up to i?? 62,400,000. 00 a year. But because they have a high brand loyalty they can spend this without increasing their products' price. Because people buy Cadburys because it is one of the worlds best known chocolates. But some companies will increase their prices dramatically from advertising campaigns

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3.) Curry's raise their prices for their products in order to fund their advertising. But although the advert shows the prices of products falling they raise the prices of all of their other products, this is due to the need to fund the adverts for a higher profit margin for the company. 4. ) Guinness have risen their prices tremendously after the advert involving the horses and also the one with the squirrel in the pub. These adverts were voted the best of all time and cost a lot of money to make, they had to increase their prices if they were to make a profit at all.

Overall companies will increase their prices after an advertising campaign so as to achieve a higher profit margin and to get the money back after the advertising campaign. The companies that don't are high-ranking companies that can afford to rely on high brand loyalty to raise their profit margin. Companies such as Cadbury will not increase product prices for advertising campaigns. Advertising helps people aspire to a more fulfilling lifestyle This is again both true and not true. It really depends on each person's idea of fulfilment and Maslow's pyramid of needs, Self-actualisation as well, this is what Maslow saw as ultimate fulfilment.

People are fulfilled in different ways, for some people fulfilment lies only in money, for others it is the satisfaction of what they do and their livelihood. For example, some people may after a bit of spending may become more and more materialistic and want more and more, this means that they will never be truly fulfilled as advertising tells them of new things. Fulfilment varies form person to person and you cannot say all people are fulfilled and motivated by the same things. Examples of when people are told by advertising they are not fulfilled are :

1.) Games consoles, some game previews say games now will "change your life" this is exaggerating too much and says that you need these games and consoles if you to ever be fulfilled in life. X-Box adverts show the man flying and are showing you will never be truly fulfilled unless you own an X-Box. They are meant to be entertaining and not to affect your life, you may feel partially fulfilled, but not truly. 2. ) However this only shows one kind of fulfilment, another kind is in your livelihood not your wallet. The NHS adverts tell you that a career in the NHS can be fulfilling as you may feel like you have made your contribution to the world.

This is not always true, but this fulfils some people but not others. It depends what kind of a person you are. The same can be applied to BUPA or teaching. However there are some adverts which do not demonstrate fulfilment such as 3. ) The NSPCC advert shows the exact opposite with the child being thrown around. Neither of them is fulfilled, and will not help others watching become fulfilled by this advert. This will not fulfil many people, it may affect your life as a viewer slightly but not entirely, you will not be fulfilled by this advert. 4. ) The NHS smoking advert, with the guy on the sofa, who talks about how he has lung cancer.

This will not fulfil anyone as listening to someone talk about lung cancer may affect your life, the advert will not help you reach self-actualisation, which according to Maslow is the ultimate fulfilment. Overall adverts are made to attract to a product, which are supposed to help you reach self-actualisation and fulfilment. However most adverts are not persuasive enough or we don't have enough money to buy on impulse. So adverts are made to fulfil us but in the end will not, they will try to fulfil us by making us buy that companies product but we will not just buy on impulse.

Advertising exploits people's anxieties and inadequacies. This depends on a few issues, which will affect to a person whether or not that advert can be entertaining. - The person's taste, different people have differing views on what is entertaining and what is not. - How many times the advert is shown or spoken, if an advert is shown/spoken too many times then it may become irritating and may put you off the product - The time the advert is shown/spoken at. - The media which you are relying on for your advertising, EG TV or Radio. Examples of adverts that are entertaining are :

1.) The Imperial Leather Duck advert with the dancing duck in the shower, this I find very funny to watch, as it is amusing and is not shown too many times, if it was shown over and over again in one hour then it may become irritating. However it may be just me who finds this amusing, other people may have different views. 2. ) The new Fox Mints advert with the fox attacking the bear, I also find this amusing and it's not shown too much, although it doesn't advertise the product well it is a funny advert and can appeal to all audiences young and old, even with differing views on comedy.

The problem with both of these adverts is that they both don't advertise the product well but as adverts they are amusing, this may entice you to pick the product up and try it, but not as much as a usual advert. Some adverts do the opposite to this though, examples of this are : 3. ) The Guinness horses advert, with the surfers and the horses. This advert although it was good the first few times, after a while became quite annoying. It may be good for demonstrating computer graphics but apart from that it doesn't advertise the product and is on so much it is annoying.

4.) The Hovis advert with the two kids arguing becomes annoying as well as it is shown over and over again. Although funny at first, after a while of the same advert it becomes repetitive, boring, and may in the end put you off the product. This is the sort of tactic companies want to avoid. Overall you cannot say whether advertising is entertaining or not as it varies from person to person, which advert it is, which media it is on and how many times the advert is showing. Each person will have differing views on advertising and on whether it is good or bad, you cannot define a whole race with either yes or no.

Advertising is irritating This is again anther question, which is dependent on a few variables, much like the previous question. This is dependent on : - How many times the advert is shown/spoken - Which media it is - The person listening/watching the advert - The time of day/night the advert is shown/spoken at These factors will affect whether or not an advert is irritating or not, and whether it is entertaining or not. Examples of adverts that are irritating are : 1. ) The Flash adverts, these do not change from advert to advert and just show the same thing each time, something to clean the bathroom.

The adverts may be new to the company but to the audience we have seen these over and over again. The adverts are also played again and again and become irritating easily. 2. ) The Police advert with the celebrities who claim they couldn't do a policeman/policewoman's job. This advert strikes me as irrelevant, we don't need to know what they can and can't do, and for a police force that is supposed to be having problems this seems like a waste of money. Although not shown often, once or twice is enough to make this advert annoying.

However not all advertising is irritating, some can be amusing and entertaining. 3. ) The ITV digital advert with Johnny Vegas and the monkey are hysterical, they aren't shown too much and although they don't actually advertise the product they are amusing, this is just my personal opinion, other people may find this irritating. The new advert advertises the product as well as being funny. 4. ) Another advert, which is amusing, is the Malibu advert with the Caribbean people in, with the line, "Is your mother proud of you ? ".

This makes me laugh every time and although somewhat stereotypical and racist, there is no intention of this advert to be hurtfully racist in any way. This is again only my opinion, other people may feel this advert is really annoying. Overall you cannot say whether advertising is irritating or entertaining. You cannot do this because of the four factors that I put forward earlier. You cannot define an entire race's feelings and emotions towards advertising in either yes or no. There would have to be an answer in the middle, people are individual and so are their tastes and opinions.

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Smaller profit margin. (2018, Aug 09). Retrieved from

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