Dovga A.O., Ryeznik M.A., Derevyanko M.M.

Oles Honchar Dnipropetrovsk National University, Ukraine

THE INFLUENCE OF ADVERTISING ON BUSINESS

Advertising is an important factor in the modern economy. It serves as fuel in motivating buyers as well as supporting sellers. It is impossible to imagine our television, newspapers, radio, Internet and even streets without advertisements. Nowadays advertising plays an important role in modern life and in the life of every person.

Advertising has had a tremendous influence on society. However, many people sharply disagree as to whether this influence has been bad or good. Advertising has certainly played an important part in making modern goods and services available to the general public. It hastened consumer acceptance of such new products as automobiles, telephones, electric refrigerators, and frozen foods. Advertising continues to popularize new products of modern industry by presenting them in colorful phrases and glamorous illustrations. It seeks to make each product represent a new and better way of life. In its total effect, advertising has built up a concept of gracious living that was unknown and indeed impossible before mass production.

Advertising has the potential to influence every aspect of a business. As a communications tool, ads are used to reach a diverse mix of people affected by the products or services. These audiences can include not only customers, but also employees and investors. From employee management to customer relations, companies rely on effective advertisements to influence the success of business.

Advertising is a communications tool used to market a product, value or service. A common misconception is that advertising and marketing are the same elements. To clarify, marketing is the overall strategy that organizations develop to enhance perceived value and persuade consumers toward a purchase decision. Advertising is one of many marketing tools used to communicate and persuade. It can be a stand-alone element or combined with a larger marketing mix. The general purpose is to influence behavior toward supporting a business as an employee, investor or customer. Here are some examples of where advertisements can be placed: traditional media – newspapers, magazines and television; new media – online, mobile applications; high traffic areas – billboards, sign twirlers; office space – internal posters.

Advertisements are consumer focused to influence frequent shopping, enhance corporate reputation and increase sales. In addition to these benefits, the results of a good advertising program will also increase the demand for a product or service, gain more control of the market and bring in new customers. If businesses fail to gain new customers and obtain repeat business, there is a risk of losing money due to a decrease in sales revenue. Moreover, the success of a business is heavily influenced by an effective advertising platform.

Advertising at its basic raw form is persuasive communication between a service provider and an audience. Advertisers working through ad agencies with the help of graphic designers and media specialists to develop a themed message promoting a product or service aimed at a targeted audience using the best mass media channel. Advertising makes use of print media like magazines and brochures; interactive media like web casts, web video, TV ads and radio ads; direct mail; and outdoor advertising like billboards. New media advertising using Google AdWords or Facebook ads on websites bring targeted marketing messages to vast numbers of potential customers at a low cost via the internet.

Companies rely on their ability to recruit qualified personnel. Advertising programs help establish a reputation that attracts employees who would be a right fit for the company. Every progressive business with an internal advertising campaign reflects the image, beliefs and culture of the company.

If the advertising is ineffective, candidates and new employees may not know how to determine if their skills and experience fit the needs of the company. As a result, a business can spend more time and money on the development of their employees or face a financial loss due to employee terminations. Advertising programs can provide candidates with insight to company expectations, as well as give the business leverage on attracting the best talent.

Advertising to enhance investor relations is relevant for businesses whose shares are traded on a public stock exchange. If advertising has effectively increased sales, investors' interests are fueled and the enterprise value has increased. Business benefits include a boost to stock value, a reduction in capital costs and stability in financial projections. When advertising does not influence business growth, the strength of the company may be questioned. Investors base their decisions to support a business based on financial expectations.

Public relations and advertising are vehicles for managing the public relationships for non-profits, celebrities and business to internal and external audiences. Common to public relations are speaking events, media relations, crisis communications, employee communication and social media engagement. Using print ads, focus groups, brochures and other advertising media, public relations consultants take the business message to consumer groups. As part of the public relations group, the corporate communications group might include analyst relations, media relations, investor relations, internal relations and labor relations.

Benefits of nonprofit advertisement. A good corporate reputation influences community support through influential advertising campaigns. Public and community relations are examples of cause-marketing initiatives that can influence community support and are enhanced by commercial advertising. If a business has not promoted a positive image through commercial advertising, nonprofit agencies may not benefit from the partnership and choose not to publicly endorse the business. However, an effective advertising campaign can attract and gain the support of nonprofit agencies, leading to community awareness and support of the business.

Advertising flourishes mainly in free-market, profit-oriented countries. It is one of the most important factors in accelerating the distribution of products and in helping to raise the standard of living. Advertising has an important role in informing and influencing consumers. Virtually every individual is exposed to advertising. It has become one of the most important economic and social forces in society. Partly because of the influence of advertising, people have learned to want ever better products and services, to take better care of their health, and to improve their way.