Worth of advertising cannot, and should not, be solely measured and monitored on revenue and increments in sales. Relationships between increased advertising expenditure and activity, and static or falling sales, may be casual rather than causal.
The appropriate and actual role of advertising content is to advertise. Seldom is it, in isolation, to achieve and conclude sales. That is the role of the sales function and sales functionaries. They have key complementary and supportive roles to advertising. So too do the initiatives centred on public relations, promotions, merchandising and service.
It seems incomprehensible that, in periods of declining demand, increased competition and slowing sales, that some managers will simultaneously decrease advertising, while reducing staff numbers, inventory, promotional, public relations, merchandising and service activities, with the objective of generating more sales, revenue and profit.
Little wonder then that some advertising professionals feel exposed, vulnerable, isolated, misunderstood and inappropriately utilised.
The marketing discipline has 20 components, of which advertising is just one. Inter-changeability in the use of the words and disciplines of advertising, sales, promotions, merchandising, public relations and service is common, but fundamentally flawed. They should be complementary, integrated and interactive. Only then can opportunities, sales, revenue margins and profits be optimised.
Further impact, resonance and relevance can be achieved with the recognition, respect and application of a natural sequential flow between those different dimensions.
I feel sorry, sympathetic and empathetic for those who do not understand the nature of advertising, rather than for those enduring poor sales, revenue and profit. The latter measures are often a consequence of the poor use of the former – ie, advertising.
Barry Urquhart runs Marketing Focus and is a business strategist, consumer behaviour analyst and keynote speaker. He can be contacted at Urquhart@marketingfocus.net.au or on 0419 835 555.
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