Why should I advertise? …everyone knows me!

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I faced a very interesting and intriguing question last week during my meeting with the top management of a closely held business house. The business, is profitable, on an expansive mode and holds good promise for the future. The business house, a leading player in its industry, is engaged in the services sector. Being a leading player in the industry, it is looked upon by other players in terms of its business moves – I mean who would want to reinvent the wheel when it already exists.

During my meeting with them, I was posed a question – I am the leading player in this industry…prospects know…competitors follow my strategy closely and try and copy…I drive a lot of industry business…then why should I advertise?

The question seems very logical considering that
  • The prospects and customers know about you
  • The market is expanding for your business
  • You are a leading and a respected player in your industry.
  • The business is profitable.
  • Your brand name is well known and definitely has a place in Top of Mind recall

My viewpoint is that
Ø  The market isn’t static…it is constantly undergoing change…new prospects…new competitors. The customers are always looking for better alternatives and their preferences keep changing. The competitor set of today need not necessarily be the same tomorrow – it might also change.
Ø  The factors beyond your control, externalities, are always at play – at times in your favour and at other times not so favourable.
Ø  You need to constantly communicate with your prospects and customers because they are being constantly reached by your competitors. The messages from your competitors will aim to try to drive your customers and prospects away from your brand and to capitalize on them. If we stop communicating with our customers / prospects, we only end up making it easier for the competitors to wean them away.
Ø  While today I might have a brand which is relevant to the customers, it is not a surety for future – relevance and irrelevance always have a time axis.

The fact is that advertising is not the only way to communicate but then if the brands are
  • in businesses engaged in services sector
  • targeting a sizeable community of prospects who are
  • spread across geographies
  • requiring repeated and regular communication and
  • constantly reached by other brands within your industry,
then advertising is comparatively better option of the communication mixes available.

By: Sumit Singh
Dated; 10th February, 2013

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