To understand the micro and macro economic impact of advertising, you must first understand the micro-economic impact that marketing can have on your business. Marketing can be defined as anything that creates a perceived value or importance to a person, an entity or an industry. Marketing is the means by which the marketer brings the product or service into existence so that a customer perceives it as being worth spending their money. Marketing creates the perception of worth and therefore creates the value of the product or service.
Marketing is a powerful tool that can create or destroy an entire enterprise, but it is also an extremely useful tool. It is essential in today's economy for businesses to utilize all resources available to maximize the value of their marketing dollars and minimize costs.
Advertising has two primary purposes, the first is to inform or attract customers, the second is to persuade consumers to make a purchase. An ad has two parts, the headline and the body of the ad. The headline creates the perception of the value and importance of the product or service being offered.
The next element of an ad is the copy or the writing that goes along with the headline. This writing contains information about the benefits of purchasing the product or service being advertised. The copy of an ad is written to convince the reader to make a purchase, or at least take action to purchase a product or service being advertised.
The third part of the ad is the benefits of the product being advertised. In advertising today, many companies use a product or service and then present the benefits of the product. This gives the reader the impression that the benefits of the product are worth the cost to produce the product or service. In a micro-economic impact of advertising scenario, this could lead to lost sales due to the loss of consumer confidence. In a macroeconomic impact of advertising scenario, the lost sales could lead to loss of jobs, higher prices or a company becoming bankrupt due to lack of funds for expansion or research and development of the product.
So while advertising can help businesses in building a strong image for the products or services they offer, it is important for businesses to ensure that they are maximizing the impact of their marketing dollars. The key in advertising is to find ways to create a compelling message that will persuade the reader to purchase the product or service being advertised. A powerful headline and compelling copy will help a business to create a message that the reader will take action to purchase their goods or services. To find out more about micro and macro economic impact of advertising for your company, contact us today.