In a recessive economy, your business image will play a large role in the amount of business you receive. For instance, if the consumer feels that your business may be on the verge of shuttering, they will be less likely to buy from you – even if you slash your prices. This is because the consumer wants to know that you will still be around to support them if the product breaks, needs repairs, or needs accessories. The opposite is also true – businesses that appear to be thriving tend to attract even more business because they inspire confidence in the consumer.
One of the main ways that a business can appear successful is through how often they advertise. The more that a business is seen in the marketplace, the more successful a business image the company will have. If clients continuously see you on TV, in the newspaper, in brochures, and on bumper stickers, they will start to see you as a thriving and credible business.
Think about the ads that you have seen on TV recently. What company do you think of first when you think of cell phones? How about cars? Running shoes? Chances are the company that you think of first (which will also be the one you are most likely to buy from) is the one that you have seen and/or heard of the most through advertising. They may or may not have the best product, but they are the best at advertising what they do.
What the Masses Know
When you think of the population of the market, there is quite a range of people of all types of different backgrounds, economic status, intelligence, ages, and genders. Yet, on average, the market as a whole tends to make good buying decisions.
Advertising costs money, and therefore people know that if a company can afford to advertise, then it must be doing well. For the company to do well, other people must be shopping there, which means that it is a good idea for you to shop there as well. Now it becomes a self-fulfilling prophecy.
Advertising tells the market that you exist, and the more advertising you do, the bigger the presence you have in the market. As long as you can prove the claims in your advertising, advertising frequently will cause your business to be successful.