Answer to Question 1
Advertising can affect a brand in five broad ways:
By informing and persuading: Target audiences can learn about a brand's features
and benefits through advertising. No other variable in the marketing mix is designed to accomplish this communication.
By introducing new brands or brand extensions: Advertising is absolutely critical when organizations introduce a new brand or extensions of existing brands to the market.When brand extensions are brought to market, advertising and IBP play a key role in attracting attention to the brandso much so that researchers now suggest
that managers should favor the brand extension with a greater allocation of the ad budget. This is often accomplished with advertising working in conjunction with other promotional activities such as sales promotions and point-of purchase displays.
By building and maintaining loyalty among consumers: Loyalty to a brand is one of the most important assets a firm can have. Brand loyalty occurs when a consumer repeatedly purchases the same brand to the exclusion of competitors' brands. Even though brand features are the most important influence on building and maintaining brand loyalty, advertising plays a key role in the process as well. Advertising reminds consumers of those brand featurestangible and intangible.
By creating an image and meaning for a brand: Advertising can communicate how a brand fulfills needs and desires and therefore plays an important role in attracting customers to brands that appear to be useful and satisfying. It can also help link a brand's image and meaning to a consumer's social environment and to the larger culture, and in this way, advertising can actually deliver a sense of personal connection for
the consumer.
By building and maintaining brand loyalty within the trade: Wholesalers, retailers, distributors, and brokers can favor one brand over others given the proper support from a manufacturer. Advertising and particularly advertising integrated with other brand promotions is an area where support can be given.
Answer to Question 2
d