A 6 essay?

[mntrlgmat]

Hello everyone.

Below is my essay for one of the issues.

Any chance this is enough to earn a 6?

Any form of feedback would be appreciated.

"All companies should invest heavily in advertising because high quality advertising can sell almost any product"

Discuss the extent to which you agree or....



Most financial managers, whether at large corporations or small businesses, must decide on the level of advertising, if any, they wish to invest in. One school of thought on this issue is that all companies should invest heavily since high quality advertising can sell almost any product. While it is true that heavy advertising benefits many companies, I disagree that all companies should invest heavily. I believe that many factors contribute to this decision and companies in different circumstances should adopt different advertising strategies.

First, the type of product or service that a company offers should play a significant role in the level of advertising that a company chooses to invest in. Different products require different marketing strategies and hence different levels of advertising. For instance, a large car manufacturer would require a combination of radio, television and print advertising to be most successful. On the other hand a government-run institution such as a public library would benefit very little from heavy advertising, if any at all. Furthermore, different companies require different types of advertising and since different forms of advertising are not equally expensive, it is likely that some companies can achieve their advertising goals without incurring heavy expenses.

Second, the stage in the business cycle that a company is in should also play a role in the decision concerning the amount of funds allocated to advertising. A company in the early stages of its business life cycle may choose to invest heavily up to a certain point to create awareness of the product. Once that product is well established in the market, the company may benefit more from allocating more resources to functions other than advertising. Perhaps at a certain stage, a company would benefit most from adopting a mass scale production strategy that would require cutting costs; heavy advertising at this stage would go against the company’s goals.

In conclusion, while some may argue that heavy advertising is appropriate for all companies, I take a different stance – I believe that each company should decide on the appropriate level based on many different factors including the type of product offered and the stage in the business life cycle. While I do believe that heavy advertising benefits many companies, I nevertheless disagree that all companies should invest heavily in advertising.