New trends in advertising - Research Paper Example

New trends in Advertising Currently companies are investing huge budgets in rebranding their s or products to accord to the new dynamics in the market. Companies have several reasons that may lead to rebranding of the company’s name or product. For example, Eliot Spitzer was reduced to tatters in 48 hours in 2008 after leaked information that the governor had patronized a prostitution ring. Once a famous and a rising star, Spitzer is currently trying to rebrand his name in the public image (Mendelson, 2010).

Domino’s Pizza had to release a new- and improved Pizza in January this year to what they termed as customer’s requests in the market. The company’s efforts in rebranding the pizza and advertising are currently paying off ( Mendelson, 2010). In addition, in September, Apple CEO Steve Jobs unveiled a new revamped logo that would accompany the new version of the company’s music downloading services. This change took the market by surprise with customers responding positively, increasing the company’s sale for the month (Mendelson, 2010).

Generally, companies and individuals in general have taken an initiative to change the perception of customers in the market, either due to negative image created in the market, or to increase sales by revamping a new spirit in the company’s product. As Mendelson (2010) argues, some companies have undertaken to change everything from the products, the names to the packaging in a complete new image of the company. Such was the case with Campbell’s Soup after a dip in U.S soup sales. However, according to Michelson, consumers have not responded positively to these changes and are still lukewarm to the company’s products.

Therefore, according to these examples companies have adopted the view that customers are more susceptible to the company’s image through the product, and breathing a new life in these products would increase sales for the companies. The above view has been taken by many multinational leading companies, which have undertaken to formulate products and advertising campaigns according to the market in question. The difference in perception in markets and the need to increase sales in these markets led Coca cola company to give freedom to its local subsidiaries to develop advertising campaigns for local customers and make brands that would respond in particular market (Muhlbacher, Leihs & Dahringer 344).

This is because millions of customers worldwide do not consume products by companies, but consume brands. This means that the images that are created in the minds of customers are more important in creating customer’s loyalty as compared to the quality of the actual product (Bris, Smit & Sorell, 2). The huge budgets that companies have to use in branding and advertising are required to create this image that would be appealing in the customer’s mind, and this would lead to formation of a positive image concerning the company and its products by consumers.

These images are responsible for customer’s loyalty and explain why brands such as Coca Cola, Toyota, Nokia, Samsung and others are more common in developing customer’s loyalty as compared to other products. In most cases customers do not buy products or quality in these products, but buy the brand image of a company through a product. This is explained by the fact that companies or individuals who have a negative image portray declining popularity among customers despite their quality or services.

Leading companies such as Samsung and Toyota heavily utilize this principle and create products that create a perception of being superior and that would attract customer’s attention, and this leads to increased customer’s loyalty to these products. This is clear from the rebranding of the iTunes downloading by Steve jobs in Apple Inc. Therefore, customers are more interested in the image of the company and not the quality that such products would provide. This is the ideal behind rebranding.

Work cited Bris, Arturo, Smit Willem, and Sorell Michael. The value of a global brand: is perception reality? Yale International Center for Finance, 2011. http://www.arturobris.com/brands.pdfMendelson, Rachel. The rebranding. Canadian Business. 83.19 (2010), available through Academic Search complete. Muhlbacher Hans, Leihs Heilmuth, and Dahringer, Lee., International marketing: a global perspective. London: Thompson Learning, 2006.