Why do some huge corporations like Coca Cola or Mcdonalds need to advertise?

Question

I mean who does not know about Coke, or does not eat in Mcdonalds?

Answer 1

to keep interest in new products - and also - to try to keep on top and one step ahead of the competition.

Answer 2

I saw a lecture in college by a regional marketing executive for Pepsi and this question was the number one question from the audience. The answer is that marketing studies and focus groups research show that about 25% of people prefer coke over pepsi, 25% prefer pepsi over coke but 50% of people don't have any preference at all. So, since people have short memories and basically will just drink whichever cola they come to first they need to constantly reinforce their message to drink pepsi. The other reason is that coca cola and mcdonalds are products whose customer market spans pretty much all ages, classes and races so the more people they can reach through advertising the more customers they will have. Also, consumers are a much larger customer base than say businesses so sellers of consumer goods will have to spend more to reach their customers especially when the customer base is as wide as coca cola or mcdonalds. I have heard that pharmaceutical companies spend some of the highest percentages of their expenses on marketing of all industries but I think that some consumer foods are probably close behind.

Answer 3

Some of us don't know about the new products and it would take something to make us try them. I own stock in MCD but don't eat there, when I started going there they had 19 cent burgers, shakes and fries and you got change from a dollar. Now they have salads and chicken nuggets and things so someone who might have tried then in the 60s and didn't care for the burgers might try it again when told they have salad with fruit and walnuts. Now they are trying to become more into high end coffee so by hearing the ad I might go there when traveling. Besides advertising for customers it is a way to let the shareholders know it is being actively changed with the times. I tried the milkshakes in the 80s and the recipe was bad non dairy stuff I won't drink, I get one about every 10 years to see it is improved if they advertise a new old fashion shake I might try again.

Answer 4

Cigarettes have the highest "brand loyalty" of any product in America, meaning that if the store is out of their brand, they'll tend to visit another store before buying a different brand.

Beer is second.

I don't know where "fast food" and non-alcoholic beverages are on the list, but it's pretty clear that they have a need to keep persuading people to buy their product over a generic one.

Who doesn't know about Bayer aspirin? But folks buy other pain relievers instead, because if you go to the store looking for a pain reliever and see "Bayer", you might think to yourself "Huh. They still make that stuff? Or is that box ten years old?" and reach for something else.

Consumers have short memories. What'd you have for lunch last Thursday?

Answer 5

It is well known that all successfull comapnies dealing with consumer brands need to keep advertsing for two key reasons:
1. Keep the brand the #1 choice for consumers. For example when someone feels like a soda they need to think Coco Cola first not pepsi or some other brand.

2. This is also to keep entry barriers high for new competition.

Answer 6

Because they have competition.

Answer 7

to emphasize their brands.