| Pepsi is an interesting case for the ineffectiveness of advertising in general. I find it hard to believe that television or other advertising for a product like Coke or Pepsi makes a big difference in sales. I'm already aware of the products, I already have my opinions on them, and they aren't going to change them. If these companies stopped advertising tomorrow I don't think there would be an immediate effect on consumer behavior. For a while I was a heavy drinker of low carb Monster. One day I saw the can, thought I'd try it, decided I liked it, and then I bought it frequently. I hadn't seen a single ad (or promo) for Monster until years after I'd gotten sick of it. What would happen is that the channels they sell through would notice that they weren't being so aggressive about marketing. The channels might think they are less serious and then they wouldn't work so hard to promote those products. I know somebody who sells newspaper advertisements and when people ask the question "For what a postage stamp sized ad costs in the paper for a year I could rent a storefront or hire an employee so why do I need to spend money on you?" he gives them the answer that people who are used to seeing your ad in the newspaper might think you went out of business if the advertisements stop. That's how sick the advertising business is in 2013. |