Marketing and Advertising

In today’s highly competitive business world, having the right marketing strategy to create a competitive advantage and maintain an effective presence in the market is essential for planning in every production, service, or commercial unit.
Naturally, the most effective marketing technique should be planned through targeted and efficient advertising to establish meaningful connections with the target customers.
Basically, marketing is a social process through which individuals and groups can achieve what they need by producing, offering, and exchanging valuable products and services.
Peter Drucker, as one of the pioneers of management theory, says: “The aim of marketing is not to make sales boastfully. The aim of marketing is to know the customer, understand them, and be able to offer a product or service that suits them.”
The ideal goal is for marketing efforts to result in the creation of a customer—that is, someone who is ready to buy.
However, one of the requirements for planning a successful marketing strategy is the precise identification of the target market based on the characteristics of the offered product.
And consequently, designing advertising methods to establish effective communication with this market.
The resources consumed for the advertising program are primarily spent financially in a way that maximizes efficiency in attracting active and loyal customers.
Advertising can be effective in introducing the brand of a production or commercial unit, and with continuous activity and the use of a well-known brand over time, it can become an intangible asset.
Brands like Samsung, Kaleh, and LG are good examples that offer their products under the reputation and recognition of their brand.
In some cases, advertising can focus on a specific product. Examples include Skechers casual shoes or the use of ERP software systems to improve organizational performance efficiency.
Naturally, a combination of product and brand can be the most common and effective type of advertising.
The required advertising budget and the choice of advertising type are directly related to the product type and the target consumer group.
Advertising methods through social media can be the most effective type of advertising relative to the costs involved, targeting a wider audience.
There is no doubt that expertise in this field, as one of the new managerial tools, requires mastery of new knowledge.
An important point regarding the determination and control of the advertising budget is how to classify the mentioned cost as either an operational expense or a capital expenditure.
Many organizations recognize all advertising expenses as operational costs at the time they are incurred in their financial statements, which, compared to the expense schedule, can act as a deterrent to allocating an appropriate and effective budget for advertising.
A detailed explanation is required to analyze the targeted nature of advertising expenses in terms of their operational and capital impacts, which may not have been adequately covered in this discussion.
In summary, it can be stated that advertising for a brand or product with long-term market presence should be considered a capital expenditure and amortized over time in proportion to the period during which its effectiveness and benefits are realized.
In this regard, the main objectives of an organization can serve as a suitable criterion for determining the time horizon in analyses, including the analysis of advertising costs in marketing.
I warmly welcome the opinions and suggestions of friends.