Why Companies Spend Big Budgets On Marketing

I’m quite sure that you have asked yourself that question at some point or another. Truth be told, it is interesting to note that, logically speaking, there shouldn’t be any reason for someone with a huge budget, especially big companies like Coca-Cola to constantly advertise their product.

After all, we all know what Cola is, how it tastes like and where to get it, so why the heck does their advertising team ostentatiously throw money down the drain?!

To really get an accurate answer to such an inquiry, we will have to look at several features, starting from the human psyche to the ways our social influences compel us to act in certain ways.

Let’s start with the way the human brain works: Nobody wakes up, gets out of bed and spends twenty minutes of their time thinking about a product they saw on TV three months ago.

This goes to say that our attention spans are extremely limited and oftentimes, we are too caught up in the now to really ponder on other things.

That means that if I, as an average human being, just woke up, I will probably think about how long I have till I have to go to work, what’s on the menu or what problems I have to deal with.

This leaves almost zero room for your product, as it just doesn’t hold any immediate importance to our mammal brains.

Until, you guessed it, we see an advertisement for the product.

That sets a motion in tact which starts turning our gears, reminding of us of our connection with said product: When we used it last time, how much it costs, what it tastes like…

As we can see, even without our conscious consent, a shift in our thoughts is already transpiring.

We might not go out and immediately decide on a purchase, but that product is now part of our headspace and that my friends, is what advertising is all about.

The goal of a company is for their product to become an integral part of your life, without you ever realizing or questioning it. This might sound a bit grim, but if we imagine your unwillingness to tolerate ads to be your immune system and the ads being viruses, then picture what would happen if viruses found a way to mimic your bodies bacteria!?

Exactly, they wouldn’t get killed by your immune system!

The same goes for advertisement and as people are becoming more and more resilient towards the traditional marketing spiels we remember watching on our state-of-the-art TV screens, so does the game of advertising fundamentally change.

This has precipitated the birth of experiential marketing, where the goal of an advertiser is to turn their product into something the end-user will have a deep and long-last emotional connection too!

To keep to the point, another reason why huge budgets are being spent is creating an illusion of scarcity.

Let me explain it a bit more in detail; You see, consumers most often stick to one brand and one brand only. That doesn’t mean that their choices can’t be altered but believe me, this is why the big brass suck up all the advertising space.

If you, as a consumer, crave for a soda, how many different sodas are you going to be able to name?

‘’Easy pickings, I know a lot of sodas! There’s Cola, Pepsi, Fanta, Sprite…’’

What if I told you that three of these products are owned by none other but the Coca-Cola company and PepsiCo, the progenitor of Pepsi and a few other, well-known products such as Frito-Lay, Tropicana, Gatorade, and Gatorade.

Here’s an even better example, let’s take the outrage by consumers when they heard that Nestle peddled and sold baby food, instead of letting people do it the natural way.

When water supplies got scarce, Nestle simply moved away, leaving thousands to starve.

A huge campaign was launched to boycott all of their products, but people soon realized that it wasn’t as easy as imagined.

They literally own a product in every niche, same as the other big companies, creating a false illusion of choice, with there being none.

Do you know why HudsonDrink never made it as an option in your bucket list? Because the bigwigs controlling our advertising space bought out all the available ads!

I hope that this article has brought you a bit closer to the truth and made you realize just how tight-knit our choices really are.

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