The Impact of Advertising on Business Competitiveness and Security

Abstract

The aim of the article is to prove the relevance of the use of advertising technologies by market participants in order to strengthen their positions, in particular to increase the level of competitiveness and ensure greater economic sustainability. The article discusses the functions performed by advertising in the context of marketing and business, as well as the benefits that the enterprise receives from conducting advertising campaigns. The direct advantages of the participation of establishments in advertising activities include: increasing sales, attracting new customers, creating a positive image, increasing brand awareness, and increasing customer loyalty. The indirect advantages include: strengthening the competitive position of the enterprise and strengthening the level of its economic security. The impact on the level of competitiveness of the enterprise is carried out due to the stimulation of demand and increase in sales, creating a positive impression of the brand and building trust in the company, retaining and developing a customer base. On the way to ensuring the economic sustainability of business, advertising becomes a factor in neutralizing marketing risks. Market risks associated with the assessment of market capacity can be reduced by increasing the value of the product, attracting the attention of a different audience, and promoting it in a different target market. The risks associated with the actions of competitors require the intensification of advertising activities, the promotion of the competitive advantages of the product/establishment, and the use of aggressive advertising. The risks associated with changes in demand are partially overcome by positioning and repositioning. The formation of brand value and business reputation through advertising can reduce both the image risks and competitive risks. By forming demand, adjusting it to unforeseen changes in environmental conditions, stimulating sales, advertising motivates consumers to buy goods, thereby activating the processes of buying and selling and, as a result, accelerating the turnover of capital. Therefore, knowledge of advertising technologies and their skillful use is one of the levers of influence on the level of competitiveness and can be used to increase the level of economic stability of business.

Keywords

• advertising
• advertising technologies
• competition
• economic security