direct and indirect advertising and communication effect

The effect of advertising is for long run, advertising is attempt to influence the need to be analyzed, visiting to retailer, trying a new brand, increasing usage level, maintaining existing brand loyalty, the communication and the decision process that proceed and influence that behavior must be examined. The process of communicating is to aware, image or attitude and specified the target segment needs. The segment defining the variable that include usage, benefits sought, awareness level, brand perceptions and life styles. Any advertising objective involves a communication task something that advertising can reasonably hope to achieve by itself. Communication is intended to create awareness, impart information, develop attitude or induce an action.

Manufacturer face two marke segment, consumer know only one brand is an exclusive segment and purchase only the known brand as long as prioce is below, they are price insensitive. where competing segment consumers know about different brands, They are price sensitive. Under the indirect channel scenario, manufacturers and retailers are private owned profit maximizers. The manufactures who decides the advertising level should also bear the ads cost.