How much should you spend on marketing?

The aim of advertising is not to state the facts about a product but to sell a solution or a dream. A Ferrari automobile delivers on three dreams: social recognition, freedom, and heroism.

Ads primarily create product awareness, sometimes product knowledge, less often product preference, and more rarely, product purchase. That’s why advertising cannot do the job alone. Sales promotion may be needed to trigger the purchase. A salesperson might be needed to elaborate on the benefits and close the sale.

Most ads are a waste of the company’s money and time. Most ad agencies blame the lack of creativity on the client. Clients wisely ask their agencies to come up with three ads, from mild to wild. But then the client typically settles for the mild and safe one. Thus, the client plays a role in killing good advertising.