Advertising as an extension strategy

Advertising is an extension strategy that uses promotional activities to remind customers about an existing product and its benefits, aiming to keep sales steady or push them up. It is not the same as a sales promotion such as a two-for-one offer: advertising communicates a message rather than giving a short-term deal.

Advertising can be aimed at a particular group. If a board game's sales are falling only among families with primary-age children, the maker could advertise in a parenting magazine or on a family film channel. This focuses the budget on the customers whose buying has slipped, rather than paying to reach everyone.

Working alongside other strategies

Advertising can be used alongside another extension strategy, or to promote a change made through one. For example, if a backpack has been given a stronger zip, an advert can show that improvement and remind buyers why the backpack is useful.

Its main advantages are that it reminds people what the product does and why it is worth buying, and it can be targeted at a specific market. A campaign can therefore be more relevant than a general message.

Drawbacks to weigh up

• Campaigns can be expensive, and there is no guarantee that sales will rise, so the money spent may never be earned back.
• Any sales increase may be short-lived, because once the campaign stops the reminders stop and customers may forget the product again.
• An advert may reach people outside the target market, so some of the spending does not persuade the customers who are most likely to buy.

For example, a small business selling a puzzle book might pay for adverts on a hobby website used by adults who enjoy puzzles. If the adverts appear on a general news site instead, many readers may ignore them, reducing how effective the campaign is.