4. Customers rely on name recognition to guide their consumer choices most of the time

Why do people still buy name brand products over generics even when the price difference is significant and the quality of the products is equitable? Because of name recognition! Consumers respond to names that are familiar whether they are buying a new car, a computer, a lawyer, or ketchup. If you want to succeed, you need to be sure that your targeted audience will know your name when they hear it and will think of your name when they need your product. Advertising can make that happen.

On the other hand, many business owners see advertising as a quick fix. If business gets a little slow, a newspaper ad or a direct mail piece will fix everything in a jiffy. That's not the case either. Let me give you a few reasons why.

1. Advertising works on a six month cycle

Many times when people think their advertising hasn't worked, it's because they haven't waited long enough to see results. Generally, the advertising you do today won't fully pay off for another three to six months. For that reason, if you want to ensure a consistent stream of customers, you need to continue to advertise all the time. Advertising only when business is slow simply won't save your business because by the time you start seeing results, it may be too late.

2. Your problems are related to another step in the process

Another reason advertising can't cure everything is that simply attracting customers is only one step of the process. Once you lure them in, you need to have the content or the customer service to convince potential buyers to take that next step. If any step in the process is lacking, then no amount of advertising is going to help.

3. You are neglecting your current customers and their potential

Don't make the mistake of focusing all of your efforts on finding new customers when your best source of additional revenue is being neglected. Past customers are more likely to become repeat customers, plus they don't require the additional expenses of marketing and advertising.

As you can see, the truth about advertising is that it can be a powerful force for your success if handled correctly. Too many people see it as an evil force or as a business miracle when the reality is somewhere in between.