r/explainlikeimfive Dec 16 '12

ELI5: Why does Coca-cola still advertise? Explained

Why do companies that have seemingly maxed out on brand recognition still spend so much money on advertising? There is not a person watching TV who doesn't know about Pepsi/Coke. So it occurs to me that they cannot increase the awareness of their product or bring new customers to the product. Without creating new customers, isn't advertisement a waste of money?

I understand that they need to advertise new products, but oftentimes, it's not a new product featured in a TV commercial.

The big soda companies are the best example I can think of.

Edit: Answered. Thanks everyone!

Edit 2: Thanks again to everybody for the discussions! I learned alot more than I expected. If we weren't all strangers on the internet, I'd buy everyone a Pepsi.

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u/[deleted] Dec 17 '12 edited Dec 17 '12

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u/Jed118 Dec 17 '12

that's why I have $10 piece of shit Nokias and often replace broken parts on them myself for chump change. Takes more than 20 mins to replace the screen or costs more than $30? Backup, open drawer take out another one (usually pre-buy on eBay), restore contacts, throw old one out.

Never worry about it being dropped, stolen, scratched... A phone is supposed to do one thing - be used for calling. Also texting.

(I work in IT so I am ALWAYS in front of a computer - Even at the gym, at my other teaching job, everywhere - same deal with my shitty NB200 netbook - break, fix)

And this is why I paid off my student loan WHILE attending U.

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u/qwimjim Dec 17 '12

Haha I love this statement "a phone is for making phone calls, that's -it-"... Says anyone's who's never owned a smart phone. No one has ever gone from owning an iPhone or android and gone back to a dumb phone. It really is amazing how some people don't get it. A smart phone isn't a phone, it's a pocketable COMPUTER that happens to make phone calls. And frankly making phone calls is probably not even in the top ten things I use my iPhone for.

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u/Jed118 Dec 18 '12

Nope, had a Nokia smartphone I forget what model, its maybe 3 years old now) for about 6 weeks - It was OK, but touchscreens suck, I need buttons. That and the battery life was terrible.

I don't see the need to be connected to everything 24/7 - I even turned down a company blackberry because I value my privacy at home, when I am not working.

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u/qwimjim Dec 18 '12

You might want to try a good smartphone, and no a blackberry isnt a good smartphone either. Touchscreens do not suck, they're actually amazing compared to navigating on a dumb phone. What are you 80 years old? How are you even on reddit much less the Internet? I'm sorry this is not a matter of preference, if you like a shitty Nokia over an iPhone or galaxy s3 you've got to be retarded. It's like saying you prefer your old 19" tube tv over a high end led HDTV.