Your company has been around for a while, in this case, for more than 110 years. You still carry the same products that you once did but you are now facing new competition from places you never imagined. Your customers now have alternatives to what you have to offer from other product categories that satisfy a similar need. How do you remind the consumers that your product, the tried and true product is still the one they should choose? You reposition your product to fit the current paradigm.
The goal of successful advertising is to be known before you are needed. But if you compete in a crowded business category you must also be recognized as the first choice, the brand name that sits atop the Ladder of Importance in the consumer’s mind.
From an accountant’s point of view, advertising is not an investment. Advertising is an expense. The cost of advertising is an operating expense. It is listed right there on the company’s profit and loss statement. Advertising is not listed on the company’s balance sheet.