Why do globally known brands like Nike, Adidas, Coca Cola and more still spend millions on marketing?

Answer 1

Super question. You're referring to the huge marketing expenditures of companies that are already leaders in their industry. Why should these global brands continue to spend millions on marketing if they're already well known?

Companies seek to maximize stakeholder returns. Stakeholders are people and other businesses that have an interest in the company, such as stock holders, employees, executives, creditors or their community. Companies like Coca Cola, Nike and others are continuously working on maximizing their stakeholder returns through marketing by: Developing new products, putting products in new places, renewing consumer interest in existing products, remaining competitive through pricing and growing sales through promotions. In other words, there's somewhere on earth that the company has not reached, or reached enough, where their products are not known and where there are new opportunities to seize.

Answer 2

Budgets for these companies are set each year. They make tons of money advertising, so that they can get new customers. New generations come up to buy these products all the time. Have you done more research to find out how much money is spent each year? Do you know the ROI (Return on Investment)? You can always review their Annual Reports online, or by requesting hard copies.