I also heard Krispy Kreme donuts don't spend on Advertising. Why spend money, when you get known through word of mouth. It's clear how it works, they sell advertising, and allow those who advertise to create programs that include a google search engine with their own advertising or toolbar downloads.When it all comes down to it. a great product will advertise it's self. Two of the biggest functions of Advertising, seem to be to create salaries for public relations, and marketing executives, and for use as a tax deduction. There comes a point when there is enough liquidity, to pay the tax man continue development, and still give the share holders a significant profit. Why is is an archetype? It illustrates the way some advertising strategies have been almost worthless. Google is having their cart drawn by the horses from whom they already profit. They've learned how to create two links with the one click. I wonder if a Krispy Kreme donut would make it through customs?

most finance-econ types say good pr is better than advertisement. a small promoting article (for example) can very likely do more for a company than a full page add in the same paper.