- Business and Employment»
- Marketing & Sales
Advantages of Advertising
- Increasing salesThe expenses of advertising may be justified on the ground that it helps to increase sales, which there by results in increased production.
- Reduction cost
It assets to reduce cost of production and distribution which are passed on to consumers in the form of reduced prices. .
- Duplicate advertising
The basic purpose of advertising is to increase the sales of products which are not in competition, For example large amounts are spent on the publicity of Tooth Pastes which appear to be in competition but which is really produced by the same manufacturers. ,
- Prevention of lost sales
Much advertising is aimed at preventing the erosion of its sales by competitors. So advertising may be regarded as being “defensive”.
- Creating market attitude
Advertising can create a market attitude for product which would not otherwise be desired. Thus artificial demand can be created by exploiting fears.
- Impression the public
Advertisement is considered important branch of business which impresses the public about the superiority of product.
- Economy in commission
It introduce the manufacturer in the market as an independent supplier. So public may directly place an order to him which can reduce a wholesaler's commission and utilize it to lower the retail prices.
- Encouraging competition
It assists to promote competition among the producers. Thus it facilities to supply goods of improved quality in the market at competitive prices.
- Increasing business activities
Advertising helps to increase the business activities in the country. Thus national income and consumption per capita may be increased.
- Developing goods
It informs the manufacturers about the changes in taste, fashion and habits of customers. So producer will be in a position to develop his product according to the changed circumstances in the market.
- Sufficient profit
It promoters the selling process to the great extent which gives producers sufficient profit.
- Informing consumers
Advertising provides the information to consumers about the choice, prices quality and other description of product at their home, which guides them for quick decision.
- Increasing standard of living
People are informed about the new scientific inventions, new style and use of products. Improved accommodation, better clothing and food by advertising. Thus it stimulates the desire of public which increases their standard of living.
- Providing employment
As it helps to create the new demand of the products, it tends to increase the sales volume of goods. So new industry will be established and old industry will be expanded where thousands of persons may be engaged.
- Providing reading materials
News papers magazines, Periodicals and other journal provide the sufficient reading material to public to cheaper prices. On the other side, it is a great source of income for many people.
- Educative value
Various media of advertisement render the valuable services in spread of the moral and educative value in the country. General public learn about economics and social aspects of human life. It also creates close contact between the producers and the consumers.
- Encouraging buying ability
Constructive advertising encourage to a great extent the necessity for buying ability. The use of brands is essential for most advertising which makes it possible to depend upon the standard quality of such merchandise. It enables the customers to avoid purchase of unsatisfactory brands.
- Enabling the task easier
Advertising makes the sales man's task easier. It is used to assist him in realizing the goods which are effectively advertised. The part of the selling programme that can be performed by advertising can be done at less cost than by conducting the entire selling function on personal basis.
- Introduction the new products
New products can be introduced and popularized in the market by advertising. But in this way an established company which manufactures a group of. products can boost up the sales of its entire products.
- Saving time
Advertising greatly helps to save time. It enable the consumers to spend a short deal of time seeking products to meet his requirements because he has already been informed about many standard goods through advertising.
- Miscellaneous advantages
- (a) It has greatly encouraged innovation and technology.
- (b) It facilitates to establish reputation of firm and goodwill of products.
- (c) It helps to maintain a steady demand.
- (e) It helps to eliminate middlemen.
- (e) It eliminates seasonal fluctuations.
- (f) Correspondence course have been made possible largely due to advertisement.