There are a number of advantages of advertising and without advertising today it has become hard to market your product. Advertising is an art of influencing customers through the paid non-personnel presentation to purchase and possess a product.
It can also be defined as “Any paid form of non-personal presentation of goods or services or ideas to the present and prospective customers. According to C.L Bolling “Advertising can be described as an art of creating a demand for an article of service.
From the various definitions of advertising mentioned above, the key elements of advertising are:
- It is a non-personal selling of goods or services or ideas to the public in general.
- It carries a message to the customers and reminds them carefully.
- It informs the existing and prospective customers about the quality and utility of the goods or services.
- It builds interest in new products, new technology, new business concerns, etc.
- It is sponsored and paid for.
- It creates awareness regarding the products etc.
Advantages of Advertising
The main advantages of advertising to the manufacturer, consumer, and society are as under:
- 3 R’s of Advertising
Advertising is a very effective method of presenting information about the products both inside and outside the country. It helps in 3 R’s which is given below:
- Retaining” Loyal” Customers
- Reducing “lost” customers.
- Recruiting “New” Customers
- Reduction in Per Unit Cost
It helps a businessman to boost up the sale of his products. He inspired by a rise in demand, produces the goods on a large scale which in turn reduces the cost of each unit. So a reduction in cost and an increase in profit is also one of the advantages of advertising.
- Increase in Employment
One of the advertising benefits is that it increases the sale of goods, which enables advertisers to produce goods on a large scale. Advertising thus provides employment to a huge number of people and raises their standard of living.
- Change in Living Habits
Essential advertising brings about a speedy change in the lifestyle, attitudes of the people. The advertisement of prepared frozen foods, readymade packed breads, introduction of new forms of entertainment, introducing new styles in clothes, hairdressing shops, establishment of beauty clinics, VCR, new mean of communication etc have been constantly changing our living habits.
- Elimination of Middleman
Elimination of middleman is also from one of the advantages of advertising. Advertising get up attention and provides information about the effectiveness of the good remote and broad in the country. The retailers directly order for the manufactured goods. Advertising thus eliminates the middleman and proves a good substitute for the travelling salesman.
- Acceptance of New Products
Advertising brings in new goods to the consumers, impresses upon them the new uses of the products which save their income.
- Virtues of Thrift
Advertising teaches the people about the virtue of thrift and their responsibility to their dependents. The life insurance, fire insurance, marine insurance has saved families from extreme poverty.
- Institutional Image (Perception)
It helps in the construction of a favorable picture of a company. A company, for instance, in an hour of long television program stresses the reputation, the policies, and the activities carried on by the company. The main purpose of this program is to put the full force of the reputation of the firm behind the product in the mind of the people. So creating a good perception in the mind of the people is also one of the great advantages of advertising.
- Sale of Entire Line of Product
Advertising helps in promoting the whole family of products manufactured by a firm. Such as, a company manufacturing cloth may produce towels, blankets, readymade shirts, paints, and other garments. A single advertisement will promote the sale of an entire line of product, thus greatly reducing the cost per unit.
- Increasing the Sale of Entire Industry
If an industry is facing stiff competition in the market due to the availability of new substitutes, then through proper advertising company may easily enhance its products from its competitors. Enhancing yourself and increasing your sales in the entire industry is also one of the advantages of advertising.
- Advantage of Consumers
The consumers remain better informed about the competing products and their qualities through the information supplied by advertising.
- Encourage Competition
Advertising encourages competition among competing firms. It leads to the production of a better quality of goods. Consumers are able to get better quality products at competitive prices.
- Social Benefits
The social advantages of advertising are
- Maintains contact between the producer and the consumer
- Has an educational value.
- The advertisers bear the cost of newspapers, magazines and provide the reading material to the consumers at a cheaper price.
Difference between Advertising and Advertisement
Advertising and advertisement have different meanings. Advertising is the art of creating a demand for a good or service. It is making a non-personal presentation of goods or services or ideas to the present and prospective customers. The term Advertisement, however, refers to the form in which a presentation is made and a message appears.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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