Advertising helps informs the customers about the brands available in the market and the variety of products useful to them. If the advertisement of any concerned product, service or idea is done correctly at a right place, through proper media, and within a particular time constraint, can attract many new customers. The press media gets sustenance due to good circulation of newspapers and at reasonable price. It has now entered the areas of politics, social achievements and economic growth. It has made possible tremendous industrialisa­tion and economic development in many countries. Advertisement is a cost effective tool for promotion of a product. This encourages the manufacturer to increase production. Customers are introduced with the new products available in the market and are induced to buy the new product available. More importantly, however, is the fact that effective advertising has offered to society benefits not otherwise available. When customers develop brand loyalty, they are unlikely to switch to other brands easily. Importance # 1. Every manufacturer and producer, who wants to make available his goods to people at profit, do take full advantage of advertising to popularize their products and services. Its Objectives, Advantages & Disadvantages. Importance of Advertising media Advertising helps convey the information regarding launch of the new product. It also highlights the benefits, advantages and the method of usage of the product. In most of the advertisements, the producers makes efforts to convince the superiority of products by comparing with that of competitors brand loyalty is created by highlighting the strong uses of one’s products. This will result in increased product usage and the demand for the same. This helps in educating the general public about the benefits of the products. Consumers can thus avail products at a much lower rate which helps in raising their standard of living. It works as a pull factor in the market and creates demand for the product. Planning before Shopping 3. He laid the foundation of classic … [Read More...], Lionel Robbins turned the tables by proposing a whole new perspective of economic. Importance of Advertising Advertising plays a very important role in today’s age of competition. Moreover, it may not be necessary that your brand’s age is similar to the other ones. Ready to receive – The brand image created by advertising prepares the ground for the visit of salesman. And the answers are quite a morale-boosting for a worker that works in your brand and faces the same situation if he gets “Oh that company or store with extremely amazing services” as the reply to his answer. Advertisement helps to counter competition. The exposure to new and improved products, new consumption situations, new activities and new values encourages aesthetic sense in consumption decisions. The expenditure made on advertisement can turn as good boost in earnings. An indelible impact can be created by effective advertisement which lays foundation for rushing of a product in any intended market. To achieve this, they should not devote all their resources solely to earn more and … [Read More...], Adam Smith is termed as the father of modern economics. It is very difficult for a company to promote their new product or services if they do the promotion without a proper. Sameera January 16, 2019 at 9:57 am. When? In its first year, a company might spend as much as half of its sales on marketing programs. In today’s highly sensitive and competitive market, a firm cannot maximize its profit, unless it multiplies its sales turnover. 2. Enhanced Knowledge 2. It is also true that the need for time to time advertising is also dependent upon the field in which a company is operating. (b) Helps in maintain existing market and explore new market – Every forward looking company eyes on future prospects without losing its current position. At times, the content is adjusted to the requirements of the advertisers to ensure the continuity in the flow of advertising revenue which usually is the major source of revenue for media. Because, they have created their corporate image and become household names. Advertising facilitates the implementation of various sales promotion techniques in the market. At each product life cycle stage the level and the kind of advertising is related to its price strategy. Thus, advertise­ments are also designed to serve as a reminder to existing customers. Advertisement of the new product is necessary so that consumers become aware about the product, its availability, its utility, its price etc., thus, advertising is crucial to promote the sale of a new product. But, just like veggies, advertising plays an important role in sustaining a body; in this case, a diverse body of content” (para. For a ‘less expensive frequently purchased product’ the use of repetitive advertising may cause trial purchase. Social media marketing is the fastest growing marketing trend with a reported 9 out of 10 businesses employing some form of a marketing campaign on social media. This cost benefit is passed on to the readers. The wheels of industry and commerce cannot move with desirable speed without the propelling power of promotion-mix. Advertising is a type of communication designed to convince an audience (viewers, readers or listeners) to buy or take several action upon goods, ideas, or services. This constant interaction creates a picture of credibility and an eagerness to listen to what the clients have to say. We can tell numerous people about a product or service in the quickest time interval at the lowest possible cost. Between online, television, radio, and print platforms, the average American sees hundreds, even thousands of advertisements daily. Marketing management has obtained importance to meet thriving competition and the need for developed strategies of distribution to reduce cost and to increase profits. BBA & MBA Exam Study Online. Purchasing these products helps in raising their standard of living. The existence of the concept of advertising dates back to Ancient Egypt and this alone pretty much explains how advantageous advertising can be for the perfect functioning of your business. Nowadays, many companies are using advertisement to attract customers and it plays an important role during product or services life stages. Thus, the consumers become aware about the products available in the market. Since the advertisements have educative value, they affect the thoughts, gestures and behavior of people. This enables a producer to improve the quality of his product in comparison to the competitors’ products. As advertising helps to create and maintain sustained demand throughout the year, the large scale production needs to be undertaken. What is tasteless to one group may be quite informative to another. The production costs assigned to each unit of output are lowered. Along with Telecom and Auto sectors the growth of advertising industry is driven mainly by advertising for new product categories including Mutual Funds, IPO’s, Aviation and also the increased ad spend for rural markets and the markets with low price points. Product Launch – The foremost aim of advertising is promotion. Both numerically and geographi­cally, the size of the market has greatly increased, making it well-nigh impossible for manufacturers to reach the prospects through sales­manship alone. In this way, scarce resources can be exploited for more essential, purposes. Advertising provides information about new products to the consumers. We live in a varied economy characterized by consumer segments with differing needs, wants and aspirations. Now there is a global concern about advertising for its role in saving the earth in the wake of deteriorating environment and the need for sustainable products. Advertising is a favorable representation of product to make consumers, customers and general public aware of the product. No firm has an unlimited marketing budget, no matter how big it is. In case of selective or exclusive distribution strategy adopted for the product, advertising is mainly used to provide information about the product availability. There is also research evidence which supports both the views and holds that ‘advertising not only provides information about which substitutes exist, it also provides consumers with recall cues so that they consider more substitutes at the time of purchase’. In modern marketing, advertising plays a very important role in creating awareness and demand for the products. Advertisement creates and increases demand of the consumers for the product and thus helps to increase and maintain the sales volume. The personal salesmanship is not possible and not suitable also for all the products. On the other hand, for the purchase of a product like automobile advertising is primarily used to generate awareness and impart knowledge about the product. It is a form of communication which informs, persuades and reminds customers of the qualities of the product. It helps to spread awareness about products or services that are of some use to consumer and potential buye Importance of Advertising in Business. It helps to create a non-personal link between the advertiser and the receiver of the message. Advertising creates awareness in people. In recent times, the importance of advertising has increased many-fold due to many reasons. Advertising definition. Marketing is very beneficial for the transfer, exchange, and movement of goods. Since its origin, advertising has undoubtedly been an integral part of economic and socio-cultural growth of any market based economy. It plays an imperative role for both manufacturers and consumers. It is responsible for creating and delivering rising standard of living to innumerable people. This task becomes a kid’s toy if you make each of your advertising campaigns pay for them. You can get an idea about this by thinking of the promotional strategies that the networking companies use. Importance of Digital Marketing for Working Professionals: Let’s talk with respect to each profile or individual type, about its suitability to everyone. To impart knowledge about product to the customer. This will help in raising the standard of life of people. They are compelled by the recent developments and the cut throat competition resulting into the question of survival. The newspaper, the radio, the television and magazines are employed to project the democratic needs of the country, so that the public may judge their qualifications and integrity and cast their valuable votes for the most suitable candidates. Consumers learn about new and improved products and how to use the product innovations for their best purpose. Marketing management today is the most important function in a commercial and business enterprise. Every product is distinct and unique in nature as compared to other competitors. The cumulative effects of non-stop ads on television, radio, print, and outdoor ads can be overwhelming and there is an involvement of advertising in the increased popularity of socially questionable behavior-cigarette smoking. But still, forgetting the business in that condition, advertising is a must-have part of your business strategy. His survival and continuation depends on has best he reaches the users and makes them to buy his/her products. Advertising informs consumers about the availability of substitutes and helps them in making informed choices of the products. The existence of the concept of advertising dates back to, It is also true that the need for time to time advertising is also dependent upon the field in which a company is operating. They are the producers and manufacturers, customers, salesmen and the society as a whole. It helps in creating a good image and reputation for a firm and helping to fight competition in the market. Advertising helps in improving the standard of living of people by promoting variety and quality in consumption. Paid form: Advertising is always a paid form of communication and hence commercial in nature. Sir Winston Churchill once said that advertising brought together fertile unions. It may be about availability of family budget, how to bring a product, packing, payment, quantity needed etc. Disclaimer 9. Advertising helps to keep the consumers informed about whatever new products or services are available in the market at their disposal. Improved Standard of Living 2. Thus, advertising leads to the creation of demand for the product. Since its origin, advertising has undoubtedly been an integral part of economic and socio-cultural growth of any market based economy. This change can come from different causes (involuntary or voluntary) and can have … [Read More...], Any company that wishes to implement a Food Safety, Quality Management System, among others; it must go through periodic evaluation processes or internal … [Read More...], The path that companies have to travel to reach success is not easy. The people, the producers and the working class are made aware of the government policies and plans for the economic development of the country. Advertising is for everybody including kids, young and old. These will certainly help customers and general public to gauge the growth and sophistication of manufacturing sector, distribution efficiency and role of a firm in national development also. Moreover, it increases competition in the market, which helps consumer in getting the product at reasonable price. For example, Ola cab, Uber services have reached customers through advertisement and people prefer cabs to bikes or auto services. And if you are not applying this profitable source, you are missing out an incredible marketing opportunity, as it makes it easy to … iv. Now there is a global concern about advertising for its role in saving the earth in the wake of deteriorating environment and the need for sustainable products. Advertising is considered to be an important and compulsory activity on the part of manufacturers. For any project that respects itself, the business model, or Business Models, is a crucial point that should not be … [Read More...], The Dividend Policy in Business:- The dividend decision is one of three major corporate finance decisions, such as investment selection - choice of … [Read More...], Cash analysis is an essential part of financial analysis. To ensure that customers are retained and new customers are attracted, the manufacturer has to adhere to quality standards and offer the best quality of goods to the consumers. Some of the benefits enjoyed by customers are: An advertisement gives many information relating to product, firm, nation etc. It is your most powerful companion that helps you in reminding your existing customers that your company is alive and fully-functioning. Till here, you might have been thinking that the importance of advertising starts with gaining a new customer base and ends with it. For instance, the water purifier advertisement enriches the knowledge of safe drinking water, motorbike advertisement tells about economy in oil usage etc. Advertising affects the sensitivity of product’s demand to changes in its price. Advertising thus increases the demand for a product. ADVERTISEMENTS: ii. Many modern amenities like refrigerators, motor cars, cameras, radio, vacuum cleaners, and other appliances are sold in mass markets at very reasonable prices —much lower than the prices at which they were initially introduced in the market. When competition is intense and the competitor undertakes intensive advertisement to promote their product, it becomes essential for the marketer to advertise for their product. Easy Convincing 3. Advertising is not only a provider of information about products, services, and availability at different retail loca­tions, but also an important link between the advertiser and the receiver of the message in the retail sector. 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