Advertising helps in spreading information about the advertising firm, its products, qualities and place of availability of its products, and so on. It helps to create a non-personal link between the advertiser and the receiver of the message. The significance of advertising has increased in the modern era of large scale production and tough competition in the market. Advertising is needed not only by the manufacturers and traders but also for the customers and the society. The benefits of advertising to different parties are discussed in the following paragraphs.
Read More: Introduction to Advertising
Benefits to Manufacturers and Traders
It pays to advertise. Advertising has become indispensable for the manufacturers and distributors because of the following advantages:
- Advertising helps in introducing new products. A business enterprise can introduce itself and its products to the public through advertising.
- It can create new taste among the public and stimulate them to I purchase the new product through effective advertisement.
- Advertising assists to increase the sale of existing products by entering into new markets and attracting new customers.
- Advertising helps create steady demand of the products. For in-stance, a drink may be advertised ‘during summer as a product necessary to fight tiredness caused by heat and during winter as an essential thing to resist cold.
- Advertising help in meeting the forces of competition in the market-place. If a product is not advertised continuously, the competitors may snatch its market through increased advertisementments. Therefore, in certain cases, advertising is a necessity to remain in the market and remind the customer as done by soft drink companies.
- Advertising is used to increase the goodwill of firm by promising good quality to the customers.
- Advertisements increase the morale of the employees of the firm. The salesmen feel happier because their task becomes easier if the product is advertised and known to the public
- Advertising facilitates direct distribution of the product through the retailers. Retailers are encouraged to purchase and sell the advertised products.
Benefits to Customers
Advertising offers the following advantages to customers
- Advertising helps the customers to know the the existence of various products and their prices. They can choose from the various brands to satisfy their wants. Thus they cannot be exploited by the sellers.
- Advertising educates the people about new products and their diverse uses.
- Advertising increased the utility of products for many people adds to the amount of satisfaction which they are already enjoying.
- Advertising induces the manufacturers to improve the quality of their products through research and development This ensures supply of the products of better quality to the consumers
Benefits to Society
The society at large is also benefited because of advertisement:
- Advertising provides employment to persons engaged in writing, designing and issuing advertisements. Increase in employment brings additional income with the people which stimulates more demand. Employment is further generated to meet the increased demand.
- Advertising promotes the standard of living of the people by increasing the variety and quality in consumption as a result of sustained research and development activities by the manufacturers.
- Advertising educates the people about the various uses of different products and this increases their knowledge. Advertising also helps in finding customers in the international market which is essential for earning foreign exchange.
- Advertising sustains the press, and other media. It provides, all important source of income to the press, radio and television network. The customers are also benefited because they get newspapers and magazines at cheaper rate. The publishers of newspapers and magazine; are benefited because of increased circulation of their publication;. Lastly advertising also encourages commercial art.