Top 5 Advantages of Advertising!
Advertising is considered multi-dimensional. It helps in a number of marketing activities. It is a technique of sales promotion. Sales volume is increased by advertising. It helps and supports the salesman in selling the products. Consumer’s knowledge about the product is increased by advertising. Advertising helps the consumer to save their time in purchasing.
It also helps the manufacturers to sell their products. Hence quick selling is possible which leads to more production at less cost. The relation between wholesalers and retailers is improved through advertising. Advertising introduces new products, stimulates markets regarding the existing product and repeated sales.
Thus advertising is advantageous to the following groups of people:
1. It Increases the Sales Volume:
Advertising increases the sales volume of the product. Hence mass production is possible. This leads to reduction in the cost of production.
2. It Increases the Net Profit:
It increases the net profit by a higher turnover of sales. It leads to higher volume of production. Hence average cost of production is less, and the profit will increase.
3. It Stabilizes the Sales Volume:
Stabilization of sales volume is possible through advertising by the process of repetition. Regular and frequent advertising leads to regular flow of sales. It gives the name, location, products and services of the selling houses to the public often. During slump period, advertising tends to ensure a permanent class of customers to buy the product.
4. It Controls Product Price:
Control of wholesale and retail price is possible by means of advertisement. The needy retailers are overcharged by some greedy wholesalers. The retailers charge higher prices for the products. Hence the consumers do not want to buy such products. This will lead to reduction in sales. Hence manufacturers print on the cover or announce the retail price of the product.
5. It Helps in Opening New Market:
Advertising is helpful in opening or creating new markets. It helps to get leadership in the market. It helps the manufacturers to take decision whether to expand the market share or not. It also helps them to sell new products or improved variety of products.
6. It Maintains the Existing Market:
Maintenance of existing market is essential for the success of a concern. Hence manufacturers, who look ahead, always have an eye on the future business. As such, by advertising he is very tactful to hold up the present market and to expand the market.
7. It Creates Reputation:
Advertising increases the reputation of the manufacturers in the public. It builds the image of the product and goodwill of the manufacturers. It protects the manufacturers from aggressive selling method adopted by his competitors. It creates an image in the minds of the customer about his brand.
8. It secures more Dealers:
Advertising secures more dealers to buy the products. Due to the goodwill earned from the public, dealers are interested in buying such a product.
9. It is less expensive:
Advertising is considered to be less expensive. With a smaller amount of money, advertising reaches many people, and more people will buy the product.
10. Wide Information:
Wider information of product is possible through advertisement. Any change in quality or price can be made known by the manufacturers to the customers as and when it is necessary in a quick manner. Manufacturers can change the habits and prejudices of customers by tactful advertising. Thus, it helps in establishing and controlling the buying habits of the customers.
1. Creates A Background:
Salesmen’s mastery and skill satisfy the customers. A well-trained, active tactful salesman’s job makes easy distribution work. The advertisement, which is the background, will help the salesmen very much. Customers know about the product through advertisement. When salesman contact them with the product, customers buy the product without any hesitation.
2. Curtails the Burden of the Salesman’s Job:
If the advertising is done by the manufacturer, the work of salesman is reduced. Otherwise he has to advertise about the product and then try to sell the product. Salesman’s function is supported and supplemented by advertisement. Selling and advertising are ‘cup and saucer’ or ‘key and lock’ words. Salesmen’s work is made easier and more encouraging by advertisement.
3. Least Effort:
Advertised product can be sold very easily. Salesman’s time is saved and he can contact more customers in a shorter period. He can meet many customers with the least effort.
4. Consumer’s Need can be Studied:
A salesman’s confidence is increased through advertising by educating and stimulating the consumers. Customer’s demand and needs are studied by him correctly. The manufacturers are informed of this. They will supply the products according to the demand of the customers and thus equalize the demand and supply of their products.
5. Creates Enthusiasm:
Advertising reduces salesman’s job. He can do his job in a better way to sell the products, crossing the fixed quota. Hence it creates enthusiasm and confidence in him.
1. Creates Easy Sales:
Advertisement informs consumers about the quality of the product. Hence they know about the product. Sale of that product is easy for the wholesalers and retailers.
2. Increases the Turnover:
Advertising helps quick sale of the product which in turn increases the rate of turnover of the product. Thus, there is no question of old stocks. It reduces the expenses on overhead charges.
3. Attracts More Customers:
Advertising gives detailed information about the product and the availability of the product in a particular shop. As such, it attracts more customers in that particular shop.
4. Increases the Prestige of the Store:
Customers know about the store through advertising.’ The goodwill or reputation earned by the manufacturer is also shared by the selling shops. Thus the prestige of the firm increases.
In advertisement, product publicity and wholesale or retail shop publicity are done simultaneously. Thus, the retailers are also known to the public and thereby increase their sales too.
6. Economic Selling:
Advertising ensures more economic selling.
1. Easy Purchasing:
Advertising helps customers in easy purchasing of the products. Advertisement gives useful information about the reasonableness of the price and the quality of the product. There are many tablets for headache, like anacin, aspro, coldarine etc. A good advertising can help in buying the best one.
2 Connecting Link:
Advertising is the connecting link between the manufacturer and the customers. It eliminates the middlemen. There is no profit for the middlemen. Hence the price is low.
It helps the customers to get the product at fair price.
4. Saves Time:
It helps customers by giving information about the availability of the product, i.e., where and when. The customers can select the best product in a particular shop. Thus it reduces their shopping time. ‘
5. Best Quality Product:
Advertisement generally stands for a quality product. Manufacturers advertise their product only for selling. If the product is not good, customers will switch on to other products (brand). Manufacturers maintain their quality to retain the market. As such, it is advantageous to customers. Benefits of standardization are assured to the customers by advertising.
6. Educates the Customer:
The aim of the advertising is to educate the customers about the introduction of a new product mentioning its different uses. It gives information to the customers about the availability of goods and services in the market. The customers come to know about these things and purchase the products according to their standard. Thus the standard of living of the customers increases. The comparative type of advertisement of different products and substitutes will enable the public to understand more about a product or services.
7. Mail Order Business:
Advertising helps the people to get the products directly from the producers through mail order business. There are places, where the products are unavailable- villages, rural areas. Advertising helps them to get the products through post. Thus it improves the social welfare.
1. Increases Employment Opportunities:
Advertising generates employment opportunities directly and indirectly. Direct employment opportunities in advertising are artists, painters, singers, musicians, writers, photographers, pressmen, managing agencies etc. It creates mass sales, followed by mass production which in turn opens the door for more employment indirectly.
2. Uplifts the Standard of Living:
Advertising is an effective tool which raises the standard of living of the people of advanced countries. The standard of living is measured by the amount of national income and its distribution and the consumption pattern. Advertising gives stimulus to the consumers to buy new variety of products. It leads to large-scale production of more varieties of products followed by mass consumption. Thus advertising creates demand for standardized products.
3. Educative Value:
Advertising educates the members of the community in the various uses of products. As such, people know the varieties of products and their availability in the market and uses and benefits. Thus it educates the people. People become intelligent buyers. They become economic buyers. They understand the merits and demerits of products they come across.
4. Helps Press:
Advertising gives more income to the press. We cannot buy newspapers at a cheaper rate without advertisement. Commercial advertisement and broadcasting are undertaken by radios, television, newspapers etc. These lead to the cheaper availability of newspapers. We can say that advertising is a boon to the producer and consumer. It is very important for modem trade and commerce. It stabilizes the sales volume and also the national income. It encourages large-scale production and increasing the profit. It reduces unemployment.