Advantages of Advertising

The advertising benefits two main groups, namely:

A) Manufacturers

B) Consumers

1. Large-scale production and marketing: Advertising is useful as a sales promotion technique. It gives information to consumers and encourages them to purchase more. Manufacturers expand their production base due to a higher market demand created through advertisements.

2. Introducing new products: Advertising facilitates the introduction of new products. Due to it, information about new products is given to the people (prospects). A demand generates because of this, and the manufacturer can sell new products along with the existing ones.

3. Creates new demand: Advertising spreads information and encourages consumers to purchase new products. It creates a new demand. Customers are offered various concessions in the initial period. It generates positive responses from them, and soon new customers also respond. Thus, advertisement creates new demand from non-users.

4. Effective personal selling: Advertising creates a proper background for personal selling. It gives advance information to the prospects. They visit the shop in order to purchase a particular product that they know through advertisements in media. The job of a salesman becomes easy as consumers develop an affinity for advertised products. In brief, it supports and supplements personal selling.

5. Builds brand image: Advertising build brand image and this develops consumer loyalty towards a specific brand. Manufacturers introduce branding to popularize their products with a distinct personality. Brands get popular through advertisements. As a result, buyers develop loyalty towards a specific brand.

6. Reduces cost of production: Advertising creates demand and promotes sales. It enables a manufacturer to conduct production on a large scale. It leads to a reduction in the cost of production and distribution. As a result, the profit margin of the manufacturer increases.

7. Facing competition: Advertising aids a manufacturer to deal with market competition effectively. It helps him to promote and popularize his products. He can remove misunderstanding among consumers about his products through appropriate advertisements.

8. Sales promotion: A manufacturer can make his sales promotion campaign successful by using the support of advertising. He can prepare a proper background for the success of such an ad-campaign as it facilitates direct communication with consumers.

9. Goodwill builder: A manufacturer can build up goodwill in the business world and also among the group of customers through advertising. The social welfare programs and community service activities can get wide publicity through advertisements. The public can notice even the progress of the organization through it.

1. Information and guide: Consumers get information and guidance from advertising. They can study the advertisements of competitors and select the appropriate products that are best suited and profitable to them. It helps to avoid their cheating and exploitation at the hands of middlemen.

2. Acts as a reminder: Advertising act as a reminder to consumers and alerts them about the urgent product they need to purchase.

3. Attracts customers: Advertising leads to competition among manufacturers and retailers. They have to offer something special in order to attract buyers. Such attraction offers benefits to consumers. For example, manufacturers have to bring down the price in order to attract customers. They have to supply quality goods in order to attract them more. All this is beneficial to consumers in terms of price and quality of goods.

4. Raises living standards: Advertising raises the standard of living of people by supplying information about goods and services, which can offer convenience and pleasure to them. It guides consumers in the selection of most suitable products for their daily life. Thus, it provides a higher standard of living to consumers as a social group.

5. Efficient product use: Consumers get information about uses or benefits of different products through advertising. They also get guidance as regards the right manner of using the product and helps to avoid any possible damage from the use of a purchased product. The information supplied through advertisements helps to know how to use a product in different ways.

6. Removes misunderstanding: Advertising helps most consumers in removing their misunderstanding about certain products. They change their attitudes towards products and services due to it.