Advertising is the most important tool in the marketing of products and services. Companies all over the world universally accepted this fact. The expenses on advertising are considered to be a profitable investment that reaps profits both in the long and short run. Businesses that keep on advertising regardless of rise or fall in the economic times get a competitive advantage over those that cut their ad budgets.
Advertising broadens the knowledge of the consumers. With the aid of advertising, consumers find and buy necessary products without much waste of time. This speeds up the sales of commodities, increases the efficiency of labor in distribution, and diminishes the costs of selling.
The main benefits of advertising may be narrated as follows:
Benefits to Manufacturers
- It increases sales volume by creating attraction towards the product.
- It helps easy introduction of new products into the markets by the same manufacturer.
- It helps to create an image and reputation not only of the products but also of the producer or advertiser. In this way, it creates goodwill for the manufacturer.
- Retail price, maintenance is also possible by advertising where price appeal is the promotional strategy.
- It helps to establish a direct contact between manufacturers and consumers.
- It leads to smoothen the demand of the product. It saves the product from seasonal fluctuations by discovering new and new usage of the product.
- It creates a highly responsive market and thereby quickens the turnover that results in lower inventory.
- Selling cost per unit is reduced because of increased sale volume. Consequently, product overheads are also reduced due to mass production and sale.
- Advertising gives the employees a feeling of pride in their jobs and to be in the service of such a concern of repute. It, thus inspires the executives and worker to improve their efficiency.
- Advertising is necessary to meet the competition in the market and to survive.
Benefits to Wholesalers and Retailers
- Easy sale of the products is possible since consumers are aware of the product and its quality.
- It increases the rate of the turn-over of the stock because demand is already created by advertisement.
- It supplements the selling activities.
- The reputation created is shared by the wholesalers and retailers alike because they need not spend anything for the advertising of already a well advertised product.
- It ensures more economical selling because selling overheads are reduced.
- It enables them to have product information.
Benefits to Consumers
- Advertising provides awareness of the existence of the product to the customer
- Advertising stresses quality and very often prices. This forms an indirect guarantee to the consumers of the quality and price. Further large scale production assumed by advertising enables the seller to seller product at a lower cost.
- Advertising helps in eliminating the middlemen by establishing direct contacts between producers and consumers. It results in cheaper goods.
- It helps them to know where and when the products are available. This reduces their shopping time.
- It provides an opportunity to the customers to compare the merits and demerits of various substitute products.
- This is perhaps the only medium through which consumers could know the varied and new uses of the product.
- Modern advertisements are highly informative.
Benefits to Salesmen
Salesmanship is incomplete without advertising. Advertising serves as the forerunner of a salesman in the distribution of goods. Sales is benefited the advertisement in following ways:
- Introducing the product becomes quite easy and convenient because manufacturer has already advertised the goods informing the consumers about the product and its quality.
- Advertising prepares necessary ground for a salesman to begin his work effectively. Hence sales efforts are reduced.
- The contact established with the customer by a salesman is made permanent through effective advertising because a customer is assumed of the quality and price of the product.
- The salesman can weigh the effectiveness of advertising when he makes direct contact with the consumers.
Benefits to Community or Society
- Advertising, in general, is educative in nature. In the words of the late President Roosevelt of the U.S.A., “Advertising brings to the greatest number of people actual knowledge concerning useful things: it is essentially a form of education and the progress of civilization depends on education.”
- Advertising leads to a large-scale production creating more employment opportunities to the public in various jobs directly or indirectly.
- It initiates a process of creating more wants and their satisfaction higher standard of living. For example, advertising has made more popular and universal the uses of such inventions as the automobiles, radios, and various household appliances.
- Newspapers would not have become so popular and so cheap if there had been no advertisements. The cheap production of newspapers is possible only through the publication of advertisements in them. It sustains the press.
- It assures employment opportunities for the professional men and artist.
- Advertising does provide a glimpse of a country’s way of life. It is, in fact, a running commentary on the way of living and the behavior of the people and is also an indicator of some of the future in this regard.