And if you are not applying this profitable source, you are missing out an incredible marketing opportunity, as it makes it easy to … Advertisement has a mass appeal and can create demand amongst a large number of customers and can stimulate the interest of the large number customers. Remember, advertising may take time to generate results. 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. Small companies that cannot afford large advertising budgets can use public relations to get their name out there. We can tell numerous people about a product or service in the quickest time interval at the lowest possible cost. Advertising helps informs the customers about the brands available in the market and the variety of products useful to them. It might not just be about paying and getting but also about educating people about the causes and remedies to certain problems that they mostly face. Companies and organizations use branding to create a look, feel and message for themselves that will be remembered by consumers. What is tasteless to one group may be quite informative to another. It helps maintain competition and discourages monopoly. Mobile Marketing Strategies. It educates people about new uses of a product and provides information for developing better ways of leading life. Some of its types, such as an ad in the newspaper or on the radio, do not require much money, where other forms of advertising, such as television, require significant funding. The customers in particular and the whole society in general shall be benefited from the advertisement. Lower consumer prices then allow these products to become available to more people. As a result, old brands are likely to be forgotten by the consumers. No business can succeed without suitable advertising, for advertising makes people aware of new products, and of the new want-satisfying attributes of these products. Lack of information throws away any producers out of market. The significance of the role of advertising in politics becomes vividly clear when political parties resort to different media of advertising to present their election manifestoes and promises to serve the public. The criticism that “most advertising messages are tasteless” and that “advertising contributes nothing to society’s well-being” some­times ignore the fact that there is no commonly accepted set of standards or priorities within our social framework. It is quite common that the products known to customers are demanded by them in market. These messages are generally paid for by sponsors and viewed by the use of various media. It involves multiplicity of advertising activities involved in the development of an ad which add to its scale of operation in the economy. This benefit is ultimately passed on to the consumers in the form of reduction in price. It is responsible for creating and delivering rising standard of living to innumerable people. The society benefits in the following ways: Advertisement introduces successfully the new variety of products and convinces about the reasonableness of prices. In case the trial experience is satisfactory, it is expected to result into final purchase of a product. Indirectly, it gives employment by supporting all those industries like – paper; colour; electronic etc. The manufacturer can help them by printing the price on the packages. Similarly, for public relation and publicity to be effective in their goals, advertising provides a viable platform to make people aware of such promotional initiatives. The personal salesmanship is not possible and not suitable also for all the products. Advertising could be done in visual or audio forms. If production is at small scale, the burden of fixed costs will be more and profitability would be lesser. Non-business enterprises have also recognized the importance of advertising. Advertising helps to popularize a product among the consumers. The production costs assigned to each unit of output are lowered. This will result in increased product usage and the demand for the same. Improved Standard of Living 2. Sir Winston Churchill once said that advertising brought together fertile unions. What Is Business Model Innovation? Advertising- helps in launching many new products in the market. 1. The importance of marketing can be understood through the points mentioned below: Exchange and progression of goods — Marketing is highly beneficial in deportation, transaction and progression of goods and services. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising to share the expense. Planning before Shopping 3. Disclaimer 9. Importance of Advertising In a successful business, advertising play an essential and important role. It also highlights the benefits, advantages and the method of usage of the product. Middlemen are essential link between producer and consumer. In fact, the customers wait for the visit of salesman to get confirmed about the advertised products. It promotes all the features and attributes of the product. For example, the criticism that “advertising costs too much” views an individual expense item in isolation. Basically they are channels through which companies can advertise their products and services to reach to customers. It encourages manufacturers to improve the quality of prod­ucts through research and development. As a business activity it holds its importance for an economy. Hence, a customer may get interested in purchasing the product. Advertising: One of the most important elements of the promotional mix, advertising involves reaching a large audience through a variety of mediums to build brand awareness, promote special offers and build customer loyalty. 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. The consumer’s base is to be expanded. As a part of the marketing plan, a marketer must develop a public relations strategy. In this way, he finds to reach the consumers and operate profitably in the market. Well! To Educate Customers about New Uses of a Product: Advertising is sometimes, used to convey new uses of an existing product to the customers or to draw their attention to some new features of the product. For certain products, consumers feel that a particular characteristic is very important. It promotes competition, which is desirable for the growth of a free economy. The introduction of a new product is also made possible by the use of proper advertising. Importance of Advertising Advertising plays a very important role in today’s age of competition. The productivity of advertising decisions increases when the quality of decisions in other areas of marketing mix improves. Marketing as it was originally intended, in its fullest, truest, and greatest form, is more important today than ever before. An advertising strategy generally suffers from the averaging problem that escapes many of its critics. Since the customer is aware of the products, he selects the product that is best suited for his needs. Mass production and mass distribution totally depend on all forms of advertising and publicity. Importance of advertising agency includes 6 various points like:- 1. The complexities of modern distri­bution have made advertising very essential for successful marketing of goods. As manufacturers control the price of well- advertised goods, price-cutting is not available to the retailers and the shopkeepers as they try to attract customers by giving better and more satisfactory service. There is an expectation that good TRP’s will attract advertisers. It keeps the company ever-present in the consumer's mind when it is easily recognized and used consistently on all company advertising and communications. This can be about anything ranging from an expansion campaign for your business, at one end, to a new, unique and antique solution that can be known as the product which answers to a particular problem of its users in daily life and not just this but also it includes every other aspect of life that needs the attention of customers brought to it. To impart knowledge about product to the customer. The role of advertising can be analyzed from five different angles namely, manufacturers; middleman; sales force; customer and society. Advertising facilitates the implementation of various sales promotion techniques in the market. What Is The Importance of Advertising in Modern Marketing? Advertisement is a cost effective tool for promotion of a product. Advertising helps in creating awareness about a product which leads to increase in its demand. Ready to Receive. What? This also enhances the goodwill of the manufacturer. Because, they have created their corporate image and become household names. Advertisements help various media like newspapers, magazines etc., to cover a major portion of their costs. But there are some smaller level businesses also who just think it to be a great strain to the brand’s budget and manpower. Life style and value systems are modified by advertisements. Impressing New Uses of a Product 4. That is why; most of the retail organizations do not employ large number of travelling salesman. It educates customers about new products and their diverse uses, iii. But when advertising is used it generally assumes a dominant position in the overall marketing and promotional strategy of an organization. iii. Advertisement is not only carrying messages of a product but also the history and culture of a firm. (Hubspot) Videos are amazing for getting all sorts of messages out there, and if we think in terms of practicality, a short, unique explainer video can do a world of difference when it comes to educating people on the ins and outs of your particular product. For instance, the water purifier advertisement enriches the knowledge of safe drinking water, motorbike advertisement tells about economy in oil usage etc. Importance Of Advertising To The Customers. 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. Therefore, the advertisement reaches the customers much before a salesman visits. Copyright 10. It is a fact that the situations that a business faces differ from brand to brand and field to field. Advertisement helps to introduce a product to the customers by providing every detailed feature about the product. Consumers learn about new and improved products and how to use the product innovations for their best purpose. A regular and frequent advertising helps the producer to obtain this objective. The people, the producers and the working class are made aware of the government policies and plans for the economic development of the country. Man can set goals for better homes, clothing and food by selecting appropriate suppliers. This will essentially help in … Every producer claims his product to be superior one. All these products are advertised in the market. Sameera January 16, 2019 at 9:57 am. Every producer introduces a new product or services to the consumers. Customers are introduced with the new products available in the market and are induced to buy the new product available. Author James Hurman, among others, has researched three decades of ad campaigns and found that when executed effectively, creative ad campaigns deliver an ROI that’s as … All the activities related to advertising need human resources to work creatively, efficiently and constructively. Advertising agencies need designers, copywriters, graphic designers, media planners, production houses and many other agencies. This requires more time to convince all the customers personally about each and everything about product. iv. In short, advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life, as well as lower product costs. Thus, there are many advertisements in newspapers in which the list of dealers and distributors is given along with the particulars of the product. iv. To sustain its growth, media houses always attempt to improve TRP’s (i.e. Privacy Policy 8. (Kotler 2010) Advertisement induces the current customers to buy the product and aims at retaining the current customers and also attracts new prospective customers towards the product and converts them into loyal customers. Thus, the advertising sector generates direct employment to large number of creative and enthusiastic people. Increase in employment brings additional income with the people which stimulates more demand. Many advertisers carry on advertising to create a brand image or an institutional image of their organization. His survival and continuation depends on has best he reaches the users and makes them to buy his/her products. Hence, advertising is essential, especially for a new product that has to be launched in the market. It is the back­bone of modern national and international marketing. It builds a favourable image about the product in the minds of the consumers and hence enhances the image of the brand. The more and more uses of a product are convinced, the widest base for product can be created. Whatever the form of presentation, […] It works as a pull factor in the market and creates demand for the product. Provided, what that solution of yours gets some exposure with the help of a little ad and it can be anywhere. It has become promotional tool not only for producers but also for consumers and society at a large to know about the availability of goods and services. Advertising is important for both new and existing businesses, as it helps to communicate important information to customers and is one of the first steps in building strong relationships. In a nutshell, advertising appears to be one among many marketing activities being taken up to communicate with the customers. This will enhance the understanding level and knowledge of remote areas. (b) Better Quality Product at Reasonable Price – Advertising promotes good quality product by printing their image in the minds of consumer. 2. In films, soundtracks or pieces of music directly relate to how viewers will feel. Moreover, it may not be necessary that your brand’s age is similar to the other ones. iv. Advertising thus increases the demand for a product. TOS 7. It has made poss… He was the man behind all the basic laws of Modern Economics. But don’t you think it may still worth your time to go through the rest of the article for getting an idea of how important advertising can be for your business. It helps in creating awareness among the customers about the existence, prices, and availability of products at differ­ent locations, ii. Marketing is very beneficial for the transfer, exchange, and movement of goods. The importance of advertising lies mainly in the assistance that it provides to salesmen in the process of selling. The booming stock market, price rationalisation across categories, exploding real estate and entertainment industry has opened up new markets for the advertisers. A producer can introduce a new product by explaining the unique features of his product and can create awareness among consumers in order to gain their acceptance. Advertising affects the sensitivity of product’s demand to changes in its price. If you advertise in a magazine it may be kept around the house for a couple of months before a customer visits your store to act on the advertisement. More Coverage 4. Advertisements are of great importance for any business activity as it attracts people to use the particular service. The awareness of the product or services can be created through highlighting the unique features of the brand. Thus, consumers can make an informed decision and buy a product that suits their preferences. Since its origin, advertising has undoubtedly been an integral part of economic and socio-cultural growth of any market based economy. Although marketing is hugely important for a business to succeed, it can also be very expensive. For the purpose, each and every means of advertisement will come in handy like fliers, cards, a brand new website, that just focuses each and every milestone that your company has covered towards making this earth a heaven, or even those old and dusty paper-based regular ads. It helps to create a non-personal link between the advertiser and the receiver of the message. Most modern production techniques also ensure a reduction in the overall cost. For a ‘less expensive frequently purchased product’ the use of repetitive advertising may cause trial purchase. As cash flow is the result of all flows, its degradation is a symptom of a malfunction that needs … [Read More...], Change Management Model: A change is a change from a previous situation. Modern advertising informs, guides, educates as well as project buyers, so that they can buy in­telligently and raise their standard of living. The customers are educated about proper way of using a product, the comparative and competitive prices, promotional offers with limited time frame etc. Nowadays, many companies are using advertisement to attract customers and it plays an important role during product or services life stages. Though advertising does not mean selling of products and services but it helps in increasing your sales. Such information increases the knowledge base of customers; who can develop the ability of evolution and analysis. While the manufacturers, customers and salesman are the direct beneficiaries, the indirect benefits will be for the whole society. Advertising creates awareness in people. For example, a company that has to deal directly with customers often requires proper implementation of strategies for, The world is so big and so are the problems of the people living inside it. Print Advertising Once a huge driver of sales, print is taking a back seat to the many digital forms of advertising now available to marketers. ii. Advertising helps in increasing awareness among people. They are the producers and manufacturers, customers, salesmen and the society as a whole. What Are Its Causes & Process? Advertising can furthermore provide to communicate an idea to a huge amount of peo… A Forbes article (2012) stated: “Advertising plays the same role in your media diet that vegetables play in your regular diet; most of us would prefer to skip that course and go straight to dessert. Advertising provides direct employment to large number of people engaged in designing, writing and issuing advertisements. Wide reach of advertisement – its ability to reach a large number of targeted customers simultaneously and its long lasting impact on the mind of customers makes this mode of promotion more cost effective in comparison to other promotional techniques like personal selling. Many statesmen have appreciated the role of advertising in politics and business. An insight into the interdependencies between advertising decisions and those on product design, pricing and dealer’s choice. Solves Societal Problems 4. Over the years, advertising industry has witnessed the annual growth of over 15 per cent and it reflects the buoyancy and optimism in Indian economy. The role of advertising can be analyzed from five different angles namely, manufacturers; middleman; sales force; customer and society. Advertisement is an audio – visual mode of communication and hence its impact on the customer is long lasting and people remember the product for a long time. The innovative production techniques not only help to increase the level of production but also improve the quality of the product. This level of spending supports thousands of companies and millions of jobs. Well! Some of the benefits enjoyed by customers are: An advertisement gives many information relating to product, firm, nation etc. That speaks volumes of the importance music has in advertising and branding. 7 – Qualities of an Auditor You Must Know, What is an Operational Audit? Advertising helps in keeping the consumers informed about the arrival of a new product. (c) Helps to control price of product – Through advertising, it is possible to control price of the product especially in retail market. Advertisement displays the features, uses and benefits of the new product. Benefits of Retail Advertisements for Customers: The benefits of retail advertisements for customers are as follows: i. In case of selective or exclusive distribution strategy adopted for the product, advertising is mainly used to provide information about the product availability. With large scale operations, the cost of production decreases and results in increased earnings. Advertisement creates and increases demand of the consumers for the product and thus helps to increase and maintain the sales volume. All the images and videos present on the Business Study Notes are not owned by us, if you found anything under copyrights, please, Investment Analysis and Portfolio Management. Objectives and Importance of Advertising Advertising is the best way to communicate to the customers. The basic objective of advertising in this case is to convince the customers about the superiority of a product in comparison with other products in the same line. Advertising helps the manufacturer, in this regard, to face competition effectively. Importance # 1. It lets the potential buyers, general public and end users to be aware and familiar with the brands, their goods and services. The importance of digital marketing is that it allows you to market to people in ways that show you respect them and value them as human beings. Importance of Advertising – With Direct Beneficiaries: Benefits to Producers and Manufacturers, Customers, Salesman and Society. Almost all producers introduce their products to market through celebrities who have powerful impact on consumers. 3. Although the quality of the screenplay is important, music helps catapult a distinct emotional connection. Matching the advertising team with product positioning strategy is another important task. The nature and scope of advertising for a product in turn depends upon the mix of various marketing tools in a given situation. A planned shopping gives happiness and the unplanned results into either dissatisfaction or sadness. Products and services are contrived available to consumers by numerous intermediaries like wholesalers and vendors. Since from that time, it is in use by marketers for getting the word out that their business is about something else than that the rest of the market has to offer. Convenience: Targeted informative advertisements make the customer’s decision making process easier as they get to know what suits their requirements and budget. Discuss Cash Analysis in Business. 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. A producer can shift from small scale to medium and to large scale production. Easy Convincing – As the advertisements had done some part of giving information to customers, salesmen can very easily convince the customers. 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