Read this specific article to learn about the benefits of advertising or advertisements in the era of the modern business world…
Advertising plays a very crucial role in the developing economy of India. It helps to categorize the benefits according to their status:-
(What are the benefit of advertising)…
1. The benefit of advertising to manufacturers or producers.
2. The benefit of advertising to salesforce or salesman.
3. The benefit of advertising to consumers or customers.
4. The benefit of advertising to society.
1. Benefits of advertising to manufacturers or producers-
This is the first benefit and in this point, the advertiser focuses on to the manufacturers or producers related activities:-
(i) Increased Sales:
The main purpose of any advertiser is to enhance the sales volume of the product by increasing the demand for the product. Goods produced on the bulk scale are not or cannot be sold at their own. The advertiser work is to introduce the new product in the market so that the prospects (consumers) can easily understand them and may think to purchase it.
By repeating advertising, the company improve the knowledge of existing buyers and also helps to expand the market for their products by attracting new prospects to their products. It can also help to achieve the main objective i.e., minimum cost = maximum profits.
(ii) Fixed Demand:
Advertising helps to create or fixed the demand of consumers by enhancing sales. The regular way of advertising helps to ensure a more loyal or more regular client and also maintain the annual sales volume capacity.
Advertising also suggests the seasonal demand for many products by suggesting alternative uses of a particular product to the public.
(iii) Quick Turnover:
A well modified organized advertising campaign activity creates a highly responsive or judgemental market, which in turn ensures a faster turnover of the goods or materials. It helps to reduce the investment capacity in working capital and increase the profit capacity of the business.
(iv) Better Dealer Interest:
The dealers (whether it is retailers or agent or wholesalers) who sell advertised goods are greatly associated with the advertisement channels made by the producers.
Advertising helps to create demand in the market, which is shared by every retailer without any investment in the advertisement. So, they create more interest in promoted or advertised products.
(v) Creation of Goodwill:
Advertising has the main motive to create the goodwill of a particular product or the company so that the consumers can know them and make our trust towards their products.
Goodwill is a valuable asset for a business because it helps to increase the sales of existing or newly developed products. For Example- Tata, Godrej, Birls, etc, all sell the whole variety of their products only on the power of their goodwill capacity.
2. The benefit of advertising to salesforce or salespersons-
There are two aspects of promoting a product i.e., personal selling and advertising. They are interrelated or supplementary to each other. Advertising supports the sales personnel of the company in the following manner:
(i) It creates a colorful background:
A salesman is a combination of activeness, peacefulness, and well-trained in his mission of distribution. When a salesperson market or promote a particular product, then the background music is provided by the advertising. Therefore, an advertisement helps the salesperson to make all things easy.
(ii) Advertising reduces the burdens of tedious jobs:
Without advertising, the work of a salesman becomes very riskful and difficult. Through advertisements, customers can easily understand the behavior of a particular product. They make his tasks very easier and comfortable. A salesperson always focuses on to reduce the time of gap between the selling activities and this time of gap is reduced with the help of advertisements.
3. Benefits of advertising to consumers or customers-
The effective aim of marketing is to satisfy the needs and wants of customers or consumers. It helps consumers in the following ways:
(i) A guiding force in making a purchase action:
Advertising helps the customers in taking actions regarding the pros and cons of various products, special features like prices, quality, etc., of products from various manufacturers because of advertising circulates useful information regarding products of different producers.
In this way, it educates the customer towards a particular product and provides better knowledge so that they can easily understand or purchase the product through the given advertisement.
(ii) Improvement in quality:
Goods are advertised under specific brand names. An advertisement advertises the company’s name with their product so that the consumers can easily make decisions towards them. In this world, the consumers identify the goods with the brand names as, every brand known for quality, the mark of value, a symbol of excellence, and pricing tag.
The manufacturers try to maintain the quality of goods so that the customer can easily remember the brand names. Similarly, If the manufacturer fails to maintain the quality of goods, then the brand will lose its market very soon.
(iii) Elimination of unnecessary Intermediaries:
By promoting the goods, a number of manufacturers come in the direct touch of the customers. If the quality of a product is good, the manufacturer gets a reputation in the whole market. In this process, the number of intermediaries like retailers or agents is eliminated. It gives benefits to manufacturers or consumers both.
On the other hand, it will help to increase the profit margins of the manufacturer and reduce the prices of goods for the customers.
4. Benefits of advertising to society-
The merits of advertising towards society consists of various points such as:-
(i) Existence of the press:
At the starting stage of advertising, advertisements generally published on the corner sides of the newspapers. But in the present situation is just the opposite. In this modern era, the advertisements published on various things like journals, newspapers, magazines, periodicals, etc.
(ii) Change in motivation:
Day by day, advertising is totally changed with the respect of human motivation. Some years ago, peoples are very much conscious or worried about the necessities of life and they also lived or worked for them but now the whole things are shifted towards self-satisfaction like comforts, luxuries, and semi-luxuries.
So the motive of life is changing due to a change in motivation.
(iii) Better standard of living:
Advertising plays an efficient role in raising the standard of living. Advertising creates a desire for new items through the knowledge of buyers for a better standard of living. It helps to target the customers in a mass way, which in turn down the pressure on production (means produce goods or materials in a large quantity with optimum quality).
(iv) Gainful employment opportunities:
Advertising helps to provide better opportunities to gain employment facilities to a number of people directly or indirectly.
Direct employment opportunities are available for talented persons in specialized jobs like artists, painters, photographers, writers, singers, etc., Similarly, indirect employment helps to create employment direction like production of goods be sustaining and creating demand for different goods and services.
So, these are the full explanation on the topic of benefits of advertising…