What is the significance of advertisement?

Answer 1

Significance of advertising:

In every walk of business and industrial activities, there is a throughout competition, therefore no business can survive without advertisement. advertisement is useful not only for the business enterprises but for the community as a whole. the economic utility of advertisement can broadly be divided into five categories:

1) Benefits to Manufacturers:

• Helps in Creation of demand for new products
• Helps in Stabilizing the demand for the product
• Helps in increasing the demand for existing products
• Helps in introduction of new products
• retail price maintainance
• increase in profits
• Creates a brand image in the minds of consumers
• Reduces the cost of production
• Helpful in establishing a direct contact between manufacturers and consumers
• Helpful in getting efficient, experienced and effective middlemen

2) Benefits to Middlemen:

• Increases the rate of turnover of stock.
• Convenient in selling
• Stability in sales and profits
• Reputation created is shared by the wholesalers and the retailers alike.
• Ensures more economical selling
• Increase in sales
• Increase in goodwill

3) Benefits to Consumers:

• Provides knowledge of new products
• Convenient in purchasing, i.e., where and when to buy
• Provides opportunities to compare the merits and demerits of various substitute products
• Saving of time and labor
• No possibility of cheating by sellers
• Modern advertisements are highly informative
• Increase in the standard of living
• Elimination of middlemen
• Stresses quality and very often prices that forms an indirect guarantee to the consumers.
• Provides knowledge of alternative uses of products.

4) Benefits to Salesmen:

· Makes the introduction of new products easy

· Reduces sales efforts

· Establish good and permanent contact with the customers

· Helps in weighing the effectiveness of advertising.

5) Benefits to Community:

· Creates more employment opportunities

· Increases standard of living

· Encourages healthy competition

· Encourages research and development

· Helpful in industrial progress and prosperity

· Encourages art and designing

· Educative

Answer 2

The significance of advertising is outstanding when it comes to building company revenues in reference to sales and brand recognition. Without advertising many consumer and business markets would not know of a company or it's products available to them. Advertising is responsible for building economies and business revenue. Even an employment resume is a form of advertising.