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Wednesday, 22 June 2011

What is the role of Advertising in the present business world and the functions of Advertising

Advertising :-
According to some people advertisement is the printed salesmanship which makes the goods popular. In other word we can say that advertising is a technique of influencing the minds of the public to buy the goods advertised. It is a powerful art of attracting the customers for a particular goods. Advertising makes the commodity popular among the people through the use of media like newspapers, radio, t.v. and sign boards. It attracts the people and creates demand for the product.

Advantages or Functions or Importance of Advertising :-
Today in the modern business advertising is playing very effective role. It is used as too of marketing. The expenditure on advertising is considered as a profitable investment.

Following are the main advantages of advertising :

1. Increases Sale :-
Advertising is very useful in creating the demand and increasing the sale. As the sale of any commodity increases, its production also increases.

2. Provides Employment :-
In the advertising industry thousands people are employed. On the other hand when the sale of the goods increases, new factories are established and rate of employment increases.

3. Save Time :-
Advertising enables the consumer to select the commodity according to his requirement within no time. Because he has been already informed about the standard of various goods through advertising.

4. Introduces New Products :-
New products can be introduced in the market within short time through advertisement.

5. Establishes Goodwill :-
Advertising establishes reputation and goodwill of the firm.

6. Encourages Competition :-
Advertising encourages competition among the producers. So competitors in the quality and price of the product.

7. Reduces Cost :-
Advertising increases the sale and encourages the produce the goods on large scale. Due to large scale economies cost of production reduces.

8. Changes the Living Standard :-
Advertising brings greater change in the habits attitudes and standard of living of the public.

9. Increases Profit :-
Advertising increases the sale and total profit of the producer. Due t this we say that advertising is a profitable investment.

10. Advantage to the Consumer :-
Advertising supplies up to date information about the competition products and their qualities.

11. Educative Value :-
Advertising teaches the people the benefits of savings. It also creates the sense of responsibility among the people. For example to increase the savings in the country and to control the population growth advertising has played very effective role.

12. Direct Sale :-
Through advertising producer is also introduced direct in the market. People may purchase the goods directly from the producer and can save money.

13. Makes the Job Easy for Salesman :-
Advertising makes the salesman job easier. There is no need of explaining the qualities of a product to consumer. Through advertising customer is already well informed. So a salesman can sell the product without any effort.


Disadvantages of Advertising :-
There are also some demerits of advertising like economic waste. Due to expenditure on publicity the cost of production increases and it is beard by the consumer ultimately. Another disadvantage is that it restricts the competition and creates monopoly. It is also argued that advertising , creates frustration among the poor people. Sometimes advertisers also misguide the public. So there are the few disadvantages of advertising.

CONCLUSION :- After a long discussion we can say that it is a universal truth that advertising has played very effective role in expanding the market of various goods.

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