Benefits or Advantages of Advertising
The various economic and social advantages of advertising can be classified into different categories from the point of view of different categories of person involved. They are:
- Advantages of Advertising to the manufacturers.
- Advantages of Advertising to the wholesalers.
- Advantages of Advertising to the retailers.
- Advantages of Advertising to the salesmen.
- Advantages of Advertising to the consumers.
- Advantages of Advertising to the society in general.
Table of Contents
Advantages of Advertising to the Manufacturers
1. Advertising creates demand for the new products introduced in the market by the producers.
2. It helps the producers to maintain the existing market for their goods.
3. It helps the producers to expand the market for their goods.
4. It helps the manufacturers to overcome competition by tactfully emphasizing various features of their products.
5. Advertising helps the manufacturers to warn the public against imitation of their product by others through precise description of the special features of their product.
6. Constant advertisement popularizes a product and builds up reputation and goodwill for the producers.
7. It helps the manufacturers to contact the public directly. Such a direct contact between the manufacturers and the consumers results in the elimination of middlemen. The elimination of middlemen helps the manufacturers to reduce their selling costs to certain extent.
8. It protects the manufacturers from undue dependence on middlemen. Middlemen cannot pressurize the manufacturers of widely advertised goods regarding the terms and conditions of sales.
9. It helps the producers to secure dealers for their goods. Dealers, generally come forward to stock the advertised goods.
10. Advertisements contributes to increase the volume of sales and thereby, reduces the cost of marketing per unit of goods sold directly.
11. By bringing about increased sales and production, it contributes to reduction in the cost of production per unit.
12. By constant advertisement, manufacturers can maintain effective control over the wholesale and retail prices of their products.
13. Advertisements helps the manufacturers to maintain a steady demand for their products by avoiding seasonal fluctuations in demand. In short, it stabilizes the volume of sales.
14. It increases the rate of stock turnover.
Advantages of Advertising to the Wholesalers
1. Advertisements facilitate easy sale of product, as the availability and the distinctive features of the products are already brought to the notice of the consumers by the manufacturer through advertisement. In short, it reduces the selling efforts and the selling expenses of the wholesalers.
2. It increases the stock turnover rate of the wholesalers.
3. The reputation for a product created by the manufacturer through advertisements is shared by the wholesalers.
4. Advertising provides product information to the wholesalers.
Advantages of Advertising to the Retailers
1. Advertisements reduces the sales efforts and the selling expenses of the retailers, as the consumers are already aware of the availability and the features of the advertised products.
2. It contributes to large sales volume.
3. It increases the stock turnover rate of the retailers.
4. The reputation of the product created by the manufacturer through advertisement is shared by the retailers.
5. It enables the retailers to have product information.
6. Advertising builds up prestige for the retailers’ shops
7. It stabilizes the prices and thereby protects the retailers against any loss resulting from price fluctuations.
8. A small retailer cannot afford to employ salesmen for canvassing to get orders. But because of the advertisements placed by the manufacturer, he can get orders easily.
Advantages of Advertising to the Salesmen
Advertising is beneficial to the salesmen in several ways. The important benefits of advertising to the salesmen are:
1. Advertising prepares the ground work for salesmen. That is, it reduces the work of the salesmen, as part of their work has already been performed for them by advertising.
2. It helps the salesmen to secure increased sales by acquainting more people with the merits of the products.
3. It gives confidence to the salesmen to perform their promotional efforts effectively.
4. It helps the salesmen to reach the right man with least efforts.
5. The contact established by salesmen with customers is made permanent by advertising.
Advantages of Advertising to the Consumers
1. An advertisement brings the new products to the notice of the consumers and helps them satisfy their wants.
2. It raises the standard of living of the consumers by stimulating their desire for a variety of new products.
3. It provides protection against deception, because advertised products are, generally, of good quality.
4. It saves time, effort and money of the consumers in obtaining information about the product.
5. Advertisements contributes to the reduction in the selling prices of goods for the consumers by encouraging increased sales and production.
6. By providing information about the relative merits of the various goods available in the market, advertising helps the consumes in intelligent buying.
7. Prices of advertised goods are known to the consumers. As such, the consumers can get the goods at the advertised retail prices and protect themselves against the higher prices that may be charged by the dealers.
8. Modern advertisement is highly informative. Through it, the consumers can know the varied uses of the products.
Advantages of Advertising to the Society
1. Advertisements raises the standard of living of the people by stimulating their desire for a variety of new products.
2. It educates the public. The facts, figures, slogans, stories, etc., used in an advertisement help the members of the society to improve their knowledge.
3. It generates employment opportunities by promoting sales and enhancing production. Further, many persons are directly engaged in advertising process as artists, photographers, etc.
4. It promotes art and talent by giving an opportunity to artists to do creative work in preparing the advertisement copy.
5. It lowers the selling price of newspapers and magazines by providing income through advertisements published.
6. Advertisements are helpful to the people to announce births, deaths, marriage, etc., for the benefit of other members in society.
7. It transforms the culture of a nation.
8. It stabilizes national production.
9. It stabilizes the price level and avoids or minimizes the fluctuations in prices.
