In this way advertising improves social welfare. According to the Advertising Association of the UK – However, getting to know the importance of advertising is just the beginning of the journey to grow your brand. Advertisement displays the features, uses and benefits of the new product. Marketing, Products, Advertising, Importance, Importance of Advertising. Importance of Advertising – Marketing, Politics, Consumer Satisfaction and Economic Growth 1. Majority of consumers can repeat the names of Tata, Reliance, Airtel, Sony, Vodafone etc. Advertisements provide qualitative information about various products using facts, figures, slogans etc. WHY IS DIGITAL ADVERTISING IMPORTANT Digital advertising creates powerful opportunities to tell brand stories at scale and in context. One thing for sure is that advertising gives every business a chance to convey a message of how they want people to perceive their brand. (Hobbs, 2016). Advertising is not just demand catalyst; it leads to changes in people’s lifestyle too. Therefore, the following benefits accrue to producers: i. It has made possible tremendous industrialisation and economic development in many countries. It shows that the company understands its customers and their needs. The evidence demonstrating the manipulative power of advertising is shaky because so many factors contribute to the choices we make. When consumers are aware about the range of products, they are able to compare the price, quality and characteristics and pick up the best from among them. Advertising is crucial for the launch (introduction) of a brand new product, service or idea in the market. Salesman can only cover a limited market, while advertising can reach a very large and geographically widespread market with complete ease. It may be about availability of family budget, how to bring a product, packing, payment, quantity needed etc. It’s about showing better understanding and representation for different people, … Advertising informs consumers about the availability of substitutes and helps them in making informed choices of the products. Importance of Advertising Advertising helps in providing various information about the advertising firm, its products, qualities and place of availability of its products and so on. Reasonable Prices, C: Benefits to Salesman – 1. At each product life cycle stage the level and the kind of advertising is related to its price strategy. The prices of the same type of product may vary from producer to producer. : 201708981D, Digital Marketing Analytics with Google Analytics, Unsure Which Course to Take? Thus, advertising creates employment opportunities for a large section of people. Its existence determines the buyer’s choice of a particular brand out of several brands. It also allows a brand to establish a brand positioning in the minds of their target consumers while associating their brand with an idea or category that they want their consumers to remember them as. Because, there are certain fixed costs which are incurred at all levels of production. Press media cannot continue only with price paid by the readers, the advertisements bring sizeable amount revenues and it will be a strong financial support for the press. The reason for using celebrities as endorsers is due to their huge potential influence. (b) Act as Salesmen – Advertising has been rightly described as salesmanship in print. Also known as the consideration stage of a consumer decision-making process, this is where consumers compare the options available based on objective and subjective characteristics to determine which of the options best suit their needs. Outlays on advertising certainly attest to the management’s faith in the ability of advertising efforts to produce additional sales. Production and marketing heed to be continuous and throughout the year, both in busy and off seasons. With large scale operations, the cost of production decreases and results in increased earnings. For routine or habitual kind of purchases like purchase of glucose biscuits, the mere exposure to an advertisement is likely to trigger a direct purchase action. This cost benefit is passed on to the readers. With the technological advancements, the variety of Medias has made their entry in advertising sector. This will result in increased product usage and the demand for the same. Image Guidelines 5. The health department popularises family planning through advertising. Thus, the consumers become aware about the products available in the market. Advertising is important as it enables brands to display the unique selling points of their products and services in a few minutes or even seconds. At the same time, advertising also keeps the producers updated about the competing products available in the market. So, why is advertising important when this happens? Non-business enterprises have also recognised the importance of advertising. Today, the role of advertising has increased so widely that it has become an essential function of business. Therefore, manufacturers advertise about the usefulness of product in all the seasons. In case the trial experience is satisfactory, it is expected to result into final purchase of a product. When customers develop brand loyalty, they are unlikely to switch to other brands easily. Consumers live in a time where they are extremely spoilt for choice and as such, competition amongst businesses is constantly at sky-high. Though, larger businesses are fully aware of the importance of advertising, since they know that advertising is the main tactic that brings them close to new customers on time. The size of advertising industry, rate of increase in its profitability increased budget allocations for ad spend at the organizations level, and the multiplicity of products being advertised provide evidence in this regard. There is reported an increase of 45.5 per cent in inbound traffic and additional earnings of Rs 8,274 crores in the year 2005 over that in the year 2003. The importance of advertising has grown so much over the years that now it is considered to be one of the most essential factors to the growth and success of any particular business or company. Makes Your Brand Visible To More People. Advertising helps consumers find best product for themselves by facilitating comparison among various products available in the market. Some of the products, through their repeated exposure at times, become a matter of lifestyle statement for its consumers. On the other hand, Apple’s brand value has been constantly on the rise over the past 10 years and ranked first on Interbrand Best Global Brands in 2019 with a brand value of $234 Million. Advertising is emerging as a profession which offers vast employment opportunities. Middlemen can increase their profits because advertising helps in the expansion of their sales. Mainly, the four groups can be identified who are the direct beneficiaries of advertising. Advertising- helps in launching many new products in the market. The advertisement helps in fighting there societal problems. In fact, it is reasonable to say that promotion now plays a larger role in business than it ever did in the past. Creating awareness and interest among the public in respect of the new product is easily achieved through the use of advertising media. Advertising is not only beneficial for manufacturer; retailer and customer but also for the society. iv. It is also the only medium that a business has complete control over when they want to get their message across at the right time. This means you can’t really afford to ignore online advertising as most of your customers are researching online. With more than 14 years in the digital field, Roy has managed a wide range of both paid and owned digital channels from SEM, Social Media, Display, Affiliate Marketing, SEO, Marketing Automation, and Mobile Marketing. Keen to see the bigger picture of advertising? 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. By generating buzz, it means that there would be word-of-mouth marketing involved, and this form of marketing as mentioned earlier helps to build the credibility of the brand as well as a consumers’ trust towards it (Smith, 2017). It is necessary for producers, consumers as well as the society. Simply because an average person sees at least 5,000 ads per day which means that it is possible for your brand’s advertisements to reach out to a large audience while conveying the unique selling points of your products or businesses in just a few minutes or even seconds. Its imperativeness has increased in this era of ‘globalization and liberalization’ around the world. Advertising also creates mindshare which would eventually be of value to your brand and lead to high brand equity in the long run. And we’re not going to get the chance to get people to remember much about us. For this purpose, the advertisement should emphasize the usefulness of the product, its quality, price advantages, etc., so as to win over the potential buyers and make them actual buyers. Importance of Advertising Agency- The importance of advertising agency explains the factors which are very essential to determine the nature of the product, advertising budgets, and so on. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising to share the expense. They were successful in using the 2014 FIFA World Cup as leverage to advertise their brand and increase brand equity as evident from their brand value where it peaked at an all-time high of $81 Million, ranking 3rd on the Interbrand Best Global Brands in 2014 (“Best Brands – Interbrand”, 2019). The large-scale production brings economy of scale and affects the cost of production and in turn the product price. Advertising not only is the fastest way to accurately convey the information of a product to a customer, but it also enables your company to have control over the modes of distribution which is categorized into three broad categories — Paid, Owned, and Earned media. This makes their life comfort. Business firms very often advertise for establishing an image for the product and creating customers’ loyalty for that product. It ensures repeated demand from the satisfied services provided by a firm. Creation of Corporate Image, B: Benefits to Customers – 1. Due to this, bad product goes out of the market. As advertising enables businesses to reach out to a large amount of audience, more consumers are able to discover the products and services that your company offers while understanding the key features of it within a few minutes or even seconds. Advertising is also important for the role it plays in social education and welfare. No company is. As the advertisements give almost every information about product, availability, prices offers etc, the customers can plan well before going for shopping. By segmenting your customers, you are grouping them according to the various criteria – demographics and media usage. It encourages manufacturers to improve the quality of products through research and development. This means you can’t really afford to ignore online advertising as most of your customers are researching online. Businesses are also able to make use of advertising to cross-sell the other products and services that their company provides because it would give the consumers a sense of familiarity when they are seeking to purchase a new product or service. On the other hand, for the purchase of a product like automobile advertising is primarily used to generate awareness and impart knowledge about the product. Easy Convincing – As the advertisements had done some part of giving information to customers, salesmen can very easily convince the customers. The main purpose of advertising during this stage is not to make a sale but rather to raise awareness about the products that you are able to provide to satisfy their needs. Last but not least, when a competitor’s product provides similar benefits, it influences a consumer’s decision-making process by constant reminders as they may purchase from a brand that they feel more familiar with as compared to a brand they have never heard about. This is what we should be considering as we work to increase diversity in our advertising. Very often greedy retailer charge higher price from the customer. To understand this in a better way, think about the promotional strategies that various networking agencies utilize. In case the manufacturer tries to do so, the consumers can seek protection under the Consumer Protection Act. In case of selective or exclusive distribution strategy adopted for the product, advertising is mainly used to provide information about the product availability. Some examples of brands with mindshare and high brand equity would be Coca-Cola and Apple as evident from their brand value over the years. Advertising by facilitating mass production and mass distribution has provided immense employment opportunities to people. As a powerful technique of promoting sales, it has been doing wonders in the area of distribution. Since the advertisements have educative value, they affect the thoughts, gestures and behavior of people. Advertising has gained a significant place in the different areas of society. This will help in raising the standard of life of people. It also allows a brand to establish a brand positioning in the minds of their target consumers while associating their brand with an idea or category that they want their consumers to remember them as. The actual aim of advertising is therefore not to ‘sell’ but to induce people to try the product or service offered and to prepare them for satisfaction in its use by ‘pre-sampling’ it verbally. 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. In this way, he finds to reach the consumers and operate profitably in the market. However, just like anything else in life, there are bound to be positive and negative effects of advertising. Importance of Advertising in Modern Marketing: Advertising your brand is what needs the most of your brand’s energy in letting it achieve an enormous customer base for itself. Since such decision-making situation requires more of buyer’s deliberations, it is less likely that attitude change occurs due to advertising only. Take away actionable digital marketing strategies and get certified. Interested to learn more than just Digital Advertising? 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. Disclaimer 9. The benefits which advertising offers to middlemen are: (a) Quick Sale – Every retailer holds stock of different producer. It also gives the audience a perspective that the product is in demand as “The perception that you can afford advertising is often enough to sell and resell prospects and customers alike and makes it easier to get attention for your entire message.” (“5 Reasons Why You Must Advertise”, n.d.). A true adopter in analytics and data-driven campaigns, Roy uses this principle to grow businesses in new customers’ acquisitions and demand generation. (b) Better Quality Product at Reasonable Price – Advertising promotes good quality product by printing their image in the minds of consumer. From producers’ perspective, the increase in product demand due to advertising enables production at a large-scale. Advertisements help various media like newspapers, magazines etc., to cover a major portion of their costs. All the activities related to advertising need human resources to work creatively, efficiently and constructively. As a powerful technique of promoting sales, it has been doing wonders in the area of distribution. An indelible impact can be created by effective advertisement which lays foundation for rushing of a product in any intended market. Instead, they spend on advertising, which attracts customers to the shops, where counter salesmen cater to their need. Customers are introduced with the new products available in the market and are induced to buy the new product available. Lower consumer prices then allow these products to become available to more people. Advertising influences the economic growth of a country. It helps firms to enter the market and facilitates the growth of market economic systems based on competition and availability of information. For a ‘less expensive frequently purchased product’ the use of repetitive advertising may cause trial purchase. It is the backbone of modern national and international marketing. This improves the popularity and familiarity of the product. According to one school of thought advertising makes people to learn more about the product and it substitutes which may reduce the price elasticity of a product’s demand. Advertising helps the consumers in the following ways: Advertising plays an important role in the modern competitive market. Typography influences how readers process information, and the most successful typography also engages the consumer. target rating points which shows media preference among its audiences) of their programme/editorial content. If the advertisement of any concerned product, service or idea is done correctly at a right place, through proper media, and within a particular time constraint, can attract many new customers. Here’s a quick question, would you rather buy from brand A who has advertised about how effective their laundry detergent is at removing stains from clothes or brand B that has no advertisements and you have zero ideas about the key features of the product? The upgrading of marketing is possible through advertising. Advertising thus increases the demand for a product. … Advertising is not only a provider of information about products, services, and availability at different retail locations, but also an important link between the advertiser and the receiver of the message in the retail sector. By doing so, you will be able to foresee what the customer needs and show it to them before they even realize it. There cannot be 100% similarity between two products. In this way, scarce resources can be exploited for more essential, purposes. It is a form of communication which informs, persuades and reminds customers of the qualities of the product. When you are thinking of launching a new product, an upcoming promotion, or raising awareness about the products or services that your company has to offer to the end-user, have you ever thought about advertising? Because, they have created their corporate image and become household names. In such situation, advertising helps the consumer in comparing features; price; utility; quality etc. 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. Through ads on various devices and channels, marketers can reach larger audiences in a way that is real-time and increasingly personal. Advertising is the best way to communicate to the customers. Some of the importance of advertising are:-, A: Benefits to Producers and Manufacturers – 1. Increase Foot Traffic. iii. The cumulative effects of non-stop ads on television, radio, print, and outdoor ads can be overwhelming and there is an involvement of advertising in the increased popularity of socially questionable behavior-cigarette smoking. Copyright 10. This builds long term goodwill and reputation for the organization. Get ready to spiral into the world of digital advertising with our Digital Advertising course. This arouses the interest of the consumers in the product and motivates them to try it out once. More coverage – The necessity of spending less time for each customer definitely helps salesmen in covering more number of customers in a single visit. Be it through the internet, print, broadcast, or outdoor media, those advertisements that you have seen are efforts made by companies to increase their brand awareness and also entice consumers to purchase their goods and services. There is a perception about positive relationship between the product price and the level of advertising activity for a product. New products are made familiar to consumers through advertising. Hence, advertising is essential, especially for a new product that has to be launched in the market. That is why; most of the retail organizations do not employ large number of travelling salesman. Not only is a business able to use storytelling to entice a consumer to buy a product. Advertising perform task of travelling salesmen at least cost. This increase in the level of production leads to reduction in cost. Potential customers are approached through suitable advertising media. Importance of Advertising: For Manufacturers, Middlemen, Consumer and Society, Importance of Advertising in the Retail Sector. For example, the criticism that “advertising costs too much” views an individual expense item in isolation. Advertising helps in keeping the consumers informed about the arrival of a new product. Prices are maintained at a competitive level to benefit the masses and producers. The innovative production techniques not only help to increase the level of production but also improve the quality of the product. Economic impact: One of the most important aspects of advertising is that it Life style and value systems are modified by advertisements. But for those truly committed to leading the way when it comes inclusive advertising, it’s about much more than that. It helps maintain competition and discourages monopoly. Almost all producers introduce their products to market through celebrities who have powerful impact on consumers. Successful Introduction of New Product 2. Advertising dealing with social issues such as child labour, liquor consumption, female foeticide, smoking, family planning etc. What? Easy Convincing 3. It has now entered the areas of politics, social achievements and economic growth. Advantages of Advertising: 12 Major Advantages of Advertising– Explained! They increase awareness of a company’s advertising, create positive feelings towards brands and are perceived by consumers as … Advertising is considered to be an important and compulsory activity on the part of manufacturers. It works as a pull factor in the market and creates demand for the product. 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. ii. A regular and frequent advertising helps the producer to obtain this objective. For an organization, advertising is important both as a promotional and as a marketing activity. It involves multiplicity of advertising activities involved in the development of an ad which add to its scale of operation in the economy. The customers are educated about proper way of using a product, the comparative and competitive prices, promotional offers with limited time frame etc. Advertising can be successfully used to build up or change public opinion, to create awareness of social problems, and to introduce social reforms. Advertising is one of the best means by which the sale of an existing product can be increased. Studies made by the market research firm, Yankelovich in 2007 have shown that an average person would have seen at least 5,000 advertisements in just one day. Not only is it a life-saver for many new businesses; advertising also helps businesses that have been running for years to reach out to a new market segment that they haven’t been able to penetrate. The products are offered to all types of customers regardless of the caste, religion, and creed, such advertisements plead about eradication of casteism. Consumers can thus avail products at a much lower rate which helps in raising their standard of living. Advertising allows manufacturers and sellers to place their products before the likely prospects, to attract their attention and awaken their interest. Your email address will not be published. Consumers learn about new and improved products and how to use the product innovations for their best purpose. This is a very complicated world, it’s a very noisy world. No. 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. Impressing New Uses of a Product 4. If the sale of a product or service is successful, it would also boost your sales team’s morale. Your email address will not be published. This type of segmentation requires one to do more research because as compared to the demographic and geographic segmentation, the psychographic segmentation does not have data that is as clear and concrete. At the same time, ‘…. By promoting different uses of a product, advertising helps consumption of that product at a variety of occasions. Just imagine the number of advertisements that one has come across in their lifetime. 9 Reasons for The Importance of Advertising. By the end of this article, you will be able to find out more about how advertising affects your business and helps you to achieve your organizational goals. Advertising facilitates the implementation of various sales promotion techniques in the market. To understand how you can hook your customers in their buying decision process, you have to first understand the behavior and thoughts of your customers. So we have to be really clear about what we want them to know about.”. Role of Advertising Related to Society: Importance of Advertising – With Direct Beneficiaries: Benefits to Producers and Manufacturers, Customers, Salesman and Society. Advertising provides direct employment to large number of people engaged in designing, writing and issuing advertisements. Advertising can develop the marketing system. It educates customers about new products and their diverse uses, iii. Online advertising is crucial for the success of an online business. Advertising assists in the realisation of marketing objectives of a company within a specified period of time. It builds a favourable image about the product in the minds of the consumers and hence enhances the image of the brand. Still advertisers are not objective and often slant and omit information to their benefit.’. The use of repetitive advertising, however, provides reassurance like in the case of Surf Excel ads and helps in reinforcing the product choice. A planned shopping gives happiness and the unplanned results into either dissatisfaction or sadness. Advertising helps in creating awareness about a product which leads to increase in its demand. This also enhances the goodwill of the manufacturer. The complexities of modern distribution have made advertising very essential for successful marketing of goods. The creation of more and better number of jobs lead to higher levels of income for the people and thus provides a more decent and human way of life for them. Brands with relatively high advertising budget are presumed as charging premium prices and brands that spend less than their competitors on advertising charge lesser price. When it comes to the importance of advertising in business, you need to select the best choice.