Advertising is defined as a non-personal promotion or presentation of ideas, services or products by an identified sponsor through paid announcements. It is a message that informs people about a specific product or service so that they are influenced enough to pay for it. Advertising is an important technique of communication that is beneficial to customers, salesman, business organizations as well as society. The advertisement expenses are considered a profitable investment and this is why every business organization is happy to bear it no matter the cost.
Advertising is considered one of the most effective weapons as it has the ability to influence a person’s mindset in a constructive manner and gain wide exposure. There have been cases when a particular advertisement has failed to create a mark or is associated with negative outcome but these cases are very far and few. Advertising is about collecting and using important information about the customers and competitors to gain a competitive advantage in the consumer market.
1. Importance of advertising for business
The business world is a stage where competition is extreme. Advertising is used by most of the firms to create awareness and build rapport so that they can ultimately show high profits. The importance of advertising for business is
Advertising helps to attract a new target audience so that you can convert potential customers to your actual customers. The changing scenarios in the market give you an opportunity through an attractive advertising campaign to extend your own consumer base easily.
The business organization uses advertising to create a direct connection with the consumers through various traditional and modern media like print, social, digital and electronic in a newspaper, business magazines, general-interest magazines, radio, television, mobile device, social media portals like Twitter, Facebook, Instagram YouTube and billboard, handbill, etc.
Promotes repeat business
The consumers in these competitive times have lots of choices which makes it easy for them to flip and change sides from one brand to another without too much of a consideration. Advertising reminds the customers why they had earlier joined the brand and why they should continue to do so.
A business organization uses advertising as an effective tool for connections. It now becomes easy to measure the increase in sales and customer response as a result of the advertising campaigns. Several digital media can easily provide granular data to measure the response as well as the behavior of the respondent. This important data and information helps a business organization to improve its selling platform to boost conversions based on behavioral traits
Advertising builds trust with potential as well as existing customers and creates brand awareness in the consumer market. Some firms create a viable partnership with non-profit organizations whereas others donate to local or charitable organizations so that it can increase awareness.
Helps to tackle competition
Advertising is one of the best keys that a business organization has in order to deal with its competitors. Some firms adopt an aggressive marketing campaign whereas others take a soft approach. Some try to woe the customers by mentioning the qualities of their products whereas others try to give a negative image to the products and services of their competitors.
Whatever the promotional policy a company takes the help of one thing is sure that the campaign is created to tackle competition in a manner that they think will be the best for their firm.
Helps to maintain continuous business
There are innumerable consumers in the market with numerous organizations ready to serve them at the drop of a hat. It is a fact that all the consumers will not buy from your company all the time and some consumers will join the firm and some will leave the firm whereas a good number will stay with you most of the time. Not everyone is in need of your product today but tomorrow might be a different story.
This is where advertising is at its best. It keeps all the consumers in the market informed about the products and services it is providing so that if tomorrow someone wants to shift allegiance or is in need of the product and service that you are providing then they will be ready to serve.
Influence buyer decisions
In business, advertising helps to influence the decision of buyers and drive purchases. Advertisers are trying to portray their products and services in a credible way so that they can inform the customers about it in clear terms.
Generate brand loyalty
It is advertising that helps the companies to target customers and make connections. It also helps to instill familiarity so that the customers can remain loyal to the brand because it is easy to maintain an existing relationship compared with making new ones.
Advertising ensures that your brand is always in the mind of the consumers and that they are aware of the products and services you are selling. Strong advertising campaigns give the consumer confidence that the brand is a good one and this results in increased sales figures. With a boost in volume, the profits will obviously not stay behind
2. Importance of advertising for consumers
The importance of advertising for consumers is
- Advertising gives the consumers information about the product or service and keeps them in the loop
- The best thing about advertising is that it helps to keep prices stable and this ultimately benefits the consumers as they do not have to pay increasing product prices after every few months
- Advertising helps to maintain the level of quality and this is an advantage for the consumer
- Advertising creates demand that leads to large scale production. Thus the seller can afford to keep product prices low and this ultimately benefits the consumers who have to pay low rates
- Advertising eliminates the services of middlemen by establishing a direct link between manufacturer and consumer. This results in low-priced goods
- Advertising helps to warn consumers of danger because it has become necessary to print advisory information along with the information of the product. For instance, whenever you see an advertisement for a cigarette brand you will also see the headline smoking is injurious to health. Similarly, pharmaceutical companies are also required by law to publish advisory that warns the consumer of any side effects after using that product or service.
- The consumer is now able to reduce his shopping time because advertising helps him to know when and where the product or service is available
- Customers have the option to compare products and buy the ones they think worthy
- Advertising is very informative as it provides the consumer information about the uses of the advertised product = to understand it in better terms
- Advertising provides the option of Mail Order Business to the consumer by encouraging direct sales. This helps the consumers residing in out-of-way areas to purchase the products easily
3. Importance of advertising for manufacturers
The importance of advertising for manufacturers is
- Makes the product or service attractive and thus is able to boost the volume of sales
- Advertising assist in introducing new products by the same manufacturer
- Advertising helps to create a direct link between the consumer and the manufacturer
- As part of the promotional strategy, the manufacturers are able to maintain their retail price
- The manufacturer is able to create personal goodwill in the market along with the reputation for its products
- Advertising helps to avoid seasonal fluctuations by maintaining the demand for the product
- Advertising is important for manufacturers because it is able to create a responsive market that will increase turnover and decrease inventory
- Advertising assist in an increase in sale volume and thus minimizing reduced product overheads
- Advertising is important to manufacturers as it helps them to meet competition in the market easily
4. Importance of advertising for society
Advertising is a paid publicity for a commercial message
- Employment generation
Advertising is a specific field with various types of people engaged in numerous activities like scriptwriting, block-making, screen printing, painting, creative thinking, designing the layout, collecting valuable information about the market, consumer as well as rival brands, etc. It provides direct employment to the people associated with it and indirect employment opportunities by boosting the volume related to the distribution and production of goods.
- High standards of living
The progress of any civilization depends on knowledge and it is advertising that provides important information to society. Advertising helps to boost the quality and variety of consumption habits of a consumer.
It has the ability to educate them about developing better ways of life through useful and related information. This results in high standards of living in the society
- Promotes exports
The importance of advertising is that it promotes exports and thus helps the nation to earn valuable foreign exchange
- Sustains the press
One of the important sources of revenue for media like television, radio, magazines, newspapers is derived through advertising. This results in reasonable rates of newspapers and magazines and thus the common people have to pay very low rates for the products.
- Creating healthy completion
The organizations that take help of advertising are conscious of keeping their brand image perfect in the market and this is why they keep on bettering their products and services. This endeavor results in healthy competition with rival brands because every company becomes determined on creating quality products. Ultimately it is the society who stands to gain from such attempts
5. Importance of advertising in today’s economy
Advertising plays a strong and powerful role in the economy. Its importance is
- Advertising provides consumers with important information about products and services. It becomes easy for the consumers to compare prices, features, and advantages of several products to determine which one will suit them best. It is now possible for the consumers to have complete information to choose products through advertising
- Advertising is the reason for an economic chain reaction that is able to create both direct and indirect sales as well as direct and indirect jobs opportunities
- Advertising helps in stimulating demand and economy
6. Importance of advertising to wholesalers and retailers
The importance of advertising to wholesalers and retailers is
- As the consumers are aware of the products and services through advertising it is possible for a scenario where the sale of the products is considered easy
- Advertising is important for wholesalers and retailers because it complements the selling activities
- As demand is already created through advertising it becomes possible to boost the rate of the stock turnover
- Advertising helps to create a positive image of the product or service. This image or reputation is shared equally by the wholesaler and retailer although they are not the ones spending on the advertising medium
- Selling overheads are reduced because of advertising and it leads to economical selling
- Advertising is a medium that gives product information even to the retailers and wholesalers
7. Importance of advertising to salesmen
Salesmanship and advertising are interlinked because the process helps in the distribution of goods. The importance of advertising to salesmen is
- Introducing the product becomes convenient as it is already advertised by the manufacturer
- The sales efforts are less because advertising has already prepared the groundwork for the salesman
- When the salesman makes direct contact with the consumer he can weigh the effectiveness of the advertising process
Pinky is an MBA in Marketing from the University of Mumbai. She loves helping people out in learning Marketing and sharing latest ideas and tactics for growing businesses.