The booming stock market, price rationalisation across categories, exploding real estate and entertainment industry has opened up new markets for the advertisers. Advertising definition. Creative advertising is when a team of creatives come together to make a campaign or commercial that creatively and effectively tells the story of a brand or nonprofit. Importance of Advertising In a successful business, advertising play an essential and important role. Advertising strategies that increase the number of units sold stimulate economies in the production process. Role of Advertising Related to Consumer: 3. It helps firms to enter the market and facilitates the growth of market economic systems based on competition and availability of information. It promotes all the features and attributes of the product. It ensures repeated demand from the satisfied services provided by a firm. In such situation, advertising helps the consumer in comparing features; price; utility; quality etc. Its existence determines the buyer’s choice of a particular brand out of several brands. Small companies that cannot afford large advertising budgets can use public relations to get their name out there. Advertisements create awareness about the product. It fails to consider the possible effect of advertising on other categories of expenditure. the importance of advertising in tourism: In the tourism and hospitality sectors, where the product is a âserviceâ promotion is more vital than other industries. This will essentially help in … 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. 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 media is used for showcasing promotional content which communicated in various forms such as text, speech, images, videos using TV, radio, online, outdoor etc. Advertising has become the backbone of modern national and international marketing. It is these advertisements that bring product within the notice of general public. Advertising provides information about new products to the consumers. They are compelled by the recent developments and the cut throat competition resulting into the question of survival. The importance of advertising in business is summarised in the points below. The attempt by army recruitment is bases on a substantial advertising campaign, stressing the advantages of a military career. In short, advertising pays for many of the enjoyable entertainment and educational aspects of contemporary life, as well as lower product costs. This will help in raising the standard of life of people. When? Creation of Corporate Image, B: Benefits to Customers – 1. There is also research evidence which supports both the views and holds that ‘advertising not only provides information about which substitutes exist, it also provides consumers with recall cues so that they consider more substitutes at the time of purchase’. Importance of Digital Marketing for Working Professionals: Let’s talk with respect to each profile or individual type, about its suitability to everyone. Successful Introduction of New Product: The advertising is undertaken to introduce an altogether new product. Similarly, the price of newspapers, professional sports, radio and TV programmes, and the like might be prohibitive without advertising to share the expense. Importance of Advertising in Modern Marketing: Advertising your brand is what needs the most of your brandâs energy in letting it achieve an enormous customer base for itself. Thus, the advertising sector generates direct employment to large number of creative and enthusiastic people. Advertising is helpful to create regular and steady demand for products. Advertising by facilitating mass production and mass distribution has provided immense employment opportunities to people. It warrants production on large scale to meet the demand of increased number of consumers. It has made possible tremendous industrialisation and economic development in many countries. Non-business enterprises have also recognised the importance of advertising. 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. It increases the utility of existing products, and. The more and more uses of a product are convinced, the widest base for product can be created. Economic Rationale to Use Advertising. Advertising- helps in launching many new products in the market. However, the level of production needs to be increased in order to meet this increase in demand. What Are Its Causes & Process? As a part of the marketing plan, a marketer must develop a public relations strategy. Today, the role of advertising has increased so widely that it has become an essential function of business. Indirectly, it gives employment by supporting all those industries like – paper; colour; electronic etc. This is especially found true for market leaders and for low cost products. The advertisement facilitates quick sales and also increased demand. That speaks volumes of the importance music has in advertising and branding. Paid form: Advertising is always a paid form of communication and hence commercial in nature. All Medias of advertising flourish in operations and provide solution to many of the societal problems. In other words, advertising may be considered as a cost reducing exercise taking place due to a rise in product demand. 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. 2. The existence of the concept of advertising dates back to Ancient Egypt and this alone pretty much explains how advantageous advertising can be for the perfect functioning of your business. Advertising promotes consumer satisfaction. The health department popularises family planning through advertising. Advertising is one of the best means by which the sale of an existing product can be increased. Benefits to Producers and Manufacturers: Benefits of Retail Advertisements for Customers, Importance of Advertisement – Introduction of New Product, Mass Appeal, Increasing Sales Volume, Providing Information to Customers and a Few Others, Advertising: Objectives, Function and Significance of Advertising a Product. Advertising has become an important factor in the campaigns to achieve such societal-oriented objectives as the discontinuance of smoking, family planning, physical fitness, and the elimination of drug abuse. Its importance can be explained as follows: Advertising plays a very important role for manufacturers. It provides information regarding the quality, weight, price, size, packaging and the brand. 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. (Kotler 2010) In this way advertising improves social welfare. Advertising affects the sensitivity of product’s demand to changes in its price. Since the advertisements have educative value, they affect the thoughts, gestures and behavior of people. We can tell numerous people about a product or service in the quickest time-interval at the lowest possible cost. Advertisement also helps to expand the scope of the market geographically. The level of advertising exposure is related to distribution objectives and strategies. Because, there are certain fixed costs which are incurred at all levels of production. 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. Filed Under: Advertising & Promotion, Marketing Tagged With: importance of advertising in business, importance of advertising in marketing, Looking for business model innovation? Production and marketing heed to be continuous and throughout the year, both in busy and off seasons. This level of spending supports thousands of companies and millions of jobs. This increase in the level of production leads to reduction in cost. The awareness of the product or services can be created through highlighting the unique features of the brand. Once customers are familiar with your brand, they are more likely to recommend your brand to friends and family, therefore incâ¦ Advertising is crucial for the launch (introduction) of a brand new product, service or idea in the market. No business can succeed without suitable advertising, for advertising makes people aware of new products, and of the new want-satisfying attributes of these products. Its Objectives, Advantages & Disadvantages. Raymond, the apparel retail chain, primarily used television and print advertising to promote the experiential aspects associated with shopping at its stores. Each company that puts forward a new package or offer puts an ad about it on television or the internet and the features that this package has to offer to its customer. Marketing management has obtained importance to meet thriving competition and the need for developed strategies of distribution to reduce cost and to increase profits. The production costs assigned to each unit of output are lowered. Packaging, trade mark and various other attributes of product as its taste, colour, texture, aroma, style and design are other essential elements of effective advertising. Advertising has a central role to play in developing brand image, whether at the corporate, retail or product level. 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. This cost benefit is passed on to the readers. Since its origin, advertising has undoubtedly been an integral part of economic and socio-cultural growth of any market based economy. Advertising is essential for consumer due to following reasons: (a) Quick decision making and saves time – In today’s competitive world market is full of different types of product which satisfy needs and want. In films, soundtracks or pieces of music directly relate to how viewers will feel. 3. Purchasing these products helps in raising their standard of living. Ethics in advertising is important, because by acting ethically with their advertising, a company is being responsible towards the needs of the customer. The evidence demonstrating the manipulative power of advertising is shaky because so many factors contribute to the choices we make. Advertising has become inevitable in the contemporary business environment. It may be about availability of family budget, how to bring a product, packing, payment, quantity needed etc. This will enhance the understanding level and knowledge of remote areas. It is also true that the need for time to time advertising is also dependent upon the field in which a company is operating. Ads from any era give accurate and sometimes shocking glimpses into what was important in society at the time. ii. i. Advertising as a mass communication mode facilitates an intensive distribution of product. As the advertisements give almost every information about product, availability, prices offers etc, the customers can plan well before going for shopping. Advertising is important for both new and existing businesses, as it helps to communicate important information to customers and is one of the first steps in building strong relationships. Product is at the very heart of an advertising programme. Some of its types, such as an ad in the newspaper or on the radio, do not require much money, where other forms of advertising, such as television, require significant funding. Advertising creates awareness in people. Business promoting is an active process which needs to be very closely scrutinized for obtaining the best results. Just demand catalyst ; it leads to lower cost of production and mass distribution has provided employment. On competition and availability of needed goods at reasonable price – advertising promotes good quality product by the! 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