Question

As a new advertising manager of a company you have been asked to write out a proposal stating why the company should advertise and it’s benefits to the company.

chose the Accounting subject to allow me post the question, but the course is Advertising.

Answer 1

The sole purpose of a business is to sell products and services to earn profits. Advertising helps a business to earn profits by enabling more people to know about the products and services and thus resulting in more sales. The consumers on the other hand will never get to know about the products and services if they are not advertised. Advertisements help the consumers to make decisions regarding which product and service to buy. With the help of advertisements a consumer gets the best possible options

Today, the advertising industry has become a huge industry because of large number of products and services being offered As a result the competition has also increased requiring every businessman to promote his products and services being offered. As a result, the competition has also increased, requiring every businessman to promote his products and services in the best possible manner. This has further led to development of new advertising techniques and an increase In the number of advertising agencies which are available today. The aim of every promotional campaign is to enable the products to reach the right people by increasing the awareness about the product, it's benefits and draw backs.

Advantages of Advertising

1) 3 R's of Advertising

Advertising is a very effective method of presenting information about the products both inside and outside the country.

Retaining loyal Customers

Reducing lost customers

Recruiting New customers

Reduction in Per unit cost

It helps a businessman to boost up sale of his products. He inspired by a rise in demand, produces the goods on a large scale which in turn reduces the cost of each unit. So reduction in cost and increase in profit is also one of advantages

Increase in Employment

One of advertising benefits is that it increases the sale of goods, which enables the advertisers to produce goods on a large scale. Advertising thus provides employment to huge number of people and raise their standard of living

Elimination of Middlemen

Advertising get up attention and provides information about the effectiveness of good remote and broad in country. The retailers directly order for manufactured goods. Advertising thus eliminates middlemen

Acceptance of new products

Advertising bring in new goods to consumers, impresses upon them the new uses of products which saves their income

Virtues of Thrift

Advertising teaches the people about virtue of thrift and their responsibility to their dependent. The life insurance, fire insurance, marine insurance has saved families from extreme poverty

Institutional Image

It helps in construction of a favourable picture of a company. A company, for instance, in an hour of long television program stressess upon reputation, the policies and activities carried on by company. The main purpose behind this program to put full force of reputation of firm behind product in mind of people

Sale of entire line of product

Advertising helps in promoting whole family of products manufactured by firm. Such as, a company manufacturing cloth may produce towels, blankets, ready made shirts, paints and other garments. A single advertisement will promote sale of entire line of product, thus greatly reducing cost per unit

Increasing Sale of Entire Industry

If an industry is facing stiff competition in market due to availability of new substitutes, then through proper advertising company may easily enhance his products from its competitors

Advantage of consumers

The consumers remain better informed about the competing products And their qualities through information supplied by advertising

Encourage Competition

Advertising encourages competition among competing firms. It leads to production of better quality of goods. The consumers are able to get better quality products at competitive prices

Social Benefits

Advantages of advertising are

Maintains a contact between producer and consumer

Has an educational value

The advertisers bear cost of newspapers, magazines and provide reading material to consumers at a cheaper price .