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Role Of Advertising To Manufacturers Consumers Salesmen And Society
Role Of Advertising To Manufacturers Consumers Salesmen And Society
Role Of Advertising To Manufacturers Consumers Salesmen And Society
April 8, 2019
Benetits to Manufacturers
(1) Increase in Sales: Advertising helps in sale of new products and expansion of
market for existing products. Through advertising, manufacturers can give knowledge
about new products, modification/improvements made in existing products, their uses,
superiority over competitors’ products, place of availability of products, price, etc.
Advertising helps the manufacturer in searching new customers and new sales-territories.
(3) Mass Communication: Advertising is the most cost effective method for
communicating with large audience. Advertising is a tool of mass communication. It is
very suitable for communicating ad-message to large audience. Although its absolute cost
is high, but as it contacts a large number of audience, so its per audience cost is low. Thus,
it helps the manufacturers in communicating with masses
(4) Lowers Production Cost: Advertising helps the manufacturer in increasing the
sale. The manufacturers can produce goods on a large scale. This helps to achieve
economies of large scale production, viz. procurement of cheaper and quality raw-
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material, arranging suitable machinery and technology at lower rates. Moreover large
scale production ensures reduction in per unit cost because of better utilisation of fixed
expenses. All this helps the manufacturer in reduction of per unit cost of production.
Benefits To Consumers
(1) Products Available at Low Prices: Advertising makes mass production possible,
which reduces per unit production cost. Advertising also makes mass communication
possible which reduces per unit distribution cost. So advertising ensures lower cost of
products, hen low prices hence low price.
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marketing. Now consumers can buy various products directly from manufacturer which
helps in elimination of middlemen’s margin. For example: e-shopping, sale through mail
has become possible only because of advertising.
(3) Reminds Consumers of Essential Things: Repeated ads remind the consumer
for essential things e.g. ad of toothpaste reminds the consumer to clean the teeth twice a
day to prevent tooth decay. Similarly repeated ad of pulse polio reminds the audience to
take their kids for pulse-polio drops.
(2) No Need of Advertising by Distributors: The wholesalers and retailers need not
spend much on advertising a product which is already well-advertised by manufacturer. It
helps in reduction of selling expenses of distributors.
(3) Increase in Sales and Profits: Advrtising ensures quick turnover of stock, more
sales, less chances of obsolete stock, hence more profits for retailers, wholesalers and
distributors.
(4) Ensures Regular Sales: Well-advertised products can be sold throughout the year.
In off season periods, various sales promotion schemes are communicated to target
audience through advertising. So advertising helps to reduce seasonal
slumps/fluctuations and maintains steady demand throughout the year. Regular sales
ensure regular means of livelihood to distributors, salesmen.
(5) Increase in Morale of Sales Force: Sales force feel confident in selling well-
advertised products. They get easy entry while making sales calls, can easily achieve sales-
targets, sales-quotas for well-advertised products. It ensures higher commission and job-
satisfaction to sales force.
(7) Selling New Products: Advertising creates primary and selective demand for a new
product. Without advertising, it is very difficult for the distributors and salesmen to sell a
new product.
Benefits to Society
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(1) Increase in Standard of Living: Standard of living means consumption pattern of
masses living in an economy. Advertising provides better quality products at cheaper
rates; it introduces new products, it creates demand for convenient and luxury goods. All
this promotes standard of living.
(3) Media Availability at Low Rates: Media earns a large revenue from advertising.
The present growth in media has become possible only because of advertising revenue.
Now a newspaper is sold for rupee one, it is possible only because newspaper is covering
its cost from ad-revenue. Otherwise cost of newspaper would be very high and a common
man would not be able to afford newspaper.
(5) Increase in Exports: Advertising helps the manufacturer to sell their products in
the international markets. When goods are sold in international markets, exports increase
resulting in more inflow of foreign exchange in the country.
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