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MARKETING MANAGEMENT - PROMOTION DECISION

IMPORTANCE OF ADVERTISING - Advertising Decision

   Posted On :  19.06.2018 06:04 am

It is just not enough to manufacture a product. People must be informed of its existence and should be given good reasons to buy it.

IMPORTANCE OF ADVERTISING
 
It is just not enough to manufacture a product. People must be informed of its existence and should be given good reasons to buy it. This is a job which is sought to be done by advertising. Without advertising, people would not be aware of the attributes of the product nor of its price. Let us now discuss the role and importance of advertising.
 

(i) Way of Informing

 
 
Advertising is a way of communicating information to the consumer –information which enables him to compare and choose from the products and services available. Advertising enables consumers to exercise their right of free choice 1 “ Encyclopedia Bitannica” such diverse media as handbills, newspapers, magazines, billboards, letters, radio and television broadcasts and motion pictures.
 

(ii) Manufacturer’s concerns

 
 
Advertising is the most economical means by which a manufacturer or an institution can communicate to an audience either to sell a product or to promote a cause of social welfare, such as, civic drive, or an immunization programme. This includes the process of mass communication which is different from ordinary communication. Here a macro level mass communication is between manufacturer and his mass audience. This is also connected through new sources. Mass audience gives various reactions as responses. Here audience is interconnected as a group within groups. The 5 elements of mass communication are shown in the above chart.



In India, an ordinary grocery store keeps as many as 20 brands of toilet soaps, 10 brands of toothpastes, 9 brands of cooking oils and over100 varieties of other packaged goods. In such a situation, advertising helps consumers to make an intelligent and well – considered purchase. -- The Economic Times, December 21, 1989.
 

(iii)Fundamental Right of Freedom of Speech

 
 
Advertising being a necessary means of communication is an inseparable part of free speech. Any restriction on the right to recommend legitimate services or ideas in public will diminish the fundamental right of freedom of speech.
 

(iv) Improving productivity

 
 
Advertising can help in improving the economies of developed and developing countries. There is ample evidence to support this view. Advertising stimulates production and consequently generates more employment. It can help stabilize prices and leads to wider distribution and greater availability of goods an services.




(v) Economic Growth of Country

 
 
Advertising is an essential and integral part of the marketing system. It is sometimes maintained that the marketing system is nothing but requirement of a country’s social and economic growth. Advertising stimulates sales and compels the firm to improve its productivity and contributes substantially to the growth of the economy. Thus marketing and advertising are key tools used to aid a country’s growth.
 
Even though advertising costs a lot of money, and the costs are increasing day by day, a skillfully used advertising campaign can be the cheapest means of reaching the market and commutating with the consumers effectively. Advertising is wasteful if it fails to produce sales.
 
Advertisement leads to an increase in sales and market share. Pepsi came to India with a zero market share. By December, 1995, it had captured 40 per cent of Indian market 1. Promise, a toothpaste manufactured by a small –scale unit, was able to snatch a 15 per cent share of the market by strong customer –oriented advertisements
 
People feel safe in purchasing products they know of. Advertising makes them aware of the products and their attributes. In promoting a product or a brand, the manufacturer/ advertiser stakes his reputation. No manufacturer/ Advertiser would be foolish enough to risk his reputation by making misleading claims in his advertisements. Hence advertised goods are trusted the world over and India is no exception. 

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