Purpose and objective of advertising, advantages and disadvantages - Basics of advertising
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The document outlines the purpose and objectives of advertising, as well as its advantages and disadvantages. The key purposes of advertising include preparing the ground for new products, creating demand, informing customers of changes, and countering competition. Some main advantages are increased sales, steady demand, lower costs, and creation of goodwill for manufacturers, consumers, sales forces, and society. However, advertising can also be costly, promote misleading claims, encourage monopoly and high prices, and create unfulfilled desires.
Purpose and objective of advertising, advantages and disadvantages - Basics of advertising
- 2. Objective of Advertising Preparing Ground for New Product Creation of Demand Facing the Competition Creating or Enhancing Goodwill Informing the Changes to the Customers Neutralizing Competitor's Advertising Barring New Entrants 2
- 3. Purpose of Advertisement Communicates information Creates ground for personal selling Educates people Creates and extends demand Creates image for the product or service Builds goodwill Obtain dealer support Counters competition 3
- 4. Advantages of Advertising Advertising and Manufacturers i. Increased Sales ii. Steady Demand iii. Quick Turnover and Smaller Inventories iv. Lower Costs v. Creation of Goodwill vi. Controls Product Prices vii. Greater Dealer Interest 4
- 5. Advertising and Sales Force i. Advertising and Sales Force ii. It creates a colorful background 5
- 6. Advertising and Consumers i. A Guiding Force in Making Purchase Decisions ii. Improvement in Quality iii. Elimination of Unnecessary Intermediaries iv. Education of consumers v. Better quality goods at cheaper prices vi. Consumers’ surplus 6
- 7. Advertising and Society i. Existence of the press ii. Change in Motivation iii. Better standard of living iv. Encouragement to research v. Gainful employment opportunities vi. Encouragement of Artists vii. Glimpse of national life 7
- 8. Disadvantages Costly Function Misleading claims Encourage monopoly High prices Disconnection of business Buying problems Promotion of social evil Creating unrequited desire Misuse of advertising Influences purchasing power 8