According to the career diplomat, William Stanton “Advertising consists of all activities involved in presenting to a group a non-personal, oral or visual, openly sponsored identified message regarding a product, service or idea. The message, called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.”
Advantage of Advertising
Reduction in Per Unit Cost
Advertising helps to improve sales of a company by increasing the demand of their products. When demand increases, companies can produce goods in large quantities, resulting in the reduction of per unit cost.
Elimination of Middleman
Companies need not appoint any salesman, as advertising helps a company to popularize its products among the customers. Advertising provides customers every detail about the product and customers will have no hesitation in directly purchasing the product from manufacturers.
Sales of Entire Line of Product
Companies need not advertise separately for each product in the line of production. They can promote the whole line of product with a single advertisement.
Acceptance of New Products
Advertising helps a company to advertise a new product to its customers. These advertisements provide all required information about the new product and customers will identify the product when they see it for the first time in the market.
Increasing the Sale of Entire Industry
Advertising helps an industry to stand tall in front of its competitors. When an industry faces stiff completion because of substitute products, advertisements help the industry to enhance sales of their products.
Advertisement leads to competition between companies and they are forced to improve the quality of their products. Customers are majorly benefitted by advertisements as they get to choose from quality products at competitive prices.
Advertising as we all increases the demand of a product, which in turn results in mass production. Mass production leads to more employment opportunities and this leads to improvement in the standard of living.
Advertisement has many social benefits, like it improves the relationship between producers and customers, improves the educational value as advertisers help provide newspapers and magazines at a cheaper price.
3Rs of Advertising
Advertising helps a company to reduce lost customers, retain loyal customers and recruit new customers.
Changes in Living Habits
Advertising has changed lifestyle of people by introducing them to entertainment, packed breads, hair dressing shops, beauty clinics, new communication devices, new clothes and frozen foods.