Explain the usefulness of advertising from the customer’s point of view.
Advertising has got many advantages and because of such advantages; it, some extent, proves to be useful (for customers). The merits of advertising are stated below:
Advertising leads to reduction in the cost of goods: Demand for a particular product increases when the consumers through advertisements, come to know about the product. With the increase in demand, production also increases. This production increase results in economies of scale. Economies of scale have got certain benefits that offset the advertising cost. Businessmen prefer to go for advertising rather than personal selling because advertising costs are much less. Firms have to adopt more expensive methods, if advertising is not used as a medium to sell goods.
Advertising and social values: Some ads are prepared in such a way that they give a message concerning social values. There are ads that inform the public about the product with the help of social values. For example–ads that tell people to be kind to animals, a dettol ad, respect for elders LIC ad, education of backward class Idea ad etc. People still find some ads not suited to be viewed by children and adults. It Is a myth that businessmen misuse advertising occasionally. One should not slave ads for its misuse. Statutory regulations should be there in order to control the misuse of advertisement.
Advertising encourages autonomy of mass media: A huge amount is earned by mass media like magazines, newspapers etc, with the help of advertisements. Newspapers and magazines are generally sold at a much lower price because media gets a fair amount from the businessmen. If ads would have not been there, public would not have enjoyed reading at a lower price. Earnings through ads make the media financially self-supporting. With the help of this financial stability, all matters of public interest can be published freely and frankly by the media. It helps in increasing the freedom of prices.
Advertising provides useful information: Advertisement prove to be very useful because one can gain proper and useful information relating to products, prices, quality servicing etc. Through advertising, people living in remote areas, in far-off places or outside the country can also be informed about the new products. Its informative role proves to be very beneficial to the consumers.
Advertising generates employment: It is of a great advantage to the people as it helps in generating employment. A large number of artists, designers, models, technicians etc. work in advertising agencies and mass media and earn their livelihood. One can fetch a good amount of money by working in advertising agencies and mass media.