List out the purposes for which advertising is used by the business firms.
Advertising is defined as any paid form of non-personal presentation of ideas, goods or services by an identified sponsor. Various purposes for which advertising is used by the firm are given below:
Introducing new products: When one introduces a new product in the market, it can be useful to use advertising as one of the means of launching a new product. With the help of advertising, all kinds of information regarding the product can be given. Consumers can know about the introduction of the product, its benefits, where it may be available, how to gain more information about the product.
Inducing potential consumers to buy: If one wants to increase the sale of a product, he should go for advertising. Advertisement should reveal ‘the usefulness of the product, its quality and price in order to convince the potential buyers to buy the product. Traders keep a larger stock as they expect that sales would increase due to advertising.
To create brand image: Brand’s image can be cultivated in minds of the customers, enough advertisement. When firms advertise their product, customer’s loyalty is created. If customers get liking for a particular brand, they would not shift to any other brand easily. Advertising helps in creating brand’s image.
Reminding users: Various firms introduce their products on a regular basis. With the coming of new products, one may even forget the old brands.To eradicate this issue, manufacturers regularly advertise their products in order to maintain the interest of the buyers. The work of advertising is to remind the old customers.
Dealer support: Some advertisements are shown with a view to give support to the dealers and distributors. Many advertisements that appear in the newspapers, contain the list of dealers and distributors along with the particulars of the product.
To highlight brand character: Consumers have the feeling for certain products that they should possess a particular characteristic. A buyer makes a decision of choosing that brand out of so Many, which possess that particular characteristic. If the product has got that feature, the work of advertising is to give stress to it and demonstrate its advantages. If the product is meant for providing benefit to the customers, advertising should be done to emphasis it.
Increasing the retail sale: Another purpose of advertising is to increase the retail sale on certain occasions with the help of special or, off season festival discounts, gift schemes, clearance sales etc. An important role of drawing the attention of customers towards the special offers is played by such advertisements.