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19 Importance of Advertising to Producers (Explained)

Last Modified: 10 March, 2020 Leave a Comment

Producers make available the goods to market to earn profit and to satisfy consumers’ needs. They take the help of advertising to promote and popularise their products.

importance of advertising to producers
Benefits of advertising to producers

The modern world depends on advertising. Without it, producers and distributors would be unable to sell products and services.

Importance of Advertising to Producers

Manufacturers spend a lot of money on advertising because it pays the following benefits to them:

1. Increase in Demand

Advertising awakens interests, stimulates emotions and creates the desire to buy the product.

It converts desires into effective demand.

Advertising helps to create a steady demand which pays to manufactures.

2. Large Scale Production

Advertising increases and stabilizes the sales turnover. It helps to repeal sales. It creates customers and loyal clients.

The increased demand necessitates producing on a large scale.

Advertising is the cause and outcome of a huge production.

It also creates economies of large scale production.

Related: 19 Different Types of Advertising in Marketing (With Examples).

3. Cuts Costs

Advertising helps in cutting down the production and selling costs.

Increasing unit sales decrease unit costs.

It also cuts production costs by stabilizing demand, fewer wasted calls, less strain on salespeople, and large quantities of goods produced.

4. Good Selling Tool

Advertising is a good selling tool for big businessmen. It puts less burden on other selling methods.

The relative efficiency of advertising as a selling tool is arguable on the national scene and within specific industries.

But advertising to the millions is unquestionably more efficient fewer expensive per dollar of sales produced than the old methods which saw individuals salesmen working over individual customers.

5. Explores New Markets

Advertising maintains the existing markets. But it also expands and explores new markets by better informing and serving the customers.

A regular, effective and constantly changing message of advertising keeps the customers in touch with the company.

In fact, the proverb ‘out of sight, out of mind‘ applies aptly to the advertising tool.

It creates markets by its frills and cuteness.

6. Facilitates Innovation

Advertising promotes a new product. In a way, it reduces the risk of innovation.

The cost of innovation can be re-covered by the sales which advertising may generate.

It encourages producers to undertake research and development.

It helps to launch new brands. To some extent, it provides a guarantee of the success of new products.

7. New industries and New Jobs

Due to advertising new and improved products and services constantly appear, enrich our lives, change life cycles, create new industries and new jobs.

And all these products and services further need advertising.

Related: 18 Aims and Objectives of Advertising (Explained).

8. Lowers Prices

Advertising reduces product prices by keeping down various costs to the advantage of consumers. It controls the price line.

This often improves the competitive power of the firm and leads to deeper market penetration.

9. More Profits

Advertising increases profits by increasing sales.

importance of advertising to producers
importance of advertising to producers

Through advertising, many benefits like quick turnover, repeat sales, reduced costs, multiplied sales turnover, less stock of products, etc. appear. All this results in more profits.

10. Control on Trade Cycles

Advertising can help to stimulate business recovery in severe recessions.

It stimulates latent needs and reinforces the aroused wants in the depression period.

It can have some effect on aggregate consumption. In strengthens selling activities in low business times.

Advertising does show some tendency to control the gyrations of the business cycle.

It has the most potential for stimulating business recovery.

11. Competitive and Promotional Weapon

Advertising is a powerful weapon to counter competitive moves. It creates a brand image.

It helps differentiate companies’ products with unique value and definite identity.

Great advertising is the ability to capture the imaginations of the public. Advertising is a promotional weapon. Greatness means commanding attention and persuading people to buy something.

No frills, no cuteness, great advertising has to sell the public and keep them sold.

12. Builds Brand Image

Manufactures use advertising to build a brand image.

Much modern advertising is called image production.

It also perpetuates corporate image. Every advertisement must be considered as a contribution to the complex symbol which is the brand image.

The manufacturers ho dedicate their advertising to building the most favorable image, the most Sharpley defined personalty for their brands are the ones who will get the largest share of these markets at the highest profit in the long run.

Related: 11 Limitations or Disadvantages of Branding.

13. Part of Total Marketing

Advertsing is an inseparable part of the total marketing function.

Essentially, the marketing function is one of identifying consumers’ wants. moving to fill those wants by developing products with appropriate qualities….packaging them for attractiveness and convenience…pricing them right…. and ultimately getting them into good distribution.

Advertising’s role in this function is to convey the news and the benefits of the products to consumers…in the simplest phrase of all, this means selling the product.

14. Economy in Distribution

Advertising in the distribution has the same place as the warehousing has in production.

Due to advertising, it becomes easy t get dealers, agents, and salesmen to distribute goods in the market.

Advertising presents more economical channels of distribution of goods in the trade market.

15. Feedback from Consumers

Advertising also serves as a device of feedback for producers.

It remits various types of information from consumers to producers with regard to their problems.

It is a source of complaints, suggestions, ideas, reactions. opinions or metal projections from consumers.

16. Other Benefits

  1. It increases business activities.
  2. It increases the goodwill of the firm.
  3. It increases interest among dealers in manufacturers’ goods.
  4. It makes it possible the use modern technology in the productional process.

Thus, now you know the importance of advertising to producers.

Related:

  • 15 Importance of Sales Promotion to Producers (Explained)
  • Top 13 Role and Importance of Retailing (With Examples)
  • 18 Requirements of Good Sales Compensation Plan (Explained)
  • 21 Key Benefits and Importance of Sales Forecasting (Explained)
  • 16 Best Ways to Find Potential Customers for Your Business (Complete List)

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