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MCom 2nd Year Advertising Sales Management Study Material Notes

MCom 2nd Year Advertising Sales Management Study Material Notes

OBJECT OF ADVERTISING

The objective of advertising is nothing but to sell something-a product, a service, or an idea. The real objective of advertising is effective communication between producers and consumers. According to Height and Mitchell, “The purpose of advertising is to sell goods, services or ideas to a large group of prospective purchasers”.

According to R. S. Davour, “Advertising aims al commit tree procedure, educating the consumers, supplementing the salesman, er ending the dealer to eliminate the competitor built above all between the producer and the consumer. The following are the objectives of  advertising:

1. Preparation of Ground for Sale of New Product. When a new product is to be introduced in the market, advertising is necessary to inform the potential consumers. In this way, the advertisement may be used for preparing a ground for the sale of a new product!

2. Creation of Demand. Advertisement creates demand for a product vice. Thus, it creates a favorable atmosphere for maintaining or improving sales. (MCom 2nd Year Advertising Sales Management Study Material Notes)

3. Educate the Consumers and the Users. Advertisement educates the consumers and the users about the uses and utility of the product. (MCom 2nd Year Advertising Sales Management Study Material Notes)

4. Building up Brand Image and Brand Loyalty. Advertisement builds-up brand image and brand loyalty and makes is strong enough

not to change a particular brand. (MCom 2nd Year Advertising Sales Management Study Material Notes)

5. Facing the Competition. Advertisement faces the existing competition. The producer informs the consumer about the price, quality, and availability of the product. (MCom 2nd Year Advertising Sales Management Study Material Notes)

6. Informing About the Changes to the Consumers and the Users. The advertisement informs the consumers and users about the changes in quality, packing, design, size, brand, price, weight, packing, etc.

7. Forcing Middlemen to Handle the Products. Advertisement forces the middlemen to handle a particular product or product only.

8. Neutralising Competitors Advertising. Advertising neutralizes competitors’ advertising as their promotional strategy.

9. Enhancing Goodwill of the Firm. The objective of advertising is also to enhance the goodwill and reputation of the firm in the minds of middlemen, consumers, and users. (MCom 2nd Year Advertising Sales Management Study Material Notes)

10. Performing Selling Job. The objective of advertising is also to perform selling functions.

11. Acquaint Buyers with New jobs. The advertisement also acquaints buyers and users with new uses of a product.

12. Assisting Salesman’s Efforts. The objective of advertisement is also to assist the salesman’s efforts in increasing the sales of a product or products. (MCom 2nd Year Advertising Sales Management Study Material Notes)

13. Reduction in Production and Distribution Costs. Advertising also assists a producer in reducing production and distribution costs. (MCom 2nd Year Advertising Sales Management Study Material Notes)

14. Maintenance of Demand. Advertisement not only increases the demand but also maintains the demand for existing products or products. (MCom 2nd Year Advertising Sales Management Study Material Notes)

15. Rationalization for Buying. The advertisement also provides rationalization for buying to the buyers so as to make the right selection of the product needed by them.  (MCom 2nd Year Advertising Sales Management Study Material Notes)

ADVANTAGES OR ECONOMIC UTILITY OF ADVERTISEMENT

The utility of advertisement can broadly be divided into four parts (I) Advantages to Producers; (II) Advantages to Middlemen; (III) Advantages to Consumers; and (IV) Advantages to Society. Details in this regard are as follows: 

(I) Advantages to Producers

Advantages of advertisement to producers may be enumerated as follows:

1. Creation of Demand for New Products. Whenever a producer produces a new product, advertisement helps him in creating demand for his product, because it is the advertisement through which a producer explains the merits of his products to the consumers. It is also an advertisement through which a producer proves the superiority of.” products in comparison to the similar products of competitors. (MCom 2nd Year Advertising Sales Management Study Material Notes)

2. Increase in Demand for Existing Products. Advertisement helps in increasing the demand for existing products because advertisement reminds the consumers of a product again and again.

3. Stability. Advertisement helps in stabilizing the demand for a product in all seasons and at all times. It is only because of advertisements that people like to consume eggs, tea, coffee, etc. in summer also.

4. Increase in Sales. By creating the demand for new products, increasing the demand for existing products, and maintaining the demand for products in all seasons and at all times, advertisement helps in increasing the sales of an enterprise.

5. Increase in Profits. An increase in sales results in an increase in profits also, and thus, the enterprise achieves the object of maximizing profits. (MCom 2nd Year Advertising Sales Management Study Material Notes)

6. Increase in Goodwill. Advertisement helps in increasing the goodwill of an enterprise. It increases the sales and an increase in sales means an increase in the number of customers which is apparently the result of an increase in goodwill.

7. Advantages of Large Scale Operation. As the sales of an enterprise increase with the help of advertisement, the scale of operation of the enterprise increases and the enterprise gets all the advantages of large-scale operation.

8. Helpful in Facing Competition. Advertisement helps the producers in facing the competition successfully. It introduces their products into the market and creates the demand for these products.

9. Helpful in Getting, Efficient, and Experienced Middlemen. As the advertisement creates, maintains, and increases the demand for products and middlemen like to maintain the stock of running items, it helps producers in getting a team of efficient and experienced middlemen. (MCom 2nd Year Advertising Sales Management Study Material Notes)

10. Helpful in Establishing Direct Relations between Manufacturers and Consumers. Manufacturers communicate their message directly to the consumers with the help of advertisements. Thus, advertisement helps in establishing direct relations between manufacturers and consumers. (MCom 2nd Year Advertising Sales Management Study Material Notes)

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