Role (Functions) of advertisement:
1. Creates demand:
- Advertisement provides information about products to the consumers in the market.
- The information might be in the form of utility of the product, its features, how is it better than others, etc.
- All such information creates a sense of buying and using the product in the minds of people. This is how the demand of the product is created.
- Initially, people might buy the product on trial basis. Once they get used to it, they keep on demanding the product.
2. Benefit of large scale production:
- Advertisement can be targeted to a very large number of consumers at one go. This increases the demand many-folds.
- In order to meet the huge demand, the company has to undergo large-scale production. Large scale production reduces production cost and increases profitability.
- As a result, the company earns more return as compared to the advertisement cost.
3. Product awareness:
- Advertisement helps in providing information about the product to the consumer. The information can be utility of the product, features, how to use the product, etc.
- When a product has more than one usage then through advertisement such information is passed on to the potential consumers.
- Producer also creates a trust in consumer’s mind regarding the quality of the product.
- By sharing the trust and satisfaction of current consumers, new consumers can be convinced to purchase the product.
- Thus, there are several ways in which advertisement creates awareness about the product.
4. Helpful in employment generation:
- Due to advertisement, demand for a product or service increases. This leads to rise in employment in several sectors such as production, logistics, service and repair, etc.
- Also, severalemployment opportunities are created in the field of advertisement itself. This includes employment as copy writers, advertising distributors, film makers, artists, etc.
5. Betterment of standard of living: Advertisement creates awareness about new and innovative products in the market. Over and above fulfilling basic needs, consumers buy the products for living a comfortable life, a life where in their work can be done faster, and improve their standard of living.
6. Maintenance of quantum of sales:
- When a product is been advertised and repeated over and over several times, it creates a lasting impression and remembrance on the minds of consumers. This is the reason why at the time of purchase, consumer shows a prompt preference for these products.
- Such a policy of advertisement keeps sale at consistent level.
- In fact, products that are continuously advertised generate better sale than competitor’s products.
