Advertising and Salesmanship: Objectives of Advertising, Introduction of New Product and Increase in Sale (For CBSE, ICSE, IAS, NET, NRA 2022)

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Objectives of Advertising

The main objective of advertising is to help a business firm to promote its products and increase the sales. But there are some other goals also which a firm can achieve with the help of advertising. The objectives to be achieved through advertising are as follows:

Introduction of New Product

Business firms keep on introducing new products in the market and have to inform the prospective customers about its features, price, usage, availability etc. Advertising not only attracts their attention but also helps them in forming an opinion about the product and making the best purchase decisions.

Increase in Sale

Advertising helps in increasing the sale of firm՚s products. It also helps in turning non-users of products to users of products and also in attracting the consumers of competitor՚s products. Business firms make use of advertising to inform the consumers about the advantages and superiority of their product.

Maintaining Existing Buyers

Now-a-days new products keep on entering in the market at a fast pace and consumers tend to switch over to the new products. Advertising is used to remind the consumers about how good their products or services are and that they are still in the market as old and reliable ones. The idea is to prevent decline in the sale of their product in the market.

Create and Enhance Goodwill of the Firm

Advertising helps in building reputation of the business house. Through advertising, the firms can communicate their achievements to the consumers and clarify any misconceptions or doubts in the mind of the public about themselves or their products, if any. This helps in creating a good image of their firm in the minds of consumers, workers, investors, government and so on.

Dealer Support

Another objective of advertisement is to provide the necessary support to firm՚s dealers and distributors. Hence some advertisements, besides the information about the product characteristics, price etc. , include a list of dealers and distributors.

Create and Enhance Brand Image

Advertising is also used for creating a brand image which helps in building customers՚ loyalty. When customers develop brand loyalty, they do not shift to other brands easily. Brand image gets enhanced with repeated advertisements.

Helps in Personal Selling

Advertising facilitates the process of personal selling. The salesperson job is made easier if the customer has familiarity with the product. This is achieved through advertising.

Advantages of Advertising

In today՚s competitive world there are innumerable products competing with each other. It is necessary that information regarding features, prices and availability of the product is frequently communicated to the consumers so as to ensure a reasonable market share for the manufacturer. Not only that, it also helps the consumers to make a right choice. So, advertising today benefits not only the business houses who manufacture the products but also the consumers and society.

Advantages of Advertising

Benefits to Manufacturers

Advertising helps the manufacturers in introducing new products, maintaining customers of existing products and in increasing their sales by attracting new customers. It also helps the business houses in creating and enhancing their goodwill. Advertising is an important tool for fighting competition in the market effectively by giving the customers a comparative picture of its products vis-a-vis the competitors՚ products.

Benefits to Consumers

Advertising helps the consumers to gain useful information about the products, prices quality, terms of sale, after sales services, etc. Besides providing such information advertising also guides the customers about the right use of the product. This helps them to make a comparative analysis and make their choice. Not only that, advertising is the main source of information for those who live in remote areas and cannot be easily approached by salespersons.

Benefit to Society

The enhanced competition resulting from advertising motivate the producers to make improvements in their existing products and find out better alternatives through Research and Development (R&D) activity. So, it helps in providing more convenience, comfort, better lifestyle to the people. Advertising also works as a guide and teacher for people who do not know about many products and their multiple uses, if any.

Limitations of Advertising

Many people consider advertising to be a wasteful activity and something harmful for the customers and the society in many ways. Their arguments against advertisement are as follows:

Limitations of Advertising

Advertising Multiplies Wants

People tend to desire and buy products as they see in advertisement even if they do not actually need or afford them. This multiplication of wants may put them under financial and psychological pressure.

Advertising Adds to the Cost and Price of Product

Money spent on advertising eventually results in increased cost of the product, which is passed on to the consumers through increased prices.

Creation of Monopoly

Business firms which can spend heavily on advertising are usually the ones who grab a bigger share of the market. Such firms generally have a monopoly which results in unequal opportunity for small producers to make a place for themselves in the market. They do not get a fair opportunity to compete.

Advertising May Affect the Value-System of Society

Advertising may introduce ideas or concepts alien to our culture. These new values generated or propagated by advertising may affect our social, moral and ethical values adversely. Objectionable appeals like sex, horror etc. are sometimes used in advertisement to attract attention.

Motivation for Wrong or Dangerous Deeds

The way advertisements project people consuming liquor, cigarettes or pan-masala, may feel tempted by the people to try and then get addicted to such products which are not good for health. Similarly, models are shown doing dangerous acts like jumping from the top of a hill which some children may try to copy and may face the accidents.

Advertising May Not Increase Overall Demand

Advertising does not always increase demand. In many cases, a number of firms manufacturing similar products may advertise vigorously. This may not result in an increase in the total demand for the product but simply shift demand from one brand to another.

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