1st Part: Importance of Advertising
The various functions of advertising can thus be listed below:
Stimulates Demand: By informing consumers about the availability of a product in the market, advertising stimulates latent needs and reinforces the around needs. Everyone agrees that advertising influences overall consumption to some extent.
Strengthens other components of the promotion mix: Advertising helps salespeople by preselling the product and easing their workload. It reaches a sizable audience and influences them in a positive way. Ads carry sales promotional messages and often produce sales responses.
Create Brand Preferences: Brand trial or purchase is frequently prompted by persuasive and consistent advertising. When a product provides the stated quality, service, and value, it creates happy customers who play a crucial role in promoting the brand. Customers who are pleased also acquire a preference for a brand, which is reinforced by constant advertising. Products with a strong brand franchise offer some protection against competition. Resellers develop confidence and don does not hesitate in stocking strong brands. Customers that are loyal to the brand are a valuable asset for the business and are less susceptible to competition actions.
Reduce costs: Advertising may be helpful in reducing the costs associated with manufacturing and sales. Increasing unit sales decrease unit costs. Because there would be fewer unnecessary calls and fewer demands on salespeople, selling costs might also drop.
Lower Prices: In any market-based and competitive economy, when the unit cost of a product goes down, there are internal and external pressures that compel companies to lower prices to the advantage of consumers. This often leads to deeper market penetration.
Conflicting Weapon: Advertising may show to be a very effective weapon to thwart competitive advances, both on its own and when combined with other components of the marketing mix. Brand personality and image are established outcomes of advertising. It aids in differentiating a company’s offer so that the good may be viewed as having special value and a distinct identity of its own.
“In this context, sales promotion refers to non-repeating sales activities that are carried out outside of the normal course of business. These include exhibits, shows and expositions, demonstrations, and other non-recurrent sales efforts that support both personal selling and advertising, coordinate them, and help to make them effective.”
In a comprehensive way, Sales Promotion is defined as:
“In addition to advertising, personal selling, publicity, and direct marketing, sales promotion also includes incentive offers and interest-creating activities. The purpose of sales promotion is to stimulate, motivate and influence the purchase and other desired behavioral responses for the firm’s customers.”