Impact of advertisement on Business Development
What is the impact of advertisement?The advertising is a powerful tool for promotion and development of any business organization. Advertisement is considered as a profitable investment to achieve the goal of a business organization in terms of maximizing profit out of optimum utilization of its limited resources.
The specific impact of advertisement or power of advertisement on business development are described below:
- New products are introduced- New products can be introduced through advertisement.
- Sales are increased- Advertising creates the demand and increases the sale. As the sale increases, the production also increases. As a result, the profit also increases.
- Employment is created- Advertisement increases sales of goods and services. Increased sales of goods and services leads to increased production. This is followed by establishing new factories and generating new employment.
- Goodwill is established- Advertisement establishes acquaintance reputation and goodwill about a particular firm
- Competition is promoted- Advertising promotes competitions among the producers. This results in control the quality and price.
- Costs are reduced- Advertisement helps to increase sales and production. This results in decrease of production costs.
- Human behavior is changed- Advertising motivates people to change the habits, attitudes and likings of the public.
- Profit is increased- Advertisement is a profitable investment. It helps to increase sales and total profit of the producers.
- Consumers are in touch with current information-Advertisement keeps the consumers updated with the information about the products, qualities and prices.
- People are educated- Advertisement promotes the knowledge and awareness of the public through useful information such as family planning, children education, hygiene and sanitation, etc.
The impact or the power of advertising appears to be great! But there is still a gray side of it? It is still a question around us as to whether the endless advertising in different media/advertising channels has made life difficult for the mankind? Nevertheless, the power of advertising has been playing a significant role in our everyday life and influencing individual, social and nation building activities.