In the contemporary era, advertising plays a crucial role in every business. It has become an indispensable part of any business. Advertising is like an investment which you make in business to reap lucrative returns in the future.
In the beginning of the 20th century, advertisement was given negligible importance . But with the passage of time, the perception of businessmen changed and now advertising has occupied a significant position in every business. Before going further, let us discuss what advertising is and why is it given so much importance.
Advertising in layman's terms is communicating your product or service to the potential customers. Potential customer here means a person who has sufficient resources and willingness to buy a product. For instance, potential customers for a branded lipstick would be the young women of upper class or the rich middle class. For the purpose of communicating the product, various advertising channels and techniques can be used. Some of them are social media, word of mouth, television, newspapers, digital marketing etc. The channel and technique of advertising to be used depends on the type of business. To exemplify, a small scale business which operates only locally will not use television for advertising. The reason behind this is that first of all advertising through television is very expensive. In addition, its potential customers are only the people living nearby. Hence, word of mouth, brochures and pamphlets would be a more practical and feasible option for such a business which operates on a small scale with a low investment.
There are still some businessmen who consider advertisement as a loss of money and they don't feel the need to do it. But the truth is that advertising is not a loss, in fact, it is a sort of investment. Businessmen who do not advertise their product or service have limited scope of expansion and growth. They remain confined to a certain number of customers and they never try to explore the market beyond that.
Another reason behind the ever increasing role of advertising in business is that the modern business environment is very competitive. Through advertising, you can convey to your potential customers about the USP of your product or service. USP refers to what different thing your product or service offers as compared to other similar products.You can read more about what USP in a business means on https://whatis.techtarget.com/definition/unique-selling-point-USP . Nowadays, competition is so much prevalent in the market that without advertising, you will find it almost impossible to survive in the market. Without advertising a business cannot capture a desirable share in the market even if it is offering the best product in the market. Until you don't advertise, people are not aware of your product or service. Advertising assists the business in getting an edge over its competitors and helps it to flourish and prosper.
Advertising is important from the customer's point of view as well. Through advertising, customer becomes aware of the latest offerings in the market and he makes his buying decision accordingly. If there would be no advertising, customer will have a limited knowledge about the latest products and services and he would find it difficult to make a decision. Customer is considered the 'King' in the present business world,hence,all the latest information must be available at his disposal and that is only possible through advertising.
For a new business or company, the role of advertising further increases. It sets the foundation for the business by facilitating the penetration of the business in the market. Advertising creates the required hype about the new product and customers get curious to know more about the product and its features. When the product finally arrives in the market, customers tend to buy that product as they are strongly influenced by its promotion. Such type of advertising strategies are used by VIVO and XIAOMI. Even before the product enters the market, they create so much hype about the product that customers are inclined to buy their mobiles.
In the beginning of the 20th century, advertisement was given negligible importance . But with the passage of time, the perception of businessmen changed and now advertising has occupied a significant position in every business. Before going further, let us discuss what advertising is and why is it given so much importance.
Advertising in layman's terms is communicating your product or service to the potential customers. Potential customer here means a person who has sufficient resources and willingness to buy a product. For instance, potential customers for a branded lipstick would be the young women of upper class or the rich middle class. For the purpose of communicating the product, various advertising channels and techniques can be used. Some of them are social media, word of mouth, television, newspapers, digital marketing etc. The channel and technique of advertising to be used depends on the type of business. To exemplify, a small scale business which operates only locally will not use television for advertising. The reason behind this is that first of all advertising through television is very expensive. In addition, its potential customers are only the people living nearby. Hence, word of mouth, brochures and pamphlets would be a more practical and feasible option for such a business which operates on a small scale with a low investment.
There are still some businessmen who consider advertisement as a loss of money and they don't feel the need to do it. But the truth is that advertising is not a loss, in fact, it is a sort of investment. Businessmen who do not advertise their product or service have limited scope of expansion and growth. They remain confined to a certain number of customers and they never try to explore the market beyond that.
Another reason behind the ever increasing role of advertising in business is that the modern business environment is very competitive. Through advertising, you can convey to your potential customers about the USP of your product or service. USP refers to what different thing your product or service offers as compared to other similar products.You can read more about what USP in a business means on https://whatis.techtarget.com/definition/unique-selling-point-USP . Nowadays, competition is so much prevalent in the market that without advertising, you will find it almost impossible to survive in the market. Without advertising a business cannot capture a desirable share in the market even if it is offering the best product in the market. Until you don't advertise, people are not aware of your product or service. Advertising assists the business in getting an edge over its competitors and helps it to flourish and prosper.
Advertising is important from the customer's point of view as well. Through advertising, customer becomes aware of the latest offerings in the market and he makes his buying decision accordingly. If there would be no advertising, customer will have a limited knowledge about the latest products and services and he would find it difficult to make a decision. Customer is considered the 'King' in the present business world,hence,all the latest information must be available at his disposal and that is only possible through advertising.
For a new business or company, the role of advertising further increases. It sets the foundation for the business by facilitating the penetration of the business in the market. Advertising creates the required hype about the new product and customers get curious to know more about the product and its features. When the product finally arrives in the market, customers tend to buy that product as they are strongly influenced by its promotion. Such type of advertising strategies are used by VIVO and XIAOMI. Even before the product enters the market, they create so much hype about the product that customers are inclined to buy their mobiles.
