Question

“Advertising is helpful to manufacturers and dealers”. How?

Answer 1

1. Advertising leads to an increase in sales and thereby in profits.
2. It facilitates the introduction of new products by bringing about their acceptance and quick sale.
3. It establishes direct contact between manufacturers and customers.
4. Advertising creates goodwill by making the name of a manufacturer and their product famous and known to the public.
5. It maintains the demand even during the off-season by offering discounts and innovation, e.g., cold coffee.
6. Advertising increases the demand and thus facilitates the large-scale production of goods and services. Hence, the per-unit cost of production falls.