Economics aspect of Advertisement

Advertising helps to develop in economy of a country.
Let’s look the economic aspect of ads:

1) To create the market demand:
Ads help to create the demand for the products which helps to increase sale as well as profit.

2) Minimization of production cost:
Advertising increase the demand of products as a result company needs to produce more products which help to reduce the unit cost.

3) To create the firm image :
Advertising not only products the product image but also it creates the firm’s image ion the target customers.

4) Balanced competition:
Advertising provides the information about the products. As a result a customer can know the information of related products & buy the more satisfactory products.

5) Increase of national & individual income:
Advertising helps to increase the volume of sale. Thus the GNP also increases of the country. For using a particular product we need to earn more which helps to increase the individual income as well as national income.

6) Consistency of demand & supply & price stabilization:
Advertising can create the demand of the product & with the consistency of demand company supply products.

7) Expansion of foreign trade:
By advertising the company can attack the foreigncustomers which helps to create foreign market & enhancing the expert business.

8) Others:
Advertising also helps the middleman, the sales, attracting investors, to increase the tendency of consumption etc.