Advertising Benefits and Costs

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PLEKHANOV RUSSIAN ACADEMY OF ECONOMICS

INTERNATIONAL BUSINESS SCHOOL

Essay in Mikroeconomics

Advertising: economic and social costs and benefits

Student: Kostenko D.
Group: 5103

Supervisor: V.V. Gromyko
Dr.Sc.,Professor

Moscow 2013
Advertising: economic and social costs and benefits
Advertising is the most important tool in the marketing of products and services. Companies all over the world universally accepted this fact. The expenses on advertising are considered to be a profitable investment that reaps profits both in the long and short run. Businesses that keep on advertising regardless of rise or fall in the economic times get a competitive advantage over those that cut their ad budgets. There are many benefits of advertising which include:
1.Information to the customer.?Advertisement about new products keeps the customer informed about the new developments in the industry. They help to provide them information regarding the newly launched products.
2.Takes care of customers.?Advertising takes care of customers. It helps in holding on to the loyal customer, decreasing the number of lost customers and enlisting new customers. Thus the overall effect of advertising is increase in the number of customers that will gradually become loyal to the product.??
3.Improves the sale of product.?Advertising facilitates a noticeable increase in the sale of the product. It thus helps reduces per unit cost of the product and help the businesses to earn profits.??
4.Alters the attitudes of people.?An effectual advertisement results in a swift change in the attitudes and habits of the people.??
5.Direct communication.?In earlier days customers believed on the opinions of retailers, when making the purchases of products. With the rapid spread of media and advertising to every nook and corner of the world, people have become aware of the various products that are available in the same category and the freebees and benefits of purchasing them. So the...

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Advertising

Advertise in Newspapers
Reasons why you should use press - it's not just about reach!
Highly Effective
Newspapers drive store visitation, brand recognition and consumer action.
Creative Options
Utilise a variety of colour and shape options, executions, sponsorships and online integration to stand out from your competitors and create compelling consumer offerings.
Engagement
Readers feel better informed after reading their paper and feel it is a good use of their time, not a 'blobbing out' experience such as TV. Newspaper readers are focused on reading the newspaper and are not engaged in other activities at the same time, unlike some other media that become 'wallpaper' or background noise.
Credibility
Research shows that consumers find newspapers to be leading source for trustworthy, believable ads, well ahead of magazines, TV, radio or online ads. Newspapers ads are seen as less intrusive and are not as likely to take away from the enjoyment compared to other media.
Access to Fairfax Newspaper Reader Panels
We can deliver strategic insight for best construction of consumer touch-points and increased connectivity.

Advertise in Magazines
We create content that creates conversations.
Magazines create communities of individuals with shared interests.
Readers develop trusted relationships with magazines through their content and inspire conversations amongst friends, family and social groups.
This environment of trust and high level of engagement provides an incredibly desirable location for savvy advertisers.
Each year, 16,680,639 Fairfax magazines are sold in supermarkets around NZ.*
We reach over 1.9 million people aged 10+.**
Are you advertising with us? Don’t let your brand be the one your target audience isn’t talking about.
*Source: Synovate Aztec TKA Scan Data
**Source: Nielsen CMI Jan-Dec 2012

10 Reasons To Advertise In Magazines

1. Magazines and magazine ads capture focused attention: The focused process of magazine reading...

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Hld the Effectiveness of Advertising and Promotional Tools in Increasing Sales and Attracting Customers to Desi Junction, a Fast Food Restaurant.

The effectiveness of advertising and promotional tools in increasing sales and attracting customers to Desi Junction, a fast food restaurant.
Consulting/Research Project - MBA 522

Introduction
For a business to be well known in the market there is a need to let people know about the products or services it is going to provide. Marketing a product in an effective way can help boost the business. There are many ways of marketing a product, and advertising may be considered one of the most effective tools to do so. Lake (2012) has defined marketing as "The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products." Advertising on the other hand, is a business strategy to get a large number of customers. “The advertisements emphasise the positive and maximise the attractiveness” (Kim, Cheong & Zheng, 2009). There can be various media to advertise a product such as audio, video, word of mouth, online advertising, print advertising, banner/billboard advertising, and in store advertising.
The present research will be conducted to find how effective the advertising media used by Desi Junction has been in attracting new and retaining existing customers. Desi Junction, located at 88th Ave. Scott Road, and now with its second location at 137St 72 Ave., has been serving people Indian cuisine since January 2006. Desi Junction's main objective is to promote sales and to increase market share by attracting more customers. Some of the advertising media used by Desi Junction are mailing brochures to households, newspaper, and radio advertising. Promotional tools that Desi Junction has been using to retain existing customers and attract new customers are discounts, sport-night events, discount coupons and two-for-one specials. The present research will find out if these promotional tools have proved effective in promoting Desi Junction's...

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