Enrolment No.

MBA Information Systems 1st Year Assignment

Annamalai University

1.4: Marketing Management

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Question #1: Give current example how the industries have
exercised social responsibility in business.
Answer:-

Social Responsibility
Every business operates within a society. It uses the resources of the society
and depends on the society for its functioning. This creates an obligation on
the part of business to look after the welfare of society. So all the activities of
the business should be such that they will not harm, rather they will protect
and contribute to the interests of the society.
Social responsibility of business refers to all such duties and obligations of
business directed towards the welfare of society.
These duties can be a part of the routine functions of carrying on business
activity or they may be an additional function of carrying out welfare activity.
There are several reasons to support the importance of social
responsibilities. It is related to the ethical responsibility, and differentiates
into difference level of social responsibilities, which is economic, legal,
ethical, and discretionary responsibilities. There are six main areas of social
responsibility, the employees, providers of finance, consumers, community
and environment, government, and other organizations or groups
For example, a drug-manufacturing firm undertakes extensive research and
thus, produces drugs which are qualitatively superior. It also provides
scholarships or fellowships to the family members of its employees for
studying abroad. We find, in both the cases, the drug-manufacturing firm is
carrying out its social responsibility. In case of the former, it is a part of its
routine business function while in the latter case it is a welfare function.

Concept of Social Responsibility

Aim of any business is to earn profit, however profit making is not the sole
function of a business. It performs a number of social functions, as it is a part
of the society. It takes care of those who are instrumental in securing its
existence and survival like- the owners, investors, employees, consumers
and government in particular and the society and community in general. So,
every business must contribute in some way or the other for their benefit.
For example, every business must ensure a satisfactory rate of return to
investors, provide good salary, security and proper working condition to its
employees, make available quality products at reasonable price to its
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consumers, maintain the environment properly etc.

Two principles provide the foundation for contemporary views on social

responsibility, the principle of charity and the principle of stewardship.
Social responsibility is management's obligation to make choices and take

actions that will contribute to the welfare and interests of society as well as
the organizational. Richard L. Daft.
There are at least three major contrasting views of social responsibility - the
profit concept, the stakeholder concept, and social responsibility concept.
However, while doing so two things need to be noted to view it as social
responsibility of business.
Firstly, any such activity is not charity. It means that if any business donates
some amount of money to any hospital or temple or school and college etc.,
it is not to be considered as discharge of social responsibility because charity
does not imply fulfilling responsibility.
Secondly, any such activity should not be such that it is good for somebody
and bad for others. Suppose a businessman makes a lot of money by
smuggling or by cheating customers, and then runs a hospital to treat poor
patients at low prices his actions cannot be socially justified. Social
responsibility implies that a businessman should not do anything harmful to
the society in course of his business activities.

Importance of Social Responsibility

Social responsibility of business is beneficial for both society and the
business. It is a voluntary effort on the part of business to take various steps
to satisfy the expectation of the different interest groups. The interest groups
may be owners, investors, employees, consumers, government and society
or community. But the question arises, why the business should come
forward and be responsible towards these interest groups. Let us consider
the following points:
1.
2.
3.
4.
5.
6.

Public Image
Government Regulation
Survival and Growth
Employee Satisfaction
Consumer Awareness
Solving the Social Problem

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1. Public Image:
The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon
the public image of its activities. People prefer to buy products of a company
that engages itself in various social welfare programs. Again, good public
image also attracts honest and competent employees to work with such
employers.
2. Government Regulation:
To avoid government regulations businessmen should discharge their duties
voluntarily. For example, if any business firm pollutes the environment it will
naturally come under strict government regulation, which may ultimately
force the firm to close down its business. Instead, the business firm should
engage itself in maintaining a pollution free environment.
3. Survival and Growth:
Every business is a part of the society. So for its survival and growth, support
from the society is very much essential. Business utilizes the available
resources like power, water, land, roads, etc. of the society. So it should be
the responsibility of every business to spend a part of its profit for the
welfare of the society.
4. Employee satisfaction:
Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation,
transportation, education and training. The employers should try to fulfill all
the expectation of the employees because employee satisfaction is directly
related to productivity and it is also required for the long-term prosperity of
the organization. For example, if business spends money on training of the
employees, it will have more efficient people to work and thus, earn more
profit.
5. Consumer Awareness:
Now-a-days consumers have become very conscious about their rights. They
protest against the supply of inferior and harmful products by forming
different groups. This has made it obligatory for the business to protect the
interest of the consumers by providing quality products at the most
competitive price.
6. Solving the Social Problem:
The measurement of social investment deals with the degree to which the
organization is investing both money and human resources to solve
community social problems. Here, the organization could be involved in
assisting community organizations dedicated to education, charities, and the
arts. In order to avoid the limited of resources, most of the organizations will
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possess the resources needed to tackle social problems. A good image of the
companies develops. It will lead to even more consumers to have confidence
on those companies and more consume on the goods of the companies.
These companies would be profitable in the long run period. Therefore, being
social responsibilities is very important to an organization in order to create a
good image to the company.

Responsibility towards various groups

Business organizations interact with various groups of people, so
responsibilities vary accordingly. Generally business interacts with owners,
investors, employees, suppliers, customers, competitors, government and
society. They are called as interest groups because by each and every
activity of business, the interest of these groups is affected directly or
indirectly.
1.
2.
3.
4.
5.
6.
7.
8.

Responsibility
Responsibility
Responsibility
Responsibility
Responsibility
Responsibility
Responsibility
Responsibility

towards
towards
towards
towards
towards
towards
towards
towards

Owners
Investors
Employees
Suppliers
Customers
Competitors
Government
Society

1. Responsibility towards Owners:

Owners are the persons who own the business. They contribute capital and
bear the business risks. The primary responsibilities of business towards its
owners are to:
Run the business efficiently.
Proper utilization of capital and other resources.
Growth and appreciation of capital.
Regular and fair return on capital invested.
2. Responsibility towards Investors:
Investors are those who provide finance by way of investment in debentures,
bonds, deposits etc. Banks, financial institutions, and investing public are all
included in this category. The responsibilities of business towards its
investors are to:
Ensuring safety of their investment,
Regular payment of interest,
Timely repayment of principal amount.
3. Responsibility towards Employees:
Business needs employees or workers to work for it. These employees put
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their best effort for the benefit of the business. So it is the prime
responsibility of every business to take care of the interest of their
employees. If the employees are satisfied and efficient, then the only
business can be successful. The responsibilities of business towards its
employees include:
Timely and regular payment of wages and salaries.
Proper working conditions, welfare amenities and opportunity for
better career prospects.
Job security as well as social security like facilities of provident fund,
group insurance, pension, retirement benefits, etc.
Better living conditions like housing, transport, canteen, crches
etc.
Timely training and development.
4. Responsibility towards Suppliers:
Suppliers are businessmen who supply raw materials and other items
required by manufacturers and traders. Certain suppliers, called distributors,
supply finished products to the consumers. The responsibilities of business
towards these suppliers are:
Giving regular orders for purchase of goods.
Dealing on fair terms and conditions.
Availing reasonable credit period and timely payment of dues.
5. Responsibility towards Customers:
No business can survive without the support of customers. As a part of the
responsibility of business towards them the business should provide the
following facilities:
Products and services must be able to take care of the needs of the
customers.
Products and services must be qualitative and regularity in supply of
goods and services.
Price of the goods and services should be reasonable and
affordable.
All the advantages and disadvantages of the product as well as
procedure to use the products must be informed do the customers.
There must be proper after-sales service.
Grievances of the consumers, if any, must be settled quickly.
Unfair means like under weighing the product, adulteration, etc.
must be avoided.
6. Responsibility towards Competitors:
Competitors are the other businessmen or organizations involved in a similar
type of business. Existence of competition helps the business in becoming
more dynamic and innovative so as to make itself better than its
competitors. It also sometimes encourages the business to indulge in
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negative activities like resorting to unfair trade practices. The responsibilities
of business towards its competitors are
Not to offer exceptionally high sales commission to distributers,
agents etc.
Not to offer to customers heavy discounts and /or free products in
every sale.
Not to defame competitors through false or ambiguous
advertisements.
7. Responsibility towards Government:
Business activities are governed by the rules and regulations framed by the
government. The various responsibilities of business towards government
are:
Setting up units as per guidelines of government
Payment of fees, duties and taxes regularly as well as honestly.
Not to indulge in monopolistic and restrictive trade practices.
Conforming to pollution control norms set up by government.
Not to indulge in corruption through bribing and other unlawful
activities.
8. Responsibility towards Society:
A society consists of individuals, groups, organizations, families etc. They all
are the members of the society. They interact with each other and are also
dependent on each other in almost all activities. There exists a relationship
among them, which may be direct or indirect. Business, being a part of the
society, also maintains its relationship with all other members of the society.
Thus, it has certain responsibilities towards society, which may be as follows:
To help the weaker and backward sections of the society
To preserve and promote social and cultural values
To generate employment and promote sports and culture
To protect the environment and conserve natural resources and
wildlife
To provide assistance in the field of developmental research on
education, medical science, technology etc.

Social Values and Business Ethics

Certain activities, conduct and behavior of some members of the society is
considered to be undesirable or harmful to others. Similarly, desirable acts
and conduct of people are recognized and appreciated in society. Social
values refer to the general recognition in society about which acts are good
and desirable on the part of people and which acts are not. In relation to
business, social values of business may indicate:

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The characteristics of good business.

Objectives which are desirable for business to follow.
The manner in which business activities should be conducted in the
interest of society.

For example, suppose if any business indulges itself in selling adulterated

goods or charging higher price or polluting the environment, we consider it
to be bad. Thus, social values of the business form the base for social
responsibilities.

Examples of some Indian Industries exercising Social

Responsibility
Infosys Technologies Limited
Infosys is actively involved in various community development programs.
Infosys promoted, in 1996, the Infosys Foundation as a not-for-profit trust to
which it contributes up to 1% PAT every year. Additionally, the Education and
Research Department (E&R) at Infosys also works with employee volunteers
on community development projects. Infosys leadership has set examples in
the area of corporate citizenship and has involved itself actively in key
national bodies. They have taken initiatives to work in the areas of Research
and Education, Community Service, Rural Reach Program, Employment,
Welfare activities undertaken by the Infosys Foundation, Healthcare for the
poor, Education and Arts & Culture.
ITC Limited
ITC partnered the Indian farmer for close to a century. ITC is now engaged in
elevating this partnership to a new paradigm by leveraging information
technology through its trailblazing 'e-Choupal' initiative. ITC is significantly
widening its farmer partnerships to embrace a host of value-adding
activities: creating livelihoods by helping poor tribals make their wastelands
productive; investing in rainwater harvesting to bring much-needed irrigation
to parched dry lands; empowering rural women by helping them evolve into
entrepreneurs; and providing infrastructural support to make schools exciting
for village children. Through these rural partnerships, ITC touches the lives of
nearly 3 million villagers across India.
Mahindra & Mahindra
The K. C. Mahindra Education Trust was established in 1953 by late Mr. K. C.
Mahindra with an objective to promote education. Its vision is to transform
the lives of people in India through education, financial assistance and
recognition to them, across age groups and across income strata. The K. C.
Mahindra Education Trust undertakes a number of education initiatives,
which make a difference to the lives of deserving students. The Trust has
provided more than Rs. 7.5 Crore in the form of grants, scholarships and
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loans. It promotes education mainly by the way of scholarships. The Nanhi
Kali project has over 3,300 children under it. We aim to increase the number
of Nanhi Kalis (children) to 10,000 in the next 2 years, by reaching out to the
underprivileged children especially in rural areas.
Tata Consultancy Services
The Adult Literacy Program (ALP) was conceived and set up by Dr. F C Kohli
along with Prof. P N Murthy and Prof. Kesav Nori of Tata Consultancy Services
in May 2000 to address the problem of illiteracy. ALP believes illiteracy is a
major social concern affecting a third of the Indian population comprising old
and young adults. To accelerate the rate of learning, it uses a TCS-designed
ComputerBased Functional Literacy Method (CBFL), an innovative teaching
strategy that uses multimedia software to teach adults to read within about
40 learning hours.
Dalmia Cement (Bharat) Limited
The water source for the villages in and around the Dalmia Cement factory is
dependent on rains. During summer months, the villagers, particularly
women folk, travel long distances to fetch water for drinking and other
purposes. Considering the difficulties and hardship faced by the people, the
company, after discussing with the village elders and concerned Government
authorities, took the initiative of making water available by:
Providing deep bore wells. So far, 45 bore wells have been provided
in various villages, namely Kallakudi, Palanganathan, Malvoi,
Elakkurichi,
Muthuvathur,
Pullabmadi,
Edayathankudi
etc.
Approximately, 300 to 400 people get adequate drinking water from
each bore well.
Water tanks to store the water.
Rain and seepage water is harvested in the quarries of the company
is pumped into a tank and supplied to inhabitants.
44,000 trees were planted and nurtured over a period of eight
years. The presence of large trees and vast greenery has
considerably improved the ecology in the area.
India Aluminum Company Limited
The Women's Empowerment project was initiated by Indal-Muri in Jharkhand
where the Company operates an alumina refining plant. It was implemented
in collaboration with an NGO, CARE-Jharkhand. The central problem this
project has attempted to address is the very low socio-economic condition of
the rural and tribal population of Silli block caused by low agricultural
productivity, lack of or low cash income, unresponsive health/ Integrated
Child Development Services (ICDS) schemes. The Project has helped set up
around 100 Self Help Groups so far, which are running successfully with
members trained in various vocational incomegenerating skills, agricultural
methods for better yields and health care initiatives. About 2000 women
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have been brought into the fold of this activity helping to improve not just
their own lives but the quality of life of their children and families as well.
The Indal Women's Empowerment & Child Care project employed integrated
package of strategies and interventions, such as:
Establishment and Strengthening
strategically selected villages;

of

Self

Help

Groups

(SHG)

in

30

Promotion of Nutrition Gardens and improved land agricultural and

natural resource management practices; and
Creation of demand for improved ICDS/ health services through Self
Help Groups and strengthening ICDS/ Health Department's service
delivery

Larsen & Toubro (L & T) Limited

Considering that construction industry is the second largest employer in
India after agriculture, employing about 32 million-strong workforce, L&T set
out to regulate and promote Construction Vocational Training (CVT) in India
by establishing a Construction Skills Training Institute (CSTI) on a 5.5 acre
land, close to its Construction Division Headquarters at Manapakkam,
Chennai. CSTI imparts, totally free of cost, basic training in formwork,
carpentry, masonry, bar-bending, plumbing and sanitary, scaffold and
electrical wireman trades to a wide spectrum of the rural poor.
As a result of the good response it received in Chennai, CSTI set up a branch
at Panvel, Mumbai, initially offering training in formwork, carpentry and
masonry trades. The Manapakkam and Panvel facilities together provide
training to about 300 candidates annually who are inducted after a process
of selection, the minimum qualification being tenth standard. Since
inception, these two units have produced about 2,000 skilled workmen in
various trades, with about sixty percent of them being deployed to L&Ts
jobsites spread across the country. The success of this training-initiative
demonstrates that adoption of systematic training techniques are bound to
yield efficient and skilled personnel in the shortest possible time, and in the
power to convert the potential of the Rural Youth in Construction and
upgrading Rural Economy in a small way.

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Question #2: Examine from current periodicals examples of best
practices in modern advertising? Why do you consider them as
good advertisements?
Answer:-

Modern Advertising
Advertising has evolved into a vastly complex form of communication, with
literally thousands of different ways for a business to get a message to the
consumer. It could be said that cave paintings in some way represented the
first forms of advertising, although the earliest recognized version of what we
know as advertising was done on papyrus by the Egyptians. And in Pompeii,
the ruins suggest that advertising was commonplace.
However, today the advertiser has a vast array of choices. The Internet alone
provides many of these, with the advent of branded viral videos, banners,
advertorials, sponsored websites, branded chat rooms and so much more.
The modern advertising methods have made it even more beneficial for
every big and small company to showcase their products in a very different
unique way and perception to attract the audiences in to buying them. There
are trendy modern advertisers who are taking bigger risks and
experimenting with new concepts, which are modern and innovative.
No one wants to waste their time in lengthy conventional methods of
advertisements; people are more than willing to spend bigger money for
instant, smart, quick ideas which makes the perfect combination of creativity
and sense of advertising. Lets discuss some of the hottest trends followed
by people today that give the perfect buying appeal to people. The modern
advertising methods have given a new strategy to people to revive their old
passion of creativity that matches their products and services.

Modern Advertising Methods

Following are some of the popular and commonly used modern advertising
methods
1.
2.
3.
4.
5.
6.
7.

Web Banner Advertising

Promotional Advertising
Bandwagon Advertising
Surrogate Advertising
Pixel Advertising
Contextual Advertising
Keyword Advertising

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8. Pop up Advertising
9. Blog Advertising
10.
Restroom Advertisements
11.
Mobile Advertisement
12.
Public Relations
13.
Email Marketing
1. Web Banner Advertising:
This type of advertising is very similar to banner advertising we use on the
roads. The web banner advertisements are placed on the horizontal strip on
the top of the web page. They attract attention due the images and graphics
placed through JavaScript on the banners. These web banners ads when
clicked, leads you to advertisers web page.
2. Promotional Advertising:
This type of advertising involves giving away promotional items during
business events or conferences to garner public attention to the product. It is
one of the innovative techniques, which creates good demand for the
product.
3. Bandwagon Advertising:
It aims at convincing the potential customer to buy the product by telling him
that every other person is in favour of the brand and is using it. People tend
to buy the product if others are using it wilfully. This advertising is based on
the psychology of a consumer.
4. Surrogate Advertising:
Some products are banned from public advertisements, companies resort to
surrogate advertising by advertising their umbrella brand with other unbanned products. This reminds the customers of the actual product and thus
indirect marketing.
5. Pixel Advertising:
As in the newspapers, the amount of money charged depends on the amount
of space utilized for ads. Similarly, the Internet advertising is charged based
on the amount of pixels used. This ad was developed in the year 2005 by a
British student Alex Tew who came up with the website, The Million Dollar
Homepage.
6. Contextual Advertising:
It is a very specific form of Internet marketing. Google ad-sense was very
first form of contextual advertising. In this type of advertising, the
advertisements are selected automatically by systems that are based on the
content that is viewed by Internet users. The automated system scans the
website for keywords and sends the ads that are relevant to the content that
is being viewed by the user. Most of the search engines make use of
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contextual ads to display ads on the search engine results.
7. Keyword Advertising:
The keyword-advertising concept is based on the cost per action advertising.
This type of advertising is well known by pay per click advertising. Yahoo was
the first company to venture into keyword advertising (Yahoo Search
Marketing, Overture), it is Google Ad words program which is now most
popular for its keyword advertising. Similarly, Microsoft has come with the ad
Center application which promotes the paid form of keyword advertising.
8. Pop up Advertising:
Pop Up advertisement is designed with animated technologies. When people
surf a web page then they are forced to see your ad with pop up advertising.
By displaying your pop ups you can stir the user to make know your ad
design, content and presentation becomes more important to catch the user
attention. If you keep your ad design, content and presentation attractive
then user would interact with your ad which increases the chances to make
sales.
9. Blog Advertising:
Blogs are one of the popular mediums today for interactivity where a blogger
writes his thoughts regarding a particular topic and audiences write
comments on their thoughts. Advertisers are wisely using blogging networks
to advertise their products. Companies are using corporate blog to reach out
to their customers online by writing of new products feature, their working,
their rates, comparisons, etc.
10. Restroom Advertisements:
This seems like something out of box but restroom advertising is fast
catching up with advertisers who are keen to present their product in a very
unique and sophisticated manner. According to the survey, people are said to
have read the restroom advertisements, which grasped their attention.
11. Mobile Advertisement:
It may sound annoying for the people who get dozens of advertising
messages on their cell phones each day. But it is one of the efficient and
effective ways for companies to market their new products by messaging
every time some new product is launched, or schemes going in the company.
It attracts quite a bit of customers who do not get time visiting the stores to
check out new items and schemes.
12. Public Relations:
It is important to maintain a good public relation with your customers and
employees for a healthy company-customer relationship. Many companies
give utmost importance to public relations to maintain the company image in
front of the customers. It is one of the effective ways to market your products
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genuinely. It helps to build good relations with your customers in longer run.
13. Email Marketing:
In email marketing we can personalize the information according to his/her
needs. If a mail impresses the customer, he would respond to the mail. But
make sure that you should never and ever send spam mails, because it just
irritates the customers. Email massage should not be in the form of large
information; it should be short enough to carry the message.

Role of Advertising in Modern World

The role of advertising in our lives at present almost everywhere: we see or
hear a lot of advertisements on the TV sets, in the underground, on
billboards, in newspapers and in the public transport. Today it's almost
impossible to imagine our lives without advertisements.
The main aim of advertisers is to attract customer attention and then to
make them buy this or that product whether they like it or not. There are
intrusive advertisements for example those on the TV; in such a case buyer
understand the aims of advertisers and it's more difficult for them to make to
buy their product. The only way to make to buy it is to persuade buyer with
the help of logical arguments that they really need it.
Sometimes buyer purchases the goods they really no needed it but attracted
buy interesting poster near the shopping malls or supermarket.
Whether we like it or not but today advertising influences and change our
minds a lot. And the only thing we can do is try to think do we really need
this or that thing.
Advertising is one of the most important things present in or society today,
like an old slogan puts it 'Advertising, your right to choose'. Advertising helps
to keep the consumers informed about whatever new products or services
are available in the market at their disposal. It helps to spread awareness
about products or services that are of some use to consumer and potential
buyers.
Advertising is useful within proper limits. These limits Cleary lay down by
religion, law and our traditions.
Advertising plays a very important role for any business.
Advertising is very important because there are literally thousands
of companies manufacturing the same thing and what differentiates
their products from each other are the brand names not the actual
product.
Advertising creates competitive advantage by positioning the
product in such a way that people want to buy it.
All this boils to down to the fact that when consumers have so much choice,
why will they buy your product? Here advertising comes in to play that
promotes the product in a way that people buy it
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Importance of Modern Advertising
An advertisement is basically a message designed by the manufacturer, in
order to persuade the end consumer to go for his products or services. There
are several different types of advertising, which are channelized through
different means of mass media. At the end of the day, these messages are
meant to give suggestions to the consumer, and therefore they need to be
appealing. In order to make them appealing, the manufacturers are ready to
spend millions of dollars on the advertising agencies which promotes their
products and services. Today, the advertising industry has become a multibillion dollar industry, and going by the trends its growth is not going to
cease anywhere in the near future. One of the most important tools of
marketing, advertising is the driving factor when it comes to buying and
selling of goods and services.
From Business Point of View:
It is a well-known fact that the aim of any business is to sell goods and
services with the sole intention of making profits. The consumer will only go
for goods and services, which are offered by the manufacturer, when he
knows about their existence. And this is where advertising comes into the
picture. If you are selling a particular product which boasts of numerous
benefits and you are not quite keen on investing in advertising it, the end
consumer may not even realize that some such product even exists. Simply
put, the advertising industry provides a platform for the business entities to
spread awareness about the products and services offered by them. Contrary
to the popular myth that advertising is only restricted to the television, radio
or newspapers, advertising by word of mouth and event sponsoring can also
work wonders for a business. A good advertisement is one which doesn't just
attract the new consumers, but also persuades the loyal consumers of the
rival firms to shift bases.
From Consumer Point of View:
On the other hand, advertising is important for the consumer as it makes him
aware of the various choices that are available. Even though we get irritated
every time a commercial break starts, or every time pop ups appear while
surfing, we do go through them religiously when we intend to but these
products. To some extent these advertisements do tend to influence the
decision of the consumer, but that is fine as long as the consumer gets the
best options possible.

Modern Advertising is Good

Advertising broadens the knowledge of the consumers. With the aid of
advertising, consumers find and buy necessary products without much waste
of time. This speeds up the sales of commodities, increases the efficiency of
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labor in distribution, and diminishes the costs of selling. It is an accepted fact
that without market stimulus of heavy advertising, consumers might have
waited another sixty years for the product evaluation that took place in less
than ten years - it took after all over sixty years from the invention of the
safety razor before the first acceptable stainless steel blades appeared in the
market. These words are more than enough to testify the potentialities of
advertising in the field of modern marketing system. The main benefits of
advertising may be narrated as follows:
Benefits to Manufacturers
Benefit of advertising to manufacturers can be pointed out as below
It increases sales volume by creating attraction towards the
product.
It helps easy introduction of new products into the markets by the
same manufacturer.
It helps to create an image and reputation not only of the products
but also of the producer or advertiser. In this way, it creates
goodwill for the manufacturer.
Retail price, maintenance is also possible by advertising where price
appeal is the promotional strategy.
It helps to establish a direct contact between manufacturers and
consumers.
It leads to softening the demand of the product. It saves the product
from seasonal fluctuations by discovering new and new usage of the
product.
It creates a highly responsive market and thereby quickens the
turnover that results in lower inventory.
Selling cost per unit is reduced because of increased sale volume.
Consequently, product overheads are also reduced due to mass
production and sale.
Advertising gives the employees a feeling of pride in their jobs and
to be in the service of such a concern of repute. It thus inspires the
executives and worker to improve their efficiency.
Advertising is necessary to meet the competition in the market and
to survive.
Benefits to Wholesalers and Retailers
Benefits of advertising to wholesalers and retailers can be pointed out as
below
Easy sale of the products is possible since consumers are aware of
the product and its quality.
It increases the rate of the turn-over of the stock because demand
is already created by advertisement.
It supplements the selling activities.
The reputation created is shared by the wholesalers and retailers
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alike because they need not spend anything for the advertising of
already a well advertised product.
It ensures more economical selling because selling overheads are
reduced.
It enables them to have product information.

Benefits to Consumers
Benefits of advertising to consumers can be pointed out as below
Advertising stresses quality and very often prices. This forms an
indirect guarantee to the consumers of the quality and price.
Further large scale production assumed by advertising enables the
seller to seller product at a lower cost.
Advertising helps in eliminating the middlemen by establishing
direct contacts between producers and consumers. It results in
cheaper goods.
It helps them to know where and when the products are available.
This reduces their shopping time.
It provides an opportunity to the customers to compare the merits
and demerits of various substitute products.
This is perhaps the only medium through which consumers could
know the varied and new uses of the product.
Modern advertisements are highly informative.
Benefits to Salesmen
Salesmanship is incomplete without advertising. Advertising serves as the
forerunner of a salesman in the distribution of goods. Sales are benefited the
advertisement in following ways:
Introducing the product becomes quite easy and convenient
because manufacturer has already advertised the goods informing
the consumers about the product and its quality.
Advertising prepares necessary ground for a salesman to begin his
work effectively. Hence sales efforts are reduced.
The contact established with the customer by a salesman is made
permanent through effective advertising because a customer is
assumed of the quality and price of the product.
The salesman can weigh the effectiveness of advertising when he
makes direct contact with the consumers.
Benefits to Community or Society
Advertising provides a major role to the community or society as a whole. It
benefits the society in the following ways
Advertising, in general, is educative in nature. In the words of the
late President Roosevelt of the U.S.A., "Advertising brings to the
greatest number of people actual knowledge concerning useful
things: it is essentially a form of education and the progress of
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civilization depends on education."

Advertising leads to a large-scale production creating more
employment opportunities to the public in various jobs directly or
indirectly.
It initiates a process of creating more wants and their satisfaction
higher standard of living. For example, advertising has made more
popular and universal the uses of such inventions as the
automobiles, radios, and various household appliances.
Newspapers would not have become so popular and so cheap if
there had been no advertisements. The cheap production of
newspapers is possible only through the publication of
advertisements in them. It sustains the press.
It assures employment opportunities for the professional men and
artist.
Advertising does provide a glimpse of a country's way of life. It is, in
fact, a running commentary on the way of living and the behavior of
the people and is also an indicator of some of the future in this
regard.

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