ICSE Class 10 Commerce 2020 Solved Papers

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Question : 28
Total: 31
Briefly, explain any five benefits of advertising to producers.
Solution:  
Benefits of Advertising to Producers : Advertising is beneficial to the Producers in the following ways:
(i) Steady Demand : Advertising creates regular demand by smoothening out seasonal and other fluctuations. It helps in increasing and maintaining steady demand for a particular article and ensures continuity of production on a large-scale.
(ii) Increases Sales : Advertising acts as an aid to selling. It increases sale of all products and services. Goods produced on a large scale are sold by the methods of mass presentation through advertising.
(iii) Support to Dealers and Salesmen : Advertising prepares the necessary ground for the success of the efforts of the dealers or salesmen for selling the goods because it creates awareness, interest and demand for the product. It makes it easier for the salesman to approach the potential customers as they have already been familiarized with the product through the advertisement. It improves the moral of the employees and encourages them for better performance.
(iv) Helps in Introducing New Products : Advertising helps in the replacement of old habits and traditions by new and better goods and methods of use. It introduces new products or old products to new customers. Repeated advertisement through proper media helps the manufacturer in creating awareness and gaining acceptance of their products by the consumers. It may educate the consumer about the use of the new products or the new uses of the old products.
(v) Market Expansion : Advertising enables the manufacturer to expand the markets for his products. It helps him not only in retaining the old markets but also in entering and capturing the new markets. Repeat advertising carries a very forceful sales message to the prospective customers residing in remote and inaccessible areas.
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