“It pays to advertise.” Do you agree with this statement? Give reasons in support of your answer.

Yes, I do agree with this statement as it plays an important role for various parties. The role of advertisement becomes clear through the following facts:
(A) Importance to Manufacturers: The importance of advertisement for manufacturers is cleared from the following discussion:
(i) Enhancing Customers' Satisfaction and Confidence: Through the medium of advertisement the manufacturers spread information about their product to the consumers. Only after having information about the new products, people decide to buy them. In this way, there is an increase in customers' confidence and satisfaction.

(ii) Helpful to Increase the Demand of Existing Products: The manufacturers regularly give information about their existing products through the medium of advertisement. As a result of it, people get acquainted with those products and their manufacturers and they purchase those products time and again. When the old customers repeatedly buy the same product, it also has a positive effect on the new customers. In this way, advertisement helps in increasing the demand for the old products.

(B) Importance to Society: Main benefits accruing to society on account of advertising are as follows:

(i) Helpful to Generate More Employment: Advertising is instrumental in generating more employment opportunities and creating diverse kinds of jobs. It provides jobs to artists, screen printers, block-makers, script-writers, painter, etc. Today, advertising has become a profession. Some companies do only advertising job.

(ii) Helpful to Improve the Standard of Living: Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. Both have a positive effect on their standard of living.

(C) Importance to Customers: Main advantages of advertising to the customers are as under:

(i) Reduction in Prices: Advertising stimulates demand, production is on large-scale and cost of production per unit falls. Due to fall in production cost, price of the commodity is reduced.

(ii) Knowledge of Various Products: People come to know about different kinds of products by means of advertising. Thus, the customer has a large variety of goods to choose from. He picks up the best from among them.