Manaswinivarada

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How Advertisements Help Business Firms
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How Advertisements Helps Business Firms. 

• In this modern world, everything depends upon
  things that attract people more. Remember looking
  into some posters, wallpapers etc, filled with
  some content on products or services?  What are
  these and why are those put up everywhere? Have
  you ever wondered why visibility is so
  important?. Well, this information that you see
  is simply called Advertisement. Businesses 
  largely depend on this  mode of communication, 
  to reach out to target customers more
  effectively. Everyone has a question like, are
  they useful?. If yes, how and what are the
  different ways of reaching people?

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What are Advertisements?

• Advertisements are very effective and crucial
  means of communication, supplying relevant
  information for the promotion of goods and
  services. It is a form of paid non-personal
  communication,  wherein business ideas and
  information on products are sent out to people.
• We have seen advertisements of cement companies
  like Birla, Aditya, j.k and many more. Like we
  have for laptops, t.v, bikes, cars etc, where the
  company provides needful information about their
  products to attract customers to buy their
  products, increasing their sales and in turn,
  their revenues.
• Customers get easily attracted towards catchy or
  interesting ads that appear in newspapers,
  magazines,  TV and even social media. 
• Social media helps companies in focused
  targeting. This means, you can decide who sees
  your ad and when. This can be done through paid
  campaigns on various social media platforms like
  facebook.
•  If your customers are in the age group of 18 and
  above, belonging only to your city, your ad will
  feature only on the devices of those people.
  Thus, such paid campaigns help firms target
  customers better and more effectively, while also
  curtailing costs incurred in campaigning. 

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Unethical Advertisements

• Ethics in advertising stand on the border of the
  right and the wrong. There are certain rules and
  restrictions that companies have to follow, while
  advertising, so that they do not offend or harm
  the interests of either their viewers or their
  competitors. 
• But what are unethical advertisements?. Well,
  using advertisements in the wrong way or, making
  misleading or false claims to lure people into
  buying products, are some ways of unethical
  advertising. Ads meant for children should be
  clear and transparent about the product, its
  uses,etc.  This is because, sometimes, children
  misrepresent ads and not quite understand what
  the ad is actually about, especially children
  under 12 years of age.  However, some say it is
  unethical to target children under 12, in the
  first place,  as they may not understand what an
  ad is, and view it in a way they are not supposed
  to. 

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When are Ads considered unethical?

• When ads,
•  provide false or wrong information.
• degrade competitors.
• are against public and notional interest
• present immoral activities
• use others personal information
• Derogate a caste, community or religion.
• they are considered unethical.

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Ethical advertisements 

• Simply put, ad ethics mean a set of moral
  principles and rules which companies should abide
  by, while presenting their ads to the public. One
  of the best ethical advertisements are alcohol
  ads. Till date there has been no ad showing
  actual liquor, instead they use sodas, water etc.
  Similarly, ads for cigarettes and tobacco do not
  talk about these substances directly as these
  cause cancer and other diseases, and have been
  banned in countries like India, Norway, Finland
  etc. This type of advertising is called
  Surrogate Marketing i.e., marketing the
  original product via other products.
• Generally, big companies never lie as they have
  to prove their points to various ad regulating
  bodies. Truth is always said but not completely.
  Sometimes it is better not to reveal the whole
  truth in the ad but at times truth has to be
  shown for betterment. Recently, the Vatican
  issued an article which says ads should follow
  three moral principles - truthfulness, social
  responsibility and upholding human dignity. 
• So, ethical Ads are very important in building
  credibility. By being open in their
  communication, companies show how they have
  nothing to hide and that they genuinely care for
  those who are buying their products. 

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Ways advertisements help businesses

• Advertisements help businesses boost their
  profits by reaching more people and making them
  aware of their products and services, resulting
  in more sales. The following are some benefits of
  advertising 
• Advertisements make your company,  money.
• What it means is, ads attract more people within
  a short period of time and increase sales. When
  consumers see more strong and positive ads,  they
  are more willing to buy those products. 
• Ads keep the consumers updated about your
  product.
• When a new product is ready to launch, Ads gives
  or provides information so that when the products
  enter the market, the sales should be at its
  peak. 
• Ads give an edge over competitors.
• In this strong competitive world, people choose
  those which are more convincing over those who
  are not.

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Ways advertisements help businesses

• Advertisement helps businesses to stay ahead of
  competitors. Advertisements are how you convince
  the consumer that you are to whom they should
  choose.
• Advertisements attract new customers.
• Ads bring new customers into your stores, thus
  helping in market penetration. Again, more
  customers, mean more sales. Besides, the more
  times people see your ads, greater is the
  possibility of them remembering your brand.
• Advertising increases company traffic.
• More consumers visit business after seeing their
  ads. More customers mean more sales and more
  business for you. A survey of 3000 companies
  found that advertisers who maintained or expanded
  their advertising over a five-year period found
  an increase of 100 sales, and companies who cut
  their advertisements grew at half the rate,  than
  those who advertised steadily.

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Free Advertisements- Zero cost Ads.

• Creative and innovative methods of advertising
  are more effective than spending huge amounts on
  Ads. Businesses get large benefits when they find
  no cost Ads. 
• One of the best examples for this is Starbucks.
  They write down the customers names on the cups
  and call each customer by their name. Starbucks
  breaks the barrier separating friends from
  strangers. This is how you make people feel
  welcome so that they buy from you again. You must
  have seen people posting pictures of their
  Starbucks cup,  with their names on it. This
  gives free promotions,  worth billions of
  dollars. Can you think of any other,  similarly
  innovative promotional strategy?

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Conclusion

• I think it is important that we all recognize
  the power advertising has in influencing our
  choice of brands, both consciously and
  subconsciously. Our society is now dependent on
  commerce, and many businesses depend on
  advertising their brands in order to stay in
  business. But, it is probably better to keep it
  regulated. Nowadays companies have to adjust
  according to its consumers,  for their long term
  benefits. Ads play a vital role in bringing
  customers towards your business. A business
  should keep in mind the cost of advertising and
  the amount of returns from it. Every business
  works differently. Ads should be unique in this
  super competitive market. Brands that present
  efficient ads are more likely to be favoured over
  other brands.

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Reference 

• www.Adsindia.in
• www.studymodereasearch.in