To understand why advertising is necessary, you need to understand the principles of market functioning. Whatever the product, hair shampoo or apartment in a new building, in the absence of a choice of options there is no need for advertising. When the buyer is offered only one type of product, then everyone is forced to buy the same thing. When several types of goods or services appear on the market, there is a need for additional information: which one is better? It is this information that advertisers are trying to convey.
Advertising and competition
A potential buyer can judge the quality of goods only in appearance, and advertising provides additional information about one or another of its properties. That's what advertising is for: with the help of advertising materials, a new manufacturer can get onto an already formed market, thus advertising does not allow the market to stagnate and monopolize. With the help of it, new brands gain access to the buyer by providing a better offer than previously existing ones: better or cheaper goods, with additional useful properties or related services. As a result, the market is becoming more diverse and quality.
Advertising and freedom of choice
In a free market, store shelves are literally littered with a multitude of products, giving the buyer an almost unlimited choice. Try to imagine the opposite situation: instead of thousands of different modifications and types, stores offer only one standard option. In this case, competition would disappear, the manufacturer would create only one product in large quantities and advertising would not be needed. With no choice, buyers are forced to be content with what they have.
However, the needs of different people can be completely different, and what is suitable for one is absolutely not suitable for the other. In the conditions of free choice and the presence of many manufacturers, the buyer gets the opportunity to choose what he likes. Unclaimed goods are deposited on shelves and gradually withdrawn from circulation, making room for better things. When a buyer has a choice, there is a need for information. That's what advertising for products and services is for.
Advertising and wealth
If the economy focused on the production of only basic necessities, humanity would still use equestrian traction and foul-smelling laundry soap. However, this, fortunately, did not happen, and largely thanks to advertising. Desiring to live better, people created various objects that made life simpler, more comfortable and more enjoyable. Advertising informed consumers about new inventions created to meet a particular need. After all, how else could people find out about the advent of cars, microwave ovens, computers?
Many people believe that advertising makes people buy more than they need. In fact this is not true. It only informs potential buyers about new types of goods designed to meet any need. And this does not create new needs.
Some people believe that the market is saturated with “unnecessary” or “excess” goods. Someone is convinced that the presence of fashionable lipstick, high-speed computers, electric scooters are not real, but artificial, far-fetched needs that arose exclusively under the influence of advertising. However, in conditions of free market relations, manufacturers have the opportunity to produce goods of their choice, but no one can afford to do what is not in demand. Those people who do not need one or another type of product or service may simply not purchase it, because there is not only freedom of choice, but also freedom of refusal.
Economic laws of market development indicate that advertising stimulates consumer demand, which, in turn, leads to increased production. Greater production leads to cheaper products. Previously, buyers had to spend two months on the purchase of a refrigerator, but today only a part of their salary is for one month. If you refuse advertising, the level of sales will certainly decrease, which will lead to an increase in the price of most types of goods and services.
Advertising improves product quality
The existence of competition among manufacturers leads to improved product quality, as each brand tries to surpass its rival. That's why you need to advertise goods: when advertising new products, competition intensifies. And with it, the consumer characteristics of things are improving.
Do I need permission to advertise?
To start advertising your product or service, no additional permissions are required. The exception is only some types of outdoor advertising. Its placement requires the payment of a local advertising tax, the amount of which varies depending on the region.
This is why advertising is needed: it stimulates demand, increases competition, promotes production growth, which leads to improved quality of goods and services.