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Advertisement has been called “the voice of business”, for it announces new products and describes new uses and improved features of familiar ones. It seeks to make people know the things they need and to make them want to buy these things, and it tells what products or services are on the market, and how they can be obtained①.
The advertisement plays a vital② role in the spread-out and flow of goods. It puts up a bridge between factories or companies and shops, or stores and customers. Either side of them has no difficulty in finding cooperative partners.
Advertisements lead to improving products by stimulating competition③. Through advertisements, companies selling the same or similar products try to win each other for the attention of the buyers. The competition forces companies to improve their products so that people will buy them.
Advertisements can also lower the prices of products by creating the mass demand, or mass markets that help support mass production. Mass production lowers the costs of manufacturing④, and then the manufacturer can lower his selling prices. As a result, customers will buy commodities⑤ at cheap prices.