Answer:
Advertising motivates people to spend more by conveying useful information, which tells them about product and service choices, and accelerate the regular acceptance of new products and to lift the level of acceptability of established products, so Consumers who view the advertisement update their information and consumption decisions and may purchase the product. In fact demand for product, which advertisement showed, goes up so company ‘s profit increase. Also this event cause on company’s security, it means by increasing its profit,its finance is more stable, so company feel more safety. Finally, company decide to increase the number of its product or it wants to make a new product. for each of them it needs new employee. Thus, advertising makes a job or it increase employment in our society. For example U.S. advertising accounts for about 2.5 percent of the country’s $14 trillion gross national product. American consumers rely heavily on advertising to influence how they spend some $9 trillion annually on various goods and services. A 1999 study by one of the country’s premier econometric modeling firms, the WEFA Group, and Nobel Laureate in economics Dr. Lawrence R. Klein further underscored this economic impact. The study found that advertising played a key role in generating 18.2 million of the 126.7 million jobs in the United States in that year.
3.2-secondly,advertising reduce selling cost. Companies believe that advertising is one of the best way which can introduce their new product to their costumer even other people which do not have any information about their product. They know that it is impossible to introduce their product to each person face to face. It takes a lot of time. In fact their money and their time is wasted by doing this work. At least this event increase their product selling cost, so advertising helping them by showing their product to other people and reduce selling cost.
