The business organization needs to communicate about their product or service to their target customer for the following reasons:
- By providing information about the product or services the business firm can increases its sales volume.
- The business organization needs to communicate about their product to the target audience to inform, remind, assure, reassure and finally to persuade them to buy.
- It helps to create an image and reputation not only of the products but also of the producer or advertiser. In this way, it creates goodwill for the manufacturer.
- It helps to establish a direct contact between manufacturers and consumers.
- It leads to smoothen the demand of the product. It saves the product from seasonal fluctuations by discovering new and new usage of the product.
- It creates a highly responsive market and thereby quickens the turnover that results in lower inventory.
- Advertising is necessary to meet the competition in the market and to survive.
- Communicating about the product and services helps customer to know where and when the products are available. This reduces their shopping time.
- It provides an opportunity to the customers to compare the merits and demerits of various substitute products.
- This is perhaps the only medium through which consumers could know the varied and new uses of the product.