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Q. Advertising and Creation of Utility?
Advertising creates place, time and perception utility. In case seasonal products it creates time usefulness by creating demand even in off season period. It creates place usefulness by creating demand even in those market areas where the product not earlier sold. It creates perception usefulness by making positive image of the product in the mind of the audience. Critics argue that advertising isn't a productive activity so it isn't creating any utility. However this argument is baseless as advertising is a service activity and creates utility by providing services to different sections of society viz:- distributors, manufacturers, salesmen etc.
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