Know-How Exchange : Student Questions

Advertising affects sales by informing (potential) customers about the firm offer's existence and benefits, by convincing them it is the best solution to their need and that they should act now, and by reminding them about the offer's benefits and availability.

Advertising affects the economy by easing transactions between potential buyers and sellers, and by paying for a whole lot of free content.

From personal experience (I do not like shopping), advertising reminds me about my needs, so that I make time to check out possible solutions. It also makes me aware of firms and brands, so that salespeople (and other marketing efforts) are more effective. Finally, it partly drives which firm stocks I invest in...