The position and function of advertisement in social economy
Modern commodity production, no matter from the point of view of product production, distribution, exchange and consumption, has the characteristics of huge quantity, wide circulation range and abstract customers. Huge quantity refers to the huge number of products produced and sold, with a wide variety of products, changeable colors and fierce market competition. Wide circulation means that the product sales market is broad, breaking geographical boundaries and selling to vast areas at home and abroad. Abstract customer means that there is no direct connection between production and consumption, and there are many intermediate circulation links. The sales target is the public in a certain region or class, not a specific customer. Due to the above market characteristics, in order to accelerate the whole process of commodity circulation, we must make full use of effective advertisements, spread product information quickly, accurately, timely and widely, and communicate the information between production and consumption, so that a large number of products can circulate quickly from production to consumption. At the same time, through advertising, we can instill some specific information into consumers according to their needs, so that the products of specific brands can establish a good brand image among consumers, thus attracting customers, expanding sales and improving the market share of specific products in the fierce market competition. Therefore, modern advertising has become an information bridge closely connecting production and consumption, and an important tool to convey economic information and promote social and economic activities and prosperity. If there is no advertisement, the information transmission between production and consumption will be blocked or even the information flow will be interrupted. As a result, production is stagnant and commodity circulation channels are blocked, which brings serious consequences to social production and people's lives and seriously hinders the normal development of social economy.
In modern commercial society, it has become increasingly important to rely on advertising, use advanced media and communication technology, strengthen the information connection between production, supply and sales, disseminate commercial information, give play to the role of non-commodity salesmen, and provide market information consultation and guidance for enterprises' production through information feedback of advertising activities to ensure the stability and healthy development of social economy. Practice has proved that no other means can replace this position of advertising in social production and social and economic life.
The Relationship between Advertising and Market Development
Advertising is a product of commodity economy and an objective existence derived from the development of social economy to a certain extent. Its emergence and development is independent of human will, and it follows its own development law. Advertising develops with the development of commodity economy, which is a sign of the development of commodity economy. Therefore, the development of advertising is closely related to the development of market economy.
natural economy
The characteristic of natural economy is that production is not for exchange, but for directly meeting the needs of oneself, family members and economic units. Therefore, in the natural economy, food, clothing, housing and transportation are self-sufficient. This kind of economic form is generally a small-scale economic unit, or a family-based production unit, with almost no socialized production form and extremely low level of productivity development. In this case, although there is a certain division of labor in the socio-economic structure and a certain degree of commodity production and commodity exchange, its scale is too small to form a large-scale product exchange and the market development is not completed. So it has little impact on the whole social and economic life. At present, the level of advertising development is very low, and there are only some primitive advertising forms, such as hawking and signboards, and the media technology of advertising is also very primitive and backward. Due to the underdevelopment of mass media technology, advertising activities are in a very scattered state, lacking organization and management of advertising.
commodity economy
Commodity economy is just the opposite of natural economy, which is developed on the basis of extensive division of labor in social production. Due to the extensive social division of labor, socialized production has been fully developed, with unprecedented production scale, huge number of products and various varieties. The purpose of production is also for direct exchange. Therefore, the commodity market is unprecedentedly developed, commodity transactions are carried out in large quantities, and market regions break through geographical boundaries and tend to be integrated.
In a society where commodity economy is fully developed, social and economic activities are completely dominated by market economic activities. Due to the unprecedented development of socialized mass production, the commodity market has new characteristics of huge quantity of goods, vast market area and abstract customers, which has increased many links between production and consumption, from "production-consumption" in natural economy and "production-exchange-consumption" in semi-market economy to "production-circulation-exchange-consumption", especially in, therefore, in order to communicate the circulation of production and consumption, accelerate. At the same time, through the information feedback mechanism of advertising activities, the information of consumer market is fed back to producers, so that advertising plays the role of information bridge between producers and consumers. Due to the independent information transmission function that advertising must undertake, and the organization and industrialization of advertising activities, full-time advertising companies have emerged to engage in advertising business.
Practice has proved that the more developed the commodity economy, the more developed the advertising industry, the more perfect its organizational form and the more complete its service function. Statistics show that the United States, with the most developed economy in the world, is one of the countries with the best advertising activities, the most advertising expenses and the most perfect advertising industry. The annual advertising expenditure of the United States accounts for more than half of the global advertising expenditure, and among the world's most famous 10 advertising companies, the United States accounts for 8. At the same time, the advertising industry in modern western developed countries is also developing towards providing comprehensive information services for advertisers and comprehensive advertising agents for customers. From 1983 to 1987, we can also see the relationship with economic development.