The following are some of the reasons why firms spend money on advertising

(1) It projects good image of the firm to external world.
(2) It educates the public on the uses of the goods
(3) It leads to increase in sales
(4) It is used to let the public know of the introduction of new products
(5) It helps to enlighten the public of the availability of goods
(6) It may give rise to higher revenue
(7) It may lead to increase in production
(8) It creates employment

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