Of cause there is a heavy competition in the market. Any manufacturer must keep reminding people about their products or services. But as a customer what would you get out from these advertisements. This is what every manufacturer or a service provider should ask themselves if they are on a lean movement.
Manufacturers are not going to simply reduce their cost of advertising from their profit margins. They will add it to the product you are buying. So you will be paying a fair percentage of the price not for actual value of the product but for the advertisements you see on TV or on a news paper or in a magazine. Ever thought about this? Isn’t it interesting to understand that we are paying for those colorful and lovely advertisements we see daily, second after second as customers.
When any manufacturers produce more than the requirement of the market he has to force the market to buy his product. When everyone does it, every one will do the same and will fall in to the endless loop of trying to beat the other with advertisements. This is known as over production in lean manufacturing context. When manufacturing happens before market requires it, in quantities which are higher than the requirement there is over production. This is one of the prime reasons to have higher work in progress in your manufacturing facility. Once produced the next challenge is to sell the products since there is no real demand in the market for that particular product. This will mean extensive advertising and special offers etc, etc.
Lean proposes to produce the goods when they are required by the market and in quantities which are required by the market. This is the base for pull manufacturing. Product is pulled by the demand created by the customer. Here there is no need for advertising to sell your products. No stock holding costs, WIP and other related issues.
Think about it. What is the price your customers are willing to pay when they are buying your product? Will they be willing to pay for those adds appear?