ADVERTISING (Objectives, Functions & Advantages)

Explore the impact of advertising with a deep dive into its objectives, functions, and advantages.

1. ADVERTISING Objectives, Functions & Advantages

2. Meaning of Advertising Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea. The process of spreading product information among the potential buyers through a public medium in order to maximize sales. Such a public medium includes, among others, newspapers, magazines, television and radio.

3. Objectives and Functions Promotion of sales: Advertising is done to create demand for a product. Educate public about product: Advertising not only promotes product but also make people aware about their proper use. Introduction of new product: Whenever a new product is launched in the market, it must be brought to the notice of public through advertisements.

4. Overcome competition: In order to survive in competition, the good features of the product should be brought to the notice of public through advertisements. Mass production: Large scale production will be possible only if there is a market for it. Mass production will reduce the overall cost also.

5. Advertisement can do these things Introduce a new product. Create demand. Simulate the trade. Helps make a product competitive in market. To reach mass market. Give information about the product. Help determine buyer’s preference. Reduce selling expenses. Build customer relations. Test sales technique. Maintain prestige of the company.

6. Advertisement cannot do these things Sell a bad product twice. Sell an overpriced product. Sell a poorly distributed product. Sell a seasonal product out of season. Sell products to persons having no use for them. Do the selling job alone.

7. Advantages of Advertising

8. ADVANTAGES TO MANUFACTURER It creates demand for new products by informing people about the availability. It helps in expanding the market by attracting more people to buy. It creates goodwill by making the name of the manufacturer and his products famous. It facilitates quick turnover of goods by promoting highly responsive markets. It reduces the cost of distribution by popularising the products.

9. It reduces the cost of production by making large scale production possible through creation of demand . It increases profit by increasing sales, promoting large scale production, reducing cost of production and cost of distribution. It increases labour productivity by encouraging them to produce better quality goods and achieve better performance.

10. ADVANTAGES TO CUSTOMERS It facilitate purchasing by educating consumer to select correct brands of commodities. It paves the way for better standard of living as consumers come to know about the new products available in the market. It makes goods available at reduced prices. It increases the utility of commodities. Consumers come to know about the proper use of commodities through advertising.

11. It saves consumer’s time as they have not to waste their time in selecting commodities and they can make up their mind about the brand they have to purchase. Consumers get good quality products as it encourages manufacturers to produce better quality products. It reduces the possibility of being cheated as through advertisement consumers come to know about the price and composition of the product.

12. SELECTING A SUITABLE MEDIA Nature of the product: A product that is needed by all will encourage mass media like print, broadcast, telecast, etc. Nature of the market: The market may be national or local or international. If a product is sold nationally or internationally, then magazines, television and cinemas may be useful, if a product is local then cable and local or regional newspapers may be a better choice.

13. Type of audience: if audience is uneducated then radio, television can be used. If audience is literate then magazines, newspapers can be used for advertisement. Availability of funds: it also affects the type of media used. For ex: in newspaper one has the option of coloured or black & white printing, which can be decided on the basis of available funds. Media used by competitors: An advertiser should carefully study the moves of competitors as to media selected.