The document outlines the meaning, objectives, functions, and advantages of advertising as a marketing communication tool designed to promote products and services. It details the benefits of advertising for both manufacturers and consumers, emphasizing demand creation, market expansion, and consumer education. Additionally, it covers the considerations for selecting suitable advertising media based on product nature, market type, audience, and available funds.

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ADVERTISING
Objectives, Functions & Advantages

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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.

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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.

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• 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.

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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.

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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.

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Advantages
of
Advertising

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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.

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• 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.

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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.

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• 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.

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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.

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• 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.