Advertising: Definition,

Objectives, Importance, Types

and Functionns
Definition of Advertising
messages, which
Every daywe come across hundreds of advertising
powder, soft
tellus about various products such as soaps, detergent
drinks and services such as hotels, insurances policies etc.
promotion
Advertising is perhaps themost commonly used tool of
communicate
byan organization. Itis commonly understood asto
complete to
about a product or service. But it is not correct and
understand it as So.
Actually, advertisingincludes all the activities performed by the
enterpriseto present the goods andservices to the consumer
and to
motivate them to buy these goods and services. It is non-personal
form of communication, which is paid for by themarketer (sponsor)
has been
topromote hisgoods and services. Theterm "advertising"
defined by manyeminentauthors as

According to William J. Stanton, "Advertising consists

of allthe
non-personal, oral or
activities involved in presenting to a group,a
product or service or
VIsual, openlysponsored message regarding a
this message is called advertisement, is disseminated through
dea,
media and is paidfor, bythe identified sponsor".
one or more

According to Wheeler. "Advertising is any form of paid

non-
services tor the
personal presentation ofideas, goods and/or
purpose of inducing people to buy',

According to American Marketing Association, "Any paid

form of
non-personal presentation and promotion ofideas,
goods and
services, by an identified sponsor. The medium used are print
broadcast, and direct".
Thus, advertisingcan be definedasa paid form of non-personal
advertising
presentation of product or serviceor idea. In developing
needs and
programme,onemust start with the identification of the
wants of the marketand must take five majordecisions regarding
Mission, Money, Message, Media and Measurement of the
advertisement programme as stated by Philip Kotler 'as 5 M's of
advertising'in his book Marketing Management.
Basic Features of Advertising:
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From the above explanation and definition of the authors

we can say that advertising has following distinguishing
features:
i. Paid Form-It is a paid form of communication i.e.the sponsor
has to bear the cost of communication with the respondentsS.

ii.Non-Personal -Thereis no direct face-to-face contact between

theprospect and the advertiser. That is whyit is referred as non-
personal method of promotion.
ii.Identified Sponsor-Advertisingisalways undertaken by some
identifiedindividual or comnpany, whomakes advertising efforts and
also bearsthe cost of undertaking such effort
Elements of Advertising
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The elements of advertising are as follows:

i. Preparationor Homework:
Refers to theact ofimagining and compiling all the
possible advertisements by numerousmediums, which
areas follows:
a. Taking references from theadvertisements of competitors
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b.Readingbooks on advertising to collectideas

ii.Unique Selling Proposition (USP):
It refers to the singular benefits and advantages of a product that
creates a favorable impression in the mind of customers. The
advertisementsshould focus on USP of the product.
 iii. Maintaining a Unique Image:
AnVLRstMINTS

It indicales that an organization should stick to itsown image and

personality. The organizationshould not try toimitateits
competitors rather should focus on the betterment of its own
product or service.

iv. Teamwork:
It refers to thecollective efforts of advertising specialists of an
organization. These specialists work together towards thesuccess of
anadvertisement. The collective efforts of specialists ensure that the
product and itsimportant aspects are well explained tocustomers
throughthe advertisement.
v. Selecting an EfficientAdvertising Medium:
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Itrefers to the decisions taken toselect the appropriate medium for

advertising a product. The choice of a medium depends on the
advertising budget of theorganization,type of product, and targeted
market. Few products do not require much explanation, thus, they
canbeadvertised through amedium, such as radio. Inthis case,the
targetmarket comprises radiolistenerS who belongto lower-middle
classfamilies.
Few other products mayrequire demonstrations or visual aids, for
example, vacuum cleaners and water purification machines. Such
products targets middle-class and high-class families and can be
advertised through television.
vi. Retaining the Customers:
Itindicates that an organization should not overlook its existing
Customerswhile trying to makenew customers. It is important tor
the organization to keep producing numerous reminder
advertisements to keep its existing customers updated about the
Cxistence of the product.
Objectives of Advertising:
AOVERTISEMENTS
 The objective of advertising is nothing buttosale the product or
idea ora service. The real objective of advertising is to increase
awareness amongthe consumer about the sellers product.
According to Huigy and Mitchell,"The purposeof advertisingisto
sellgoods,services orideas to alarge group ot prospective
purchasers.

R.S. Davarstated the advertisingobjective as, "Advertising aims at

Commencing the procedure, educatingthe consumer,
Supplementing the salesman, connecting the dealer to eliminate the
competitor but aboveall, it is a link between the producer and the
Consumer".

Insimple words the following are the main objectives of

advertising:
1. Preparing Groundfor Sale ofNew Products:
Whenever a new productis introduced in the market, advertising
becomes necessaryfor informing potential consumers about the
product. In this way, advertising can beused for preparing ground
forsale of new product.

For achievingthis objective, various mass media likeracdio,

televisionand cinema are used by the advertisers.

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2. Increasing Demand for the Product: for

Another obiective of the advertisingis toincrease the demand
theproduct. Advertising helpsin creating a favourableatmosphere
for maintain or improving sales ofthe product. Bymeans ofthe
advertising prospective customers may beinduced to buy a
particular product by informing them about comparative quality
price and other attributes of the product. Thus, changingthe habits
of the consumers so as toshift from a rival product.

3.Educating the Consumers:

the
One of the basic objectives of everyadvertisingis to educate
consumer and the users about the uses and utilities of
the product.
choice.
This helps theconsumers and users in making good
 4. Building up Brand Image:
Another objective of advertising is to build up brand image and
brand loyalty towards the product. This objective is achieved
throughconstant and repeated advertising about the brand.
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5. Facing the Competition:

One ofthe basic obiectives of advertisingis to help themarketer to
face the existing competition effectively and efficiently. The
marketers informthe consumer about the price, quality and
availability of product through advertising.
6.Supplementing the Salesman:
The obiective of advertising is also to assistthe salesman's efforts in
increasingthe sales of the product. By means of educating
customers about the product, advertising reduces the work load of
thesalesmanfor sellingtheproduct.
Mathew's, Buzzell and Frank hadgiven the following
objectives of the advertising:
(a)Tomake an immediate sales.
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(b)Tobuild primary market.

(c)Tointroduce a pricedeal.
(d)Toinform about a product.
insistence.
(e)To build brand recognition or brand
awareness of a product among
(f)Tohelp salesmen by building an
retailers.
reliability or research
(g)Tocreate a reputation forservices,
strength.
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Ch)To increase market share.
i)Tomodifyexisting productappeals and buyingmotives.
()Toinform aboutthe availabilityof new products orfeaturesor
price.

(k)Toincrease thefrequency of use of a product,

OTo increase the numberor quality of retailoutlets,

(m)To build overall companyimage.

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(n)To effectimmediatebuyingaction.
(o)Toreach new areas or new segments of populationwithin
existing areas, and
(p)To develop overseas.
Types of Advertising:
Broadly speaking, advertising can be classified into two broad
categories viz. product advertising and institutional advertising

Product Advertising:
Product advertising isthat advertisingwhose main purposeis to
informand stimulate the market about the advertiser's productor
services. This advertising usually promotespecific branded
products in such a manner as to make it moredesirable in the eyes
ofprospects than competitor's brand.
Product advertising on the basis of action can be further classified
as Direct Action Advertising and Indirect Action Advertising

(a) Direct-Action Advertising-Direct-actionadvertisingare those

advertisenmentswhich makes buyer to take action immediately. For
example-Reductionin priceduringclearance sales.
 (b)Indirect-Action
tostimulate demandAdvertising -lndirect-action adyertisingis done
over a period of time and increase buyer's
1'especttowards manutacturer's brand. Such advertising is a form of
long-rangepronotion and is designed to create desiresin the
buyer's mind.
Product advertising on the basis of demand may be sub-divided into
pioneer demand advertising and selective demand advertising.
(a) Pioneer Demand Advertising is used when a product is first
introduced in the market. The main aim ofsuch advertising is to
inform about what the product is, what it does. how it is used and
from where it can be purchased. For example -advertising of motor
cars, electronic items etc.. for first time.
b Selective advertising is made to meet the selectivedenmand for a
particular brand or type of product such as Ambassador Car. It is
alsoknown as competitive advertising as it point out features and
advantages that a consumer get by using it and that may not be
available in competing brand.
Product advertisingcan be also divided on the basisof product life
Cyclestage. It can beinformative.persuasiveand reminder
advertising.
(a)Informativeadvertisingis that advertising which is done for the
promotion of the products.It seeks to develop initial demand for a
product. Theseadvertising ads are such that they appealsto the
consumer'semotions as well as their rationalmotives. These are
used at the introductionstage ofthe product life evcle.
b)Persuasive product advertising is done at growth and maturity
stagein the product life cycle. These advertisements aim at
providing competitive advantage over the rivals"_product.

(c)Reminder product advertisingaims at reminding the prospects

about the features and benefits ofthe products. Itis generally used
at thematurityas well as in decline phaseof the product litecycle. It
is also known as retentive advertising.
Functions of Advertising:
For manyfirms advertising is thedominant element of their
promotion mix. It is particularly truein the case of producers
producing convenience g0ods like-detergent, toilet soaps; soft
drinks etc. However,in recent times the use of advertising is
continuously increasing in case of shopping and speciality goods
too,as we see in case of automobiles; home appliances etc. Huge
advertising is done by the marketers to introduce a new product and
showits features tothetargetaudience.
Advertising can also be used toconvince the potential buyers that
firm'sgoods orservices are superiorto that of the competitor's
goods or services in terms of quality, quantity or price. It also
creates a brand image in the mind of the customer and make them
lovaltowardsthe firms goods or services.

Advertising generally performsthe following functions:

i.Promotion of firm's goods and services and therebyincreasing
salesofthe firm.
i.Creating awarenessin the potentialbuyer about the new product.
ii.Creatinga favourable publicimageandtherebybrand image in
themarket.
iv.Mass production facilities and thereby optimum utilization of
resource of the firm,
v.Providingsupportive roles toother promotionalmeasures.
Media of Advertising:
1.Mural Advertising:
Mural oroutdoor advertising has long life.It has a general and wide
appeal. It can attract attention of a large section of population. An
advertiser hasample scope touseskill and artinadvertising.
2. Press Advertising:
Newspapers have a general and wideappeal. Repeat advertising is
possible. Periodical change in sizeand contents is also easy.
Newspapers offer promnotionalassistance. Theyarethebest source
ofmarket information.
 However, newspapers have short span of life. We cannothave
coloured and attractive advertisements. Waste in advertisingis
considerable. Illiteracy affects its utility.
3. Film Advertising:
Ithas a wide appeal. It can overcome language barriers. Audio
visual technique has maximum impact on audience., Sound and
sightboth are employed for communicating the message.
4.Radio Advertisement:
Radio has the shortest closingtimes. Radio uses onlyan audioo
signal. Announcement can bemade very quickly, It can secure
dealer support, has a very wide appeal and suitable even for
illiterate people. Repeat message is quite common.
5. Television Advertisement:
Television uses both video and audio signals. Television has all the
advantages of radio, namely, soundand explanation, plus the
additional advantage of sight. It can appeal through ear as wellas
Cye

Products can be demonstrated with explanation. Television reaches

theaudience almost like personal face to face contact. To that extent
itis just like personal salesmanship.
6.Transit Advertising
within buses,
Itconsists of car-card advertising,which is located
subways, railways and outside displays which appear
on the front
sides and backs of buses or other publictransport and
at
transportationterminals.It is the lowest-cost
media.
7. Direct Mail:
letters,
Direct mailis any advertising sent bymail, including sales
mailis
folders,pamphlets, bookletS, catalogues and the like. Direct
desired
the most personal andselective media. It reaches only the
prospects. It has minimum waste in circulation.
Benefits of Advertising:
Advertising helps in spreading information about the advertising
firm, its products, qualities and place of availability of its products.
andsoon. It helps to create a non-personal link between the
advertiser and thereceiver of themessage.
The significance of advertising has increased in the modern era of
largescale production and tough competition in themarket.
Advertising is needed not only by themanufacturers and traders but
alsofor thecustomers and the society.
1. Benefits to Manufacturers and Traders:
It pays to advertise.

Advertising has become indispensable

for the
manufacturers and distributors because
of thefollowing
adyantages:
A business
) Advertising helpsinintroducing new products.the public
enterprise can introduceitself and its products
to
throughadvertising
stimulate them to
1) It can create new tasteamong the publicand
purchase the new product through effective advertisement.
i ) Advertising assists to increasethe sale of existing products by
entering into new markets and attracting new customers.

(iv)Advertising helps to create steady demand of the products. For

instance, a drink may be advertised during summer as aproduct
winter as an
necessary to fight tiredness caused by heat and during
essential thing to resist cold.

(v)Advertising help in meeting the forces of competition in the

marketplace. If a product is not advertised continuously, the
competitorsmay snatch its market through increased
advertisements. Therefore, in certain cases, advertisingis a
necessity to remain in the market and remind the customer as done
bysoft drink companies.

(vi)Advertising is used to increasethe goodwill of a firm by

promising improved quality to the customers
(vii)Advertisements increase themoraleofthe employees of the
firm. The salesmen feel happier because their task becomes easier if
theproduct is advertised and known to the public.
(vi)Advertisingfacilitates mass production of goods which enables
themanufacturerto achieve lwer costper unit of product.
nictribution costs are alsOlowered when the manufacturer sells thehe
facilitates direct
product directlytothe customers. Advertising Retailers are
retailers.
distribution of the product through the
and sellthe advertised products.
encouraged to purchase

2. Benefits to Customers: advantages tO customers:

Advertising offers the following
the customers to know about theexistence of
1) Advertising helps
their prices. They can choose from the variou1s
various products and
Thus, they cannot be exploited by the
brands to satisfy their wants.
sellers.
educates the people about new products and their
i) Advertising
diverse uses.
many
(ii)Advertising increased the utility of existing products for
people addsto the amount of satisfaction which they are already
enjoying
(iv)Advertising induces the manufacturers toimprove the quality of
theirproducts through research and development. This ensuress
supply of the products of better gquality to the consumers.
3.Benefits to Society:
The society at large isalso benefited because of
advertisement:
()Advertising provides employmentto persons engaged in writing.
designing and issuing advertisements. Increases employment brings
additional income with the people which stimulates more demand.
Employment is further generated to meet the increased demand
(ii) Advertising promotes the standard of living of the people by
increasingthe variety and quality in consumption as a result of
Sustained research and development activities bythe
manufacturers.
(iii) Advertising educates the people about the various uses of
different products and this increases their knowledge. Advertising
alsohelps in find customers in the international market which is
essential for earning foreign exchange.
 iv) Advertising sustains the press, and other media. It provides an
importantsource of incometothe press, radioand television
network. The customers are also benefited because they geet
newspapers and magazines at cheaper rates. The publishers of
newspapers and magazines are benetited because of increased
circulation of their publications. Lastly, advertising also encourages
Commercialart.