Advertising Management

Advertising – Meaning And Functions Of Advertising

The main function of advertising is to increase the sales of the product by attracting prospective customers . Advertising creates positive attitude towards the product . Advertising persuades the audience of the usefulness of the product and makes them feel the need to have the product . Advertising also persuades them that only the advertised product would satisfy them and fulfill their wants . Effective advertising can make the prospective customer move into shop and buy the product . It not only attracts new customers but also reminds the old customers of the product and helps the firm to maintain them . The functions of advertising can be classified as follows :

Primary Functions Of Advertising

(1) Creates Demand : Advertising persuades the audience of usefulness of the product and makes them feel the need to have the product . Advertising also persuades prospective customers that only advertised product would satisfy and fulfil their wants . An effective advertisement creates demand and makes the person go to the shop and buy the product . Advertisement makes rational and emotional appeal to the audience and makes them realise the need for that product . For example , advertisement given by LIC to take insurance policy makes emotional and rational appeal and makes the customer feel that by taking LIC – policy he can secure his future and future of his family members .

(2) Announces for New Product or Service : In case of innovative products ( totally new product in the market ) , a great deal of advertising has to be done , to make people aware of the product , how it works , what are its uses and benefits to the customer , where it is available , its demonstration , etc . Similarly new brands of existing product also need a great deal of advertising .

(3) Promotes New Uses of the Product : Another way of expanding the consumer base is to promote new uses of the product e . g . Milkmaid was originally promoted as a substitute for milk . But later , it was advertised as an ingredient for making sweet – dishes and as sandwich Spread for children . Thus advertising helps to promote new uses of the product .

(4) Informs about Changes in Product , Price , Placement : If the company has made certain changes with regard to product , price , place like it has introduced new product design , model . changed its price , shifted its retail outlets to some other place or opened new outlets for sale to public , then it has to inform the public of these changes . Advertising is very helpful in informing the public about these changes .

(5) Announces Special Offer / Schemes : Whenever business unit is launching any special offer / scheme like festival discounts , festival gifts , off – season discounts , stock clearance sales , etc . then such schemes are intimated to the general public , dealers and salesmen through advertising .

(6) Reminds Users : For those products which are purchased repeatedly or frequently like soft drinks , toothpaste , shampoo , shaving blades , etc . reminder – ads are very effective in maintaining the existing customers and to remind them of name of company and brand .

Secondary Functions Of Advertising

(1) Helps to Boost the Morale of Salesmen and other Employees : When employees of the organisation watch advertisement of their own company and its product , they feel very delighted and their morale goes up . They feel that they are working in an enterprise of high reputation . Their job is not only secured but they also have bright prospects of promotion .

(2) Supports Salesmen : Advertising provides great support to salesmen . If the brand is popular , it becomes easy for the salesmen to take entry in the door of prospective customer and convince him to purchase the product . Advertising has already made the customers familiar with the product and its uses , so it becomes easy for the salesmen to convince the buyers and buyers can also rely on the statement made by salesmen of a reputed brand. Thus , salesmen can sell the products without much efforts if the product is well advertised .

(3) Reaches Customers Left by Salesmen : Some prospective customers might be left by salesmen either because they were not available at their places or they were living at very far away places which were difficult to reach or it was very costly to reach there . Advertisement in newspapers , TV . , magazines , etc . helps the firm to contact such left out customers.

(4) Helps to Procure Better Employees : Advertising helps the organisation to improve its institutional image which helps to procure talented and experienced executives , salesmen and workers , as talented employees prefer to join the reputed company .

Social Functions Of Advertising

(1) Helps to Improve Standard of Living : Advertising helps to increase standard of living of masses by providing new and improved products at reasonable rates . Advertising creates demand for new and improved products and makes the public buy them . This results in improvement in standard of living .

(2) Creates Awareness among Rural Masses : Through advertisement , persons living in remote areas , rural areas become aware of latest products and their uses . They too , start using the latest products .

(3) Creates Employment : Ad creates demand . To meet this increased demand , more industrial units are set up , This promotes industrialisation which creates employment . In addition to this many people are involved in advertising industry . Thus advertising creates employment opportunities.

(4) Educates Consumers : Certain ads are informative and educative . Such ads increase knowledge of public in general . For example , ad of water purifier educates public regarding benefits of safe drinking Water .

(5) Helps to Solve Social Problems : Social – advertising helps to solve Social problems like female foeticide , gender injustice , drug – addiction , alcoholism , dowry , illiteracy , casteism , problem of family planning , etc .

(6) creates Awareness about Dangerous Diseases : Advertising creates awareness about dangerous diseases like polio , AIDS , dengue fever , dehydration , Swine flu , etc . For example , Ad given by cancer Society of India makes the masses aware of early symptoms of cancer .

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