1) It serves as a marketing function by helping companies that provide products or services sell their products. Personal selling, sales promotions, and advertising blend together to help market the product.
2) It is educational. People learn about new products and services or improvements in existing ones through advertising.
3) It plays economic role. The ability allows new competitors to enter the business arena. Competition, in turn, encourages product improvements and can lead to lower prices. Advertising reaches a mass audience, thus greatly reducing the cost of personal selling and distribution.
4) It performs definite social function displaying the material and cultural opportunities available in a free-enterprise society; advertising helps increase productivity and raises the standard of living.
• To differentiate products from their competitors.
• To communicate product information.
• To urge product use.
• To expand product distribution.
• To increase brand preference and loyalty.
• To reduce overall sales cost.
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