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Tuesday, August 18, 2009

Functions of Advertising

Advertising is not an end but a means to an end- a tool that advertisers can use to reach their goals. The functions of advertising vary depending on the advertiser and its particular objectives. The basic function of advertising is to create a positive psychological image about the product and to bring something deliberately to the notice of some one else. Advertising fulfils four basic functions in society, they are:

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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