Meaning of Advertising
Advertising is a means of creating awareness and promoting a product or service in the market. It is a paid form of communication to inform the public about an idea, goods or service.
Advertising is a market communication intended to influence people’s actions and persuades them to buy or try the product. This is one of the effective promotional tool of an organization for promoting its product among the target audience. It spreads the promotional message containing full details about the product among the customers.
Advertising is a one-way communication by which organizations communicates to people by paying charges to advertising company. Advertising is of different kinds depending upon the type of medium used for communication such as print advertising, social advertising, outside advertising, broadcasting advertising, etc. There are three main motives of advertising: informing potential customers about brand, persuading people for buying brand products and reminding customers time to time about brand message and vision.
Aims of Advertising
- Product Introduction: Advertising introduces a new product to peoples in the market. It explains clearly the features and uses of the new product launched by the company.
- Creating Awareness: Advertising is the medium through which business informs about its products or services to the wider market. It creates wide awareness regarding the company products among the public.
- Product Differentiation: Product differentiation is another important role played by advertising. It helps the business in differentiating their products from other products by properly explaining product features and advantages to customers.
- Increasing Sales: Advertising helps in raising the sales volume of business organizations. It spread product information among a large number of peoples and persuades them for purchasing it.
- Overcome Competition: Advertising assists business organizations in facing strong market competition. It enables in providing detailed information regarding products and differentiates it from other competitor’s products. It is a means through which business is able to attract more and more customers.
- Enhances Goodwill: Advertising has an efficient role in improving the goodwill and reputation of the business in the market. Repeated advertising shows the company’s presence in the market and promotes the company’s quality products. It builds a better image of the brand in the mind of customers.
- Educating Customers: Advertising is the medium through which companies communicate their product details among customers. They inform customers about the uses and utility of products through advertisement.
Objectives of Advertising
- Promotes Products: Advertising is responsible for promoting the company’s product among large peoples in the market. It is one that informs about the latest arrivals to customers and communicates all relevant information regarding products or services.
- Creates Demand: Advertising creates a favorable environment for increasing demand. It informs more and more customers about products and persuades them to buy by explaining product features and advantages to them.
- Building Brand Image: It has an efficient role in building a good image and reputation of the brand. Advertising introduces manufacturers and its product in a better way to customers. It explains the product quality and develops a better image in the minds of people.
- Stabilizing Sales Volume: Advertising helps in stabilizing the sales volumes for business. It helps in retaining more and more customers for a longer period and develops loyal customers.
- Reduces Cost: Advertising reduces the cost of the product by expanding the scale of production. It raises the production level of business by increasing its demand which reduces the per-unit cost of products.
- Higher Sales and Profit: It focuses on boosting the sales volume and profit level of organizations. It attracts more and more peoples to company products and persuades them to buy or try it.
- Expands Market: Advertising expands the market opportunities for business by creating wide awareness in the market. It approaches and informs a large number of people in the market about products or services offered by the business.