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Advertising and Its Various Functions in Business

Aug 6, 2008
Advertising is a crucial part of any business, and is composed of several activities that help promote a product or service. Advertising makes use of oral or visual materials that address the public and try to influence them on their buying decisions.

More often than not, advertising generally involves an element of cost, although it is possible to do it for free if you know how to go about it. Free advertising is easier to get with an online business than a traditional offsite concern. Generally, however, advertisers will pay publishers or media and broadcasting companies to provide the advertising platform of a newspaper, radio or television.

What is Advertising

1. Advertising consists of written and oral messages that are directed to a target audience.

2. Advertising persuades the public to purchase a certain product or service.

3. Each advertisement is related to a certain advertiser who is selling the product or service involved.

4. Advertising requires the advertiser to pay the publisher in return for the advertisement.

In summary, advertising is any paid form or message that presents goods or services of a certain advertiser or sponsor, and should present the product in such a way as to persuade the reader or listener to purchase the product.

Objectives of Advertising

Its objective is to stimulate sales, create customer retention and increase cash flow. However it also be intended to brand a product, since branding can do more for sales than simply advertising it. When one thinks of specific items, they often think of a brand name rather than the product itself.

Hence, vacuum cleaners became so connected to the brand name Hoover, that it became synonymous for a vacuum cleaner. It even entered the English vocabulary in the sense of 'hoovering up' being given the meaning of clearing something away.

The functions of Advertising for a company can be classified into two groups. These are known as the primary and the secondary functions.

Primary Objectives

1. Advertising helps increase sales of the service or product because it helps promote it to a bigger market. People who don't previously know about that product or service become aware of it because of the advertisement about it.

2. Sales persuasion is frequently used to help buyers decide on their next purchase.

3. Advertising also helps dealers or franchisees to sell the product or service being featured.

4. Advertisement makes it easy for a company to adjust to a new product or service. People are most likely to welcome a new item or service if they have already seen it in an advertisement. Many companies commence the branding of a product before it has hit the shelves.

5. Buyers tend have a better view of a well advertised product or service as compared to those that don't have any advertisements or are poorly advertised. People tend to purchase products they are familiar with, and a well thought out advertising campaign can achieve that.

6. Advertising leads to branding and promotes brand loyalty as well. Once a user has become satisfied with a specific brand, they tend to stay with it.

7. Products and services that are advertised are deemed as better and higher quality products or services by the public. Many take the erroneous view that if it is well advertised then it must be good.

Secondary Functions

1. To encourage salesmen and provide that feeling of support especially when they are dealing with hard to get customers. Sales staff find their job easier with a good advertising campaign behind them.

2. When a company makes use of advertising, it helps employees feel more secure in their jobs. If a company can pay a substantial amount just for advertising purposes, then the workers will feel that it's a good company to work for and remain loyal with.

3. Advertising helps the company to attract better or more qualified employees.

So, advertising has many facets and objectives, and its functions are more than just letting the world know of the existence of a specific product.
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