Meaning of Advertisement :

The dictionary meaning of advertisement is ‘to give public notice or announce publicly.’ But in business world, its meaning is very comprehensive. It is a nonpersonal form of communicating information related to promotion of an idea, presentation of goods and services, with an objective to create demand. The common public is persuaded to buy the goods and services through this effective medium of communication. It is regarded as a prominent tool of marketing.

Objectives of Advertisement :

• To increase sales : 

The first and last objective of advertising is to create a desire for the product among the consumers to buy the product. It creates awareness among potential customers regarding the products, thereby creating demand on continuous basis, which in turn, increases sales.

• Creates new customers : 

Advertising plays an important role in creating demand for existing and potential buyers. Through rigorous, wide-area campaigning undertaken for the sale of the product, it persuades the consumers to try the product and helps them in taking decision.

• Entry in new markets :

The objective of advertising is to increase demand and persuade people to use new improved products by changing their old consuming habits and interests. Consequently, the consumer base increases and it becomes possible to enter into a new market, thus increasing market share.

• To educate consumers :

Advertising provides useful information about the use, features, benefits of a product. The buyers can clear their confusion by analysing the information provided. Thus, it educates the consumers to take the most appropriate decision for buying and about functional utility of goods.

• To develop brand preference and brand loyalty : 

Well-planned advertising programmes help to convince the customers about the superiority of their product over the other competitive products. By this, advertising helps in developing brand presence and brand loyalty.

• To increase the frequency of use and to create habit of repeated purchase or repeated use of the company’s product, advertising is done by the marketeers.
• To overcome and face competition and to sustain demand by creating confidence in consumers.
• To enhance goodwill of the enterprise by promising better quality products and services.
• To reach people inaccesible to salesmen, advertising is done.