• Meaning of Advertisement : 

Advertisement is a non-personal presentation and promotion of ideas, goods and services of an identified sponsor. It is regarded as a prominent tool of marketing.

Definition of Advertisement : 

According to American Marketing Association, “Advertising means any paid non personal presentation and promotion of ideas, goods and services by an identified sponsor.”

According to Boyard O’ Wheeler : 

“Advertising is non-personal presentation of ideas, goods or services for the purpose of inducing people.”

Role of Advertisement in Growth and Expansion of Business

• Helpful in facing competition : 

Advertisement helps in fighting the cut-throat competition prevailing in the market. Because of the advertisement only, a product exists and prevails in the market.

• Information about new products : 

Advertising is very helpful in launching a new product and making it popular in the market. If the marketeer wants to introduce his new product for a geographically-wide segment, it becomes essential for him to use aggressive and continuous advertising campaign.

• To create demand : 

Advertisement is aimed at stimulating demand by making people aware about new products and new uses of an existing product. It attracts attention, creates interest and by influencing the buyer’s behaviour, it stimulates demand.

• To discover prospective buyers : 

In today’s large-scale production of a variety of goods, this is through advertisement only that new customers can be persuaded to give boost to the sales of a company’s products.

• To educate the consumer : 

In the market, so many products are being advertised, which make similar claims. This confuses the buyer as to which one is true and which one should be relied upon. All such information is communicated by advertising only, on the basis of which, a customer takes decision to buy and how much quantity to buy to avail maximum benefit.

• To support salesmen : 

Advertisement creates awareness about the merits of advertised products. By describing the unique features and uses of products, repeated buying is encouraged. Advertised goods enjoy a ready market and little sales effort is required to sell them. Advertising makes the process of selling easier.