Functions of Advertising

Following are the basic functions of advertising:

1. Preparing Ground for New Product

New product needs introduction because potential customers have never used such product earlier and the advertisement prepare a ground for that new product.


2. To distinguish product from competitors’ products

There are so many products of same category in the market and they compete with each other, advertising performs the function of distinguishing advertiser’s product from competitors.

3. Creation of Demand

The main objective of the advertisement is to create a favorable climate for maintaining of improving sales. Customers are to be reminded about the product and the brand. It may induce new customers to buy the product by informing them its qualities since it is possible that some of the customers may change their brands.

4. To communicate product information

Product related information required to be communicated to the targeted customers, and advertisement performs this function. Whenever changes are made in the prices, channels of distribution or in the product by way of any improvement in quality, size, weight, brand, packing, etc., they must be informed to the public by the producer through advertisement.

5. To expand product distribution

When the market demand of a particular product increases, the number of retailer and distributor involved in sale of that product also increases, hence product distribution get expanded.

6. To increase brand preference

There are various products of different bands are available, the brand which is effectively and frequently advertised is preferred most.

7. To reduce overall sale cost

Advertising increases the primary demand in the market. When demand is there and the product is available, automatically the overall cost will decrease, simultaneously the cost of sales like distribution cost, promotional cost also gets decreased.

8. Barring New Entrants

From the advertiser’s point of view, a strongly built image through long advertising helps to keep new entrants away. The advertisement builds up a certain monopoly are for the product in which new entrants find it difficult to enter.


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