Advertising and Functions and Objectives Term Paper

Excerpt from Term Paper :

The same can also be said of corporate organisation that has in their possession accumulated research capacity which enables it to deliver unique products and services from its competitors.

1.2.7 To increase market share.

Advertising can also be used to increase the market share of an organisation resulting from the acceptance of the products but the consumer and subsequent recognition of the brand.


Advertising as a promotional mix element is expected to play some functions. Organisations usually employ advertisement to play the following functions.

1.3.1 To distinguish products from their competitors

Advertising has been found to be a useful promotional tool when it comes to distinguishing between the products of an organisation from their competitors. There are so many products in the market. Sometime the same types of products are competing in one market. It is even the case that other manufacture may imitate the products of another organisation though with an amount of difference in order to outwit the law that protects copyright. But these seemingly differences may be very difficult to detect especially when the products in question are convenience good. An advertisement if well packaged can be a means to communicating product differences of original products from imitations or from that of other competitors.

1.3.2 To communicate product information

Promotional tools are intended to inform, educate and to remind consumers about a product or service and its functionality. Advertisement can be used to play the above functions in an efficient and an effective way. In other words through advertisement one company can send its product information to all of the target audiences within the shortest possible time. This function also become very crucial when organisation will have to put up a counter information in order to dispel some doubts concerning its products usually engineered by consumers or other unscrupulous opportunists

1.3.3 To urge product use

A good promotional tool should have the ability to convince the consumer about the efficacy of the product or service or idea. Corporate organisations usually use advertisement to create the urge within consumers for a product. This explains why consumers are prepared to buy goods which they have not budget for due to an inner urge induced by good advertisement

1.3.4 To expand product distribution

When the market demand of a particular product increases, the retailer and distributor are engaged in the sale of that product. The organisation can adopt the use advertisement to consolidate their expansion programme.

1.3.5 To increase brand preference

There are various products with various brands. Consumers can be supported to make good preferences with the aid of advertisement. In this way advertisement serves to highlight the advantages and disadvantages among brands which provides enough information for the consumer to make a choice between brands

1.3.6 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 price will decrease.


There are many types of advertisement depending on the kind of classification system that is used. The following are the generally used to classify thereby dictating the typology of adverts. Function, Region, Target Market, Company demand, desired response and Media

2.1 Types of Advertisement based on function

Informative advertising This type of advertising informs the customers about the products, services, or ideas of the firm or organization. Examples: Fidany is offering 10 kg sugar for every. $2,000/- purchase everyday.

Persuasive advertising: This type of advertising persuades or motivates the prospective buyers to take quick actions to buy the products or services of the firm. Example: "Buy one, get one free."

Reminder advertising This genre of advertising reminds the existing customers to become medium or heavy users of the products or services of the firm that have been purchased by them at least once. This type of advertising exercise helps in keeping the brand name and uses of the products in the minds of the existing customers.

Negative advertising This type of advertising dissuades target audience from purchasing such products and services which would not only harm them but also the society in general. Examples: Advertisements of various civic authorities against alcohol, tobacco, and narcotics.

2.2 Types of Advertisement based on geographical location

Global advertising It is executed by a firm in its global market niches. Reputed global magazines like Time, Far Eastern Economic Review, Span, Fortune, Futurist, and Popular Science. Cable TV channels are also used to advertise the products through out target='_blank' href=''>world. Supermodels and cinema stars are used to promote high-end products Examples: Sony, Philips, Pepsi, Coca Cola, etc.

National advertising It is executed by a firm at the national level. It is done to increase the demand of its products and services throughout the country. Examples: BPL (Believe in the best). Whirlpool Refrigerator (Fast Forward Ice Simple) etc.

Regional advertising If the manufacturer confines his advertising to a single region of the country, its promotional exercise is called Regional Advertising. This can be done by the manufacturer, wholesaler, or retailer of the firm. Examples: Advertisements of regional newspapers covering those states or districts where these newspapers are circulated. Eg. The Assam Tribune (only for the NE region) etc.

Local advertising When advertising is done only for one area or city, it is called Local Advertising. Some professionals also call it Retail Advertising. It is sometime done by the retailer to persuade the customer to come to his store regularly and not for any particular brand. Examples: Advertisements of Ooo la, Gupshup (Local FM channels) etc.

Types of Advertising based on targeted markets

Depending upon the types of people who would receive the messages of advertisements, we can classify advertising into four subcategories.

Consumer product advertising This is done to impress the ultimate consumer. An ultimate consumer is a person who buys the product or service for his personal use. This type of advertising is done by the manufacturer or dealer of the product or service. Examples: Advertisements of Intel, Kuttons (shirt), Lakme (cosmetics) etc.

Industrial product advertising: This is also called Business-to-Business Advertising. This is done by the industrial manufacturer or his distributor and is so designed that it increases the demand of industrial product or services manufactured by the manufacturer. It is directed towards the industrial customer.

Trade advertising This is done by the manufacturer to persuade wholesalers and retailers to sell his goods. Different media are chosen by each manufacturer according to his product type, nature of distribution channel, and resources at his command. Hence, it is designed for those wholesalers and retailers who can promote and sell the product.

Professional advertising This is executed by manufacturers and distributors to influence the professionals of a particular trade or business stream. These professionals recommend or prescribe the products of these manufacturers to the ultimate buyer. Manufacturers of these products try to reach these professionals under well-prepared programmes. Doctors, engineers, teachers, purchase professionals, civil contractors architects are the prime targets of such manufacturers.

Financial advertising Banks, financial institutions, and corporate firms issue advertisements to collect funds from markets. They publish prospectuses and application forms and place them at those points where the prospective investors can easily spot them.

2.3 Types of Advertisement based on company demand

There are two types of demand, as follows:-

(A) Market Demand: Advertising is the total volume that would be bought by a defined customer group, in a defined geographical area, in a defined time period, in a defined marketing environment under a defined marketing programme.

(B) Company Demand: It is the share of the company in the market demand. Accordingly, there are two types of advertising, as follows.

Primary demand advertising It is also called Generic Advertising. This category of advertising is designed to increase the primary demand. This is done by trade associations or groups in the industry. Primary advertising is done by many companies at the same time, but there is no competition. The idea is to generate a continual demand for the product.

Selective demand advertising This is done by a company or dealer to increase the company demand. The company would advertise its own brand only. The retailer can also advertise a particular brand. Examples: Titan wrist watch, Hero Honda bike, Sony television etc.

2.4 Other forms of Advertisement

Surrogate Advertising- Advertising Indirectly

Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to health are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.

Public Service Advertising -- Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an effective communication medium…

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