Meaning of advertising

Advertising

When a company launches new products, it needs to inform customers about the existence of such products in the market. This is enhanced through a process known as advertising.

Advertising is the process of informing existing and potential customers about the existence of a product or service in the market.

Or

Advertising is a marketing technique intended to create or increase awareness of the public towards the existing or new products.

Besides offering information about the existence of a product or service, advertising also provides information about the following:

1. Price of the product or service
2. Quality of a product or service
3. Name and content of the products
4. What product or service offers
5. Where to obtain the product or service

Aim of advertising

Advertising is aimed at the following:

1. Higher sales - The main purpose of any business is to make profit and in general the more goods a business sells the higher its profit will be. Indeed, profit should rise at a higher rate than sales because some of the costs of production do not increase with output. In commercial terms, as sales increase, the cost per unit of production is reduced.

2. New products - These have to be brought to the attention of the public if they are to catch on. Advertising seems capable of creating a demand for products that people did not realize that they needed.

3. Branded goods - Manufacturers and retailers' branded goods are often advertised to keep the brand name in the public eye. Some producers identify their goods by a special sign or trademark and advertise on the basis of this.

4. The company image - Businesses generally want to project a favorable image of themselves to the public. They like to be known for the reliability or high quality of their products. Many advertisements are designed purely to project the desired image and do not sell goods directly.

5. Retail outlets - Some advertising is restricted to the trade press in an attempt to get more retailers to sell the product. Increasing the number of outlets in this way should result in higher sales.

6. Winning rival firms - Advertising is aimed to win over rival firms in the market.

7. Information - Many advertisements are designed to inform consumers of changes in the nature of the product. You can probably notice how many products are described as "new" or "new formula" in advertising.

8. Provide education to the public - Advertising is aimed to educate the public on the use of a new product, for example, "shake well before use" or "keep away from children."