Table of Contents
- Important Primary functions of Advertising
- 1. Advertisements increase sales
- 2. Advertising Persuades dealers to stock
- 3. Advertising assists dealers to liquidate stock
- 4. Advertising increases per-capita use
- 5. Advertising recognizes quality
- 6. Advertising protects manufacturers’ interests
- 7. Advertisements eliminate seasonal fluctuations
- 8. Advertising creates demand
- 9. Advertisements raises standard of living
- Important Secondary Functions of Advertising
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Important Primary functions of Advertising
Among various primary functions, the following are very important functions of advertising.
1. Advertisements increase sales
The main function of advertising is to increase the sales of the product of the company by securing greater consumption, by attracting new buyers and by introducing new uses for a commodity.
2. Advertising Persuades dealers to stock
Advertising persuades dealers to stock more advertised goods. It ensures wider distribution of goods, even to remote places. Where a product is not in demand, the advertisers directly contact their dealers to stock the goods and persuade the consumers to buy their goods through advertisements.
3. Advertising assists dealers to liquidate stock
Advertising not only assists the producer or advertiser, but also helps dealers (wholesalers and retailers) to sell the advertised goods. Thus, wholesalers and retailers are able to clear their shelves speedily resulting in higher profits. This is all possible due to effective advertising.
4. Advertising increases per-capita use
Advertising may tend to increase the per capita use of commodity by repeating the product features and its uses constantly. Advertising is effectively used to increase the per capita consumption by describing new uses of articles that may never have been thought of by the general user.
5. Advertising recognizes quality
Advertising brings goodwill for the producer. If a producer has been recognized for bringing out quality products, his new product in the same line or new model will be well received by the public.
6. Advertising protects manufacturers’ interests
The next function of advertising is secure manufacturer’s business interests. Through the advertising of trademarks or brand names, or the general appearance of the products and their package, public recognition and acceptance are secured and accordingly goodwill of the manufacturer is established over time and a kind of insurance is given. This makes the manufacturer feel more confident and be independent of wholesalers and retailers. It also protects the manufacturers from acute competition.
Competitors will find it difficult to develop the substitute for the nationally or internationally advertised products. Advertising cultivates brand and company image. It creates goodwill which is a very valuable asset. It insures the manufacturer against all business risks.
7. Advertisements eliminate seasonal fluctuations
One of the primary functions of the advertisements is to eliminate or lessen the seasonal fluctuations for the seasonal products by describing their various uses during off season. For example, by advertising, the use of refrigerators all the year round has been highlighted to people.
8. Advertising creates demand
Competitive advertising of two or more manufacturers in the same field expands market and creates more business for them. It creates demand for the product and not merely for a particular brand. For example, a lap-top computer is widely recommended and vigorously suggested through advertisements, highlighting its advantages. It ultimately results in more such computers being sold.
9. Advertisements raises standard of living
Advertising also deserves credit in raising the standard of living of the consumers by persuading them to use newer and better products at competitive rates. It is partly because of advertising, it has become possible that goods that are enjoyed by rich people once, are being enjoyed by common man now. For example — Television, which had been only a dream for a common man a few decades earlier, has now become very popular among all sections of society, which is, mainly due to advertising.
Important Secondary Functions of Advertising
In addition to primary functions of advertising discussed above, there are many other functions which have gained importance during the course of time. and such functions may be classified as Secondary functions which have been discussed below—
1. Advertising lend moral support to salesmen
Advertising helps salesmen a lot. Occasionally, a salesman feels in-secured and lacks confidence in himself, in his company’s products and in the firm he represents. On such occasions, advertisement supplies the necessary information to supplement his presentation and boosts his morale. It makes it easier for him to sell advertised goods, for part of the selling has already been done for him.
Advertisements will increase salesmen remuneration because increased sales volume will earn them a good name and increase their remuneration / incentive, etc.
2. Advertisements furnishes correct information
Advertisements provide the correct information about the product, producer, stockists and salesmen. Salesmen and dealers are benefited by the use of information given in the advertisement. Many times, such information serves as a check on erroneous and extravagant claims.
3. Advertising ensures Product improvement
Advertisements create a feeling among the executives and the administrative staff that they are responsible to the public in a peculiar way. In many ways, they become more enthusiastic when they see advertisements of their own company. They are likely to strive to improve the product further in all aspects, and give public more value for their money.
4. Advertising cultivates sense of security
The workers of an organization of well advertised goods will feel that their jobs are more secured and that their future prospects with the organization are bright as the business grows.
5. Advertisements helps to recruit Efficient Employees
Advertising makes it possible for the manufacturers to appoint well equipped employees, in terms of quantification, experience and skill. As a company gains much popularity through its advertisements and is identified as a widely known company, any eligible applicant will feel pride to apply for the job. Thus, advertising helps the advertiser to choose only the best aspirants.
To sum up, advertising aims at committing the producer for more turnover, educating the consumer, supplementing the salesmen, assisting the dealer to eliminate the competitor, and above all act as a link between the producer and the consumer.
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