Learn about the objectives of advertising:-
1. Introduce New Product 2. Creation of Demand 3. To Face the Competition 4. Creation of Goodwill 5. Communicate with the Customers
6. Neutralize Competitor’s Marketing 7. Discourage New Entrants 8. Link between Producer and Consumer 9. Overcoming Dissonance of Buyers. 10. Entering in New Geographical Area
11. Informing about Changes in Marketing Mix 12. Building Brand Preference 13. Building Goodwill 14. Supporting Salesmen 15. Reminding the Customers of the Product and Company and a Few Others.
Objectives of Advertising: Introduce New Product, Creation of Demand, To Face the Competition and a Few Others
Objectives of Advertising – Top 17 Objectives: To Educate Customers, To Face the Competition, Enhance Goodwill, Create Brand Preference and a Few Others
The main objective of advertising is to communicate about the product and service to the prospective customer. Its long term objective is to generate profit to the firm. General object of advertising is to inform the customers about the attributes and uses of the product.
The following are the major objectives of advertising:
1. It leads to Creation of demand
2. To educate customer
3. To expand the markets for new buyers.
4. To face the competition.
5. To announce a new product or service.
6. To prepare ground for new product.
7. To create or enhance good will.
8. To intimate customers about new uses of the products.
9. To induce potential customers to buy.
10. To develop servicing link between manufacturer & customers.
11. Barring new entrants.
12. To neutralise competitors advertising
13. To create brand preference
14. To announce product modification
15. To make special offers through sales promotion.
16. To announce location of dealers and retailers.
17. To pacify stock lists and dealers.
Objectives of Advertising – 8 Important Objectives: Introduce New Products, Creation of Demand, To Face the Competition, Creation of Goodwill and a Few Others
Objective # 1. Introduce New Product:
Advertisements are used for presenting a new product in the market. New product needs introduction as potential customers do not have any awareness about it. Mass media is used for promoting the product so that its knowledge reaches wide markets.
Objective # 2. Creation of Demand:
The aim of informing people about the product is to create demand for it. Advertisements often try to match the product qualities with the customer’s requirements so that they realize the need of the product. Advertisement creates a favourable climate for maintaining or improving sales. Customers are constantly reminded about the product and the brand to build up brand recognition.
Objective # 3. To Face the Competition:
In modern days advertising is undertaken not only to inform the people about a product, but also to maintain and increase the demand of the product by weaning people away from rival products in the market. Under competitive conditions, advertisement helps to build up brand image and brand loyalty. Loyal customers are the best safeguard the company can have during times of cut-throat competition.
Objective # 4. Creation of Goodwill:
Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company. This increases the market receptiveness of the company’s product and strengthens its market position.
Objective # 5. Communicate with the Customers:
Advertising is a means to communicate to the customer details like changes in prices, improvement in quality, introduction of a new product line, sales promotion schemes, etc. Regular advertising is necessary to remind the customer about the brand and ensure that the brand name remains fresh on his mind.
Objective # 6. Neutralize Competitor’s Marketing Strategies:
It is important to keep ahead of the competitors and neutralise the effects of their advertising before they are successful in pulling away the customers of the organization. Advertisements are used to create product differentiation in order to distinguish a company’s product from those of its competitor’s.
Objective # 7. Discourage New Entrants:
A flourishing market is always inviting for new entrants. But if a company adopts a policy of extensive advertising through a variety of media, it would be better equipped to face new competition. Advertising builds up a bigger market share for the company which the new entrants would find difficult to penetrate.
Objective # 8. Link between Producer and Consumer:
Advertising is the link which connects the producer and the consumer. It informs and educates the target audience about the products, its benefits, and the utilities and value it can provide to the customer. It complements other promotional tools like personal selling and sales promotion in achieving the marketing objectives of the firm.
Objectives of Advertising – Top 10 Objectives: Overcoming Dissonance of Buyers, Entering in New Geographical Area, Building Goodwill, Supporting Salesman and a Few Others
The specific objectives of advertising are as follows:
1. Overcoming Dissonance of Buyers:
At times the customers gets dissatisfaction with the product due to some complaint or test. Then the firm has to make its position clear by explaining that the basis of dissatisfaction is wrong and customers need not to worry. For instance, test report published regarding pesticides in soft-drinks badly damaged the reputation of soft-drink manufacturers.
But later, these manufacturers made it clear that the basis dissatisfaction is wrong and use of very less quantity of pesticide is not harmful for health. Therefore, through advertisement, companies made their position clear and overcame their dissonance.
2. Entering in New Geographical Area:
If the existing firm wants to enter in new geographical areas, then advertising is required to inform the prospective buyers and middlemen regarding availability of product, entry in this area, features of product and success of the product in other geographical areas. So advertising is needed to capture a new market area.
3. Informing about Changes in Marketing Mix:
In case the company has made certain changes with regard to product, price, place, like it has introduced new product design, model or opened new retail outlet, changed price, launched new sales promotion schemes, then it has to tell about these changes to the buyers. Advertising is handy to inform about these changes.
4. Building Brand Preference:
Advertising helps the manufacturers and marketers to build brand preference and brand loyalty of their products. It will aid the manufacturers to stay in the market in long-run and allow them to charge higher price for their products.
5. Building Goodwill:
Advertising helps in building corporate image and create goodwill among existing and potential customers, employees, shareholders, government, financial institutions and public at large.
6. Supporting Salesmen:
It is easier for the salesmen to sell the product that are well advertised. People respond favourably to the call of salesman in case the brand is popular. Advertising also makes the audience understand the product and its uses. Therefore, it becomes easy for the salesmen to convince the people to buy product. So, advertising renders great support to salesman.
7. Reminding the Customers of the Product and Company:
Advertisements helps in leaving the product and the company’s image in the consumer’s mind. Many customers are likely to forget the company and its products, but repeated ads on popular media help the firms to remain in touch with customers.
8. Increasing Demand:
Advertising spreads awareness about the product among the target audience grating a need for the product. Advertising also make them feel that only advertiser’s product can satisfy this need. Hence, advertising creates demand and helps in increasing the market share of advertiser’s products.
9. Selling a New Product and Building New Brands:
Advertising introduces a new product to potential customers. These potential customers are provided information regarding features, contents, quality, price and availability of the new product. Advertising aids to sell a new produced quickly, thus enabling the manufacturer to recover the costs of developing the new product. Advertising is done to build brand familiarity and brand popularity.
10. Educating the Masses:
In order to educate masses non-commercial advertisements are issued by government department and social-organisations. For instance, ads issued by health departments about pulse-polio, AIDS, dengue fever, female-foeticide etc., educate the masses about these fatal diseases/problems and suggest the ways to prevent them.
Objectives of Advertising – Preparing Ground for New Product, Creation of Demand, Facing the Competition, Creating Goodwill, Barring New Entrants and a Few Others
i. Preparing Ground for New Product:
New product needs introduction because potential customers have never used such product earlier and the advertisement prepares a ground for that new product.
ii. Creation of Demand:
The main objective of the advertisement is to create a favourable 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.
iii. Facing the Competition:
Another important objective of the advertisement is to face the competition. Under competitive conditions, advertisement helps to build up brand image and brand loyalty and when customers have developed brand loyalty, becomes difficult for the middlemen to change it.
iv. Creating or Enhancing Goodwill:
Large scale advertising is often undertaken with the objective of creating or enhancing the goodwill of the advertising company. This, in turn, increases the market receptiveness of the company’s product and helps the salesmen to win customers easily.
v. Informing the Changes to the Customers:
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.
vi. Neutralising Competitor’s Advertising:
Advertising is unavoidable to complete with or neutralise competitor’s advertising. When competitors are adopting intensive advertising as their promotional strategy, it is reasonable to follow similar practices to neutralise their effects. In such cases, it is essential for the manufacturer to create a different image of his product.
vii. 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 and for the product in which new entrants find it difficult to enter.
In short, advertising aims at benefiting the producer, educating the consumer and supplementing the salesmen. Above all it is a link between the producer and the consumer.
Objectives of Advertising – 7 Important Objectives: Introduce New Products, Help Middlemen, Demarket the Target Group, Increase Public Welfare and a Few Others
Advertising is a communication which informs, persuades and reminds. The communication is aimed at customers who are specifically identifiable. The objectives are to stimulate sales, retain loyalty to the product, generate enthusiasm and confidence, and project the image of the product and the producer.
The objectives of advertising have been noted by the different authors differently. Advertisers have no single objective. They formulate their objectives according to their functional needs. In brief, the objectives of advertising may be to introduce a new product, to sustain an established product, to help middlemen to increase the use of product, to de-market the segment, and increase the welfare of the public. It has some other objectives as well.
Advertising introduces a new product to potential customers. The prospects are given information on the attributes, qualities and prices of the product. A new product may gain sales momentum if the potential buyers are made aware of it. In many cases, the producer starts production after evaluating the results of advertisement.
New products are advertised first before production commences. Such advertising gives an edge to the new product over the existing products. Market studies reveal the desires of the people and the extent to which the new products can be sold in the market.
The advertiser analyses the popularity of the existing products to arrive at a design of the new product accordingly. He can build a more desirable product image by an advance advertising campaign.
Advertising assists in retaining the market share of the established product Brand loyalty is maintained through effective advertising. The qualities and attributes of the product and effective advertising methods persuade a large number of consumers to stay with the established product and not to shift to other products. The all-purpose activities of a product should be advertised to sustain the market for that product.
Product market is retained if the image of the producer is maintained by advertising and other marketing practices. Effective marketing strategy and advertising decisions can sustain and increase its share in the market Product life cycle is analysed before an effective advertising campaign is started.
Advertising is designed to help middlemen to achieve better performance. They are informed about the prices, qualities etc., so that they may pass on the information to customers. In this way, customers, too, are pre-informed about these qualities.
Newsletters, coupled with newspaper advertisement may give information on the names of shops and retailers where the advertised products would be available at a lower cost. The attributes of the product, its price and packaging help middlemen to enhance its sales.
Advertising increases the share of market. The uses of existing products are communicated to the prospective customers. If possible, the different uses should be demonstrated to customers through different media of advertising. The behavioural study of customers indicates to the producer how to increase the share of the product in the market. The weaknesses and problems of competitors are evaluated before the strategy of market expansion through advertisement is implemented.
Advertising is essentially meant for giving product information to the target group. If the market segment is not known, advertising in non-prospect areas will be a futile exercise. Advertising should be made only in the targeted segments. The market segments, therefore, should be analysed.
The target-segments should be approached by the advertiser. A segment study reveals the various segments and shows the marketers how to approach and influence public to purchase the advertised products. The most effective segments are approached first so that other people may be influenced by the results of the advertising in the most favourable market.
Advertising has the objective of increasing the welfare of the public. This is the inherent purpose of an advertisement. Unless public obligations are met, the advertisement would be a fraud upon the public. The moral and ethical values should be stressed in all advertisements. Advertising also informs the public how to maintain public hygiene, educates them in the conservation of energy, and makes the environment free from pollution, and so on.
Advertising has several other objectives, such as contribution to economic growth and social reforms. It promotes the marketing system, education of the people so that they might make an economical use of scarce resources and maintain the ethics of society. The government may insist on many other objectives of advertising, depending upon the socioeconomic conditions of the country, not only for business purposes, but for political, social and economic reform of the nation as well.
Objectives of Advertising – To Communicate, Introduce, Co-Ordinate, Support, Increase Sales,Face Competition,Maintain Relationship,Create Awareness and Other Objectives
1. To Communicate:
The thrust of an advertisement is to communicate the message. Such a message would be about a product or services. The manufacturer passes communication to the prospective customers about features, quality, price, seasonality, superiority, utility of his product/s. The message covered shall be such that it tries to answer the doubts arising in the minds of customers.
2. To Introduce:
Releasing a new product to a new market is not an easy task. It is crucial for producer to attract the new group of customers and also maintaining the existing ones. Advertising introduces a new product, idea, brand, quality, usefulness to visit a number of consumers.
3. To Co-Ordinate:
Promotion of sales is multi-dimensional and expects the support of various functional groups and devices. Advertising coordinates all departmental executives, marketing mix, ideas etc.
4. To Support:
Advertising supports the efforts of dealers and salesmen in their endeavours to boost the sales. A product that has been properly advertised could be easily pushed in the market. It is a pre-selling activity i.e., selling process begins with advertising and ends with salesman delivering a product. The actual usefulness and intrinsic features of a product are easily convinced by sales forces when an awareness has been created by advertising.
5. To Increase Sales:
Advertising is an instrument to maximize the sales. The quantity of sales increases when products enter in new-markets, segments, and customers and when demand is sustained and repurchased. The purchase of product should become the habit of customers. The increase in size of sales brings additional profits and returns to business firm.
6. To Face Competition:
Marketers are full of competitors. The existing product may face stringent competition by a newly introduced product. Advertising helps in retaining the loyal customers by supporting their moral buying behavior. The product with quality and modest advertisement will be able to face any challenging competition in the market place and sustain for a long-period. In some cases, advertisement campaigns are launched only for counteracting the competitors.
7. To Maintain Relationship:
Advertising aims at establishing rapport and relationship between the product and customer. It is a long standing, never ending relationship. Once the relationship is created, that creates situation for repetition and reliability for products and services.
8. To Create Awareness:
Advertisement opens avenues for new products, salesmen, promotion strategies by providing apt information about the product. The availability, price deals, special promotions, offers, for the coming products, changing versions, stockist are some factors which are brought to the notice of public. What is true and what is false about the product should be known to users. It evades wrong impressions and attracts new enquiries; retrieve the lost sales, reaching those inaccessible to the sales force.
i. To induce professional to boost sales.
ii. To pave way for easy entry of salesmen.
iii. To describe the assistance offered by concern.
iv. To spread the increasing usage of the product.
v. To minimize the costs of personal selling.
vi. To make known people about new way of life.
vii. To assist buyers in planning their purchases.
viii. To create and maintain a brand loyalty.
ix. To build a good company image.
x. To attract investors.
xi. To stabilize the firms business.
Advertising aims to create interest in the minds of public and drives to make-up mind, there by ultimately buy the product. At a time, it reaches thousands and thousands of people in shortest time and cost is minimized. In remote sense, increased sales inspire the firm to expand, to go in for large scale production and it creates employment opportunities, in addition to high amount of profits.
Objectives of Advertising – Objectives Propounded by Philip Kotler: To Inform, To Persuade and To Remind
Advertising has become a highly evolved activity involving crores of rupees. Advertising is done very scientifically using very advance methods.
The following are the Objectives of advertising:
1. To increase sales – The basic objective of advertising is to increase the sales of the product by & company. A company tries to maximize its profits through advertising.
2. To introduce a new product – Advertising is used to communicate the benefits, features, superiority of a product, before it being introduced.
3. To support sales force – Advertising of a product strengthens the efforts of the sales force because advertising would have already created familiarity of the products.
4. To reach inaccessible customers – Some customers are inaccessible through salesmanship because of their location, small numbers, scattered nature etc. Advertising is the only means through which such customers can be accessed.
5. To enter a new market segment – When a company wants to enter a new market segment, it advertises widely in the segment so that product familiarity is created.
6. To improve the sales of an entire industry – In certain cases it is not just one industrial organization that advertises but advertisement is given in order to increase the sale of the product itself to the benefit of all the industries manufacturing the product. Here the effort is to increase the consumption of the product itself, so that the consumers consume more of the product. Such advertisements are given by the associations of the industries, commonly on behalf of all the member industries.
7. To counter wrong notions – People some time develop wrong notions about the product and this will adversely affect the product. In such a situation, advertisement can be used to eradicate such wrong notions in the minds of people.
8. To create goodwill – Constant advertising supported by well-designed and acceptable products enable a company to establish strong good will.
9. To strengthen brands – Advertising can be used to strengthen brands and create a strong brand-recall. This enables a company to increase its sales of products under such brands.
10. To overcome competition – In a competitive situation, too many products chase a few customers. If a manufacturer has to sell his products in such a situation he has to widely advertise his products.
According to Philip Kotler, there are main objectives of advertising as follows:
1. To inform – About a new product, new uses, price change etc.
2. To persuade – Brand preference, switching to ones brands etc.
3. To remind – About the product, its uses, features, benefits etc.
Objectives of Advertising – With Categories of Objectives: Informative, Persuasive, Reminder and Reinforcement Advertising
An advertising goal or objective is a specific communication task and an achievement level to be accomplished with a specific audience in a specific period of time. Advertising objectives like, organizational objectives should be operational. They should provide standards with which results can be compared. Operational objectives provide criteria for decision-making, and serve as a communication tool.
Russell Colley lists 52 possible advertising objectives in his book titled Defining Advertising Goals for Measured Advertising Results, popularity known as DAGMAR in which he outlines a method for turning objectives into specific measurable goals.
Advertising objectives can be classified into four categories.
1. Informative advertising – This type of advertising aims to create awareness and information of new products or new features of existing products. Repeatedly the name of the product will be promoted. These ads include informing the market about price changes, explaining the customers how the product works, describing available services, correcting false impressions, reducing buyers’ fears, building a company image.
2. Persuasive advertising – Aims to create liking, preference, conviction, and purchase of a product or service. These types of ads will persuade the customers to purchase now, building brand preferences, encouraging switching to their brands, changing customer perceptions of product attributes. Some persuasive advertisers use comparative advertising, which makes comparison of attributes of two or more brands.
3. Reminder advertising – This type of advertising aims to stimulate repeat purchase of products and services. Reminding customers that the product may be needed in the near future, reminding customers where to buy the product, keeping the product in customers’ minds during off seasons, maintaining top-of-mind product awareness are some of the objectives of reminder advertising. For example – Pepsi and Coca-Cola ads on television are designed primarily to remind people about their brands, not to inform about the brand.
4. Reinforcement advertising – Aims to convince current purchasers that they made the right choice. These ads will reduce post purchase dissonance in the minds of customers. Hero Honda has recently issued ads in newspapers that its Hero Honda CD Dawn vehicles sold 1, 00,000 in 100 days. This will reinforce the existing owners as well as prospective customers.
Objectives of Advertising – Major Objectives: Informative, Persuade and Remind
(2) Persuade, and
Related to above major objectives there are following specific objectives:
1. To make an immediate sale.
2. To build primary demand.
3. To introduce a price deal.
4. To inform about a product availability.
5. To build brand recognition or brand insistence.
6. To help salesmen by building an awareness of product among retailers.
7. To create a reputation for service, reliability or research strength.
8. To increase market share.
9. To modify existing product appeals and buying motives.
10. To inform about a new product’s availability, features or price.
11. To increase frequency of use of a produce.
12. To increase numbers of quality of retail outlets.
13. To build over-all company image.
14. To effect immediate buying action.
15. To reach new areas or new segments of population within existing areas.
16. To develop overseas market.
Objectives of Advertising – Promote a New Product, Support the Personal Selling Programme, Enter a New Market for Attracting Customers and a Few Others
The fundamental objective of advertising is to sell something—a product, service, or an idea—but in addition to this objective, it is utilized to achieve certain other objectives. For example, United Colors of Benetton, the retail fashion chain, effectively uses advertising to reposition its stores as a part of a well-conceived promotion mix strategy.
The major objectives of advertising are listed as follows:
i. Promote a new product
ii. Support the personal selling programme
iii. Reach out to people not accessible to salesmen
iv. Enter a new market for attracting customers
v. Manage competition in the market by stimulating sales
vi. Enhance the goodwill of the retail organization
vii. Improve dealer relations, and
viii. Warn the public against imitation of the retailer’s products.
Objectives of Advertising – To Make and Immediate Sale, Build Primary Demand, Introduce a Price Deal, Build Overall Company Image and a Few Others
A crucial step in any management effort is the establishment of operational objectives. In order to determine criteria for decision-making and measurement standards for evaluating the advertising effort, management must first establish advertising objectives. But, there is a wrong feeling that the effect of advertising could be measured in terms of product sales. Reaching the sales goal alone is not an indication of advertising effectiveness. Because, many other factors influence product sales including product availability, price, etc.
It is this connection that the principle of DAGMAR becomes relevant. The DAGMAR —Defining Advertising Goals for Measured Advertising Results — approach defines an advertising goal not as a sales quota but as a specific effect on a target audience. In terms of the effect produced, an advertisement can either make the consumer aware of the existence of a product, provide the consumer with information about it, convince the consumer of the product’s advantages over competitive offerings, or actually encourage the consumer to purchase the product.
The purpose of advertising is nothing but to sell something —a product, a service or an idea. The real objective of advertising is effective communication between producers and consumers. In other words, the ultimate purpose underlying all advertising is ‘increased awareness’.
In marketing the specific objectives of advertising are as follows:
(i) To make an immediate sale.
(ii) To increase market share.
(iii) To modify existing product appeals and buying motives.
(iv) To inform about new product’s availability or features or price.
(v) To increase the frequency of use of a product.
(vi) To build primary demand.
(vii) To introduce a price deal.
(viii) To inform about a product availability.
(ix) To build brand recognition or brand insistence.
(x) To help salesmen by building an awareness of a product among retailers.
(xi) To create a reputation for service, reliability or research strength.
(xii) To increase the number or quality of retail outlets.
(xiii) To build overall company image.
(xiv) To effect immediate buying action.
(xv) To reach new areas or new segments of population within existing areas.
(xvi) To develop the overseas market.
Effective advertising management requires the establishment of goals as the first step. These goals will provide a basis for planning and evaluating advertising efforts. The objectives can either be communication goals or sales goals. In a way, both are complementary. A communication goal would be to convey information or to maintain ‘top of the mind awareness’. This is done by informing, persuading and reminding the potential customers.
Objectives of Advertising – Generating Demand, Counteracting the Competition, Creating Image and Enhancing Goodwill, and a Few Others
The objectives of advertising are often either over simplified or assumed that the purpose is ‘sell merchandise’. If the objective of advertisement is not properly conceived and the strategies are not scientifically adopted, the theme of the advertisement and its achievement cannot be gauged with certainty.
There is a well-known statement developed by John Wanamaker and Leverhulme “Half of my advertising is wasted; the trouble is I don’t know which half.” The views clearly signify that if the objective is not properly streamlined, the effectiveness cannot be measured in a defined fashion.
Advertisement should not be developed aimlessly, ‘advertising-merely-for- the-sake-of advertising’ is not the objective, reasonable sound advertising objectives shall direct the advertising effort in the proper direction. Advertising objective is inter-linked with the marketing objective. Hence the advertising programme should be generated to address the marketing theme through different tactical strategic methods adopted by advertising team. Thus advertising serves as a tool of marketing management.
The advertising objectives may differ from organisation to organisation. In case of industrial goods, consumer goods or in the service sectors, the objectives should be identified categorically. The stresses on comparative advantages of the product are common phenomenon in the competitive market.
The monopolistic product may stress on their brand image for extension of the market and for programming diversification projects. The objectives of small manufacturing firm offering a single brand in a limited territory, may differ from those of a large, diversified, multidivisional company with number of brands.
The advertising objectives should be developed by the advertising personnel in joint action with the marketing division. There should be no confrontation within the two division regarding the basic approach and the theme of objectivity. Once the formal objective outline is set, it should be on the proper blue-print for necessary approval by the top management, for the project to be undertaken as per schedule. This strategy shall help to maintain the uniformity and right direction at all levels involved in the execution process.
In order to achieve organisational goal, producer should develop the quality products, goods and services at a reasonable price to capture mass market, and to reap high level of profit. In the age of competition, without effective advertisement it is not possible to reach the mass market. Advertisement will increase the demand of the goods and services and it will lead to mass production and reducing the cost of the production per unit automatically.
Moreover the confidence of the consumer will be generated and reputation of the organisation will be enhanced. The producers shall be in a position to retain a steady market with a possibility of expansion and development, and it will facilitate standardisation and creation of brand image.
On the other hand, the sales force will feel comfortable to penetrate into the wider market with well-known products. The introduction and development of products, through regular research, will resist the downward trend of the product demand.
Advertising as an effective communication tool, helps the organisation to achieve long term and short term objectives.
The advertising effort helps the buyer-seller understanding in different ways, like:
1. Helps to introduce a new product by building brand awareness,
2. Develops brand preference by making it difficult to market the other substitutes by the competitors,
3. Acts as a reminder,
4. Notifies any change in price, model etc.,
5. Develops the rationalisation process for buying,
6. Neutralises the advertisement of the competitors,
7. Encourages and improve the morality of the dealers and sales persons,
8. Help to inform the new uses of the product.
R. H. Colley in his book ‘Defining Advertising Goals for Measured Advertising Results, 1961’ referred the DAGMAR principle, and stressed that result should not be considered only in terms of sales quota but the actual effect on the target group. The objective of the advertisement is to provide information regarding the comparative advantages, to induce the consumer to purchase the particular product.
The other objectives and effects of advertising may be stated as follows:
1. Immediate sale
2. Primary Demand Building
3. Introduction of Price Deal
4. Information of Product Availability
5. Awareness among retailers and sales person
6. Creation of reputation
7. Increasing Market Share
8. Modification of Existing Product Appeals and Buying Motives
9. Informing about New Products availability or Features or Price
10. Increasing Frequency of Use of Product.
11. Increasing Number of Units Purchased.
12. Building of Positive Business Image
13. Effecting Immediate Buying Action
14. Developing Overseas Market
15. Counteracting Competitors, and
16. Increasing Sales in Off-season.
The objectives of advertising is to appraise the target group or the selected body of people regarding the products, ideas and services, to create confidence and loyalty on the brand offered.
There is no rigid methodology of advertising. It is generally addressed to masses and should maintain the essence of individualism. Repetition process may be adopted as a reminder but the negative effect should cautiously be handled.
To attract the consumers it should be kept in mind that price advantage is not the only motivating force. Emphasis should be given to other important factors like quality, packaging, services and ego satisfaction. The objectives of advertisement should be considered with due importance for the purpose of development of image building rather than enhancement of volume of sales.
Objectives of advertising may be summarised as follows:
1. Preparing the field for the new entrants or products.
2. Generating demand.
3. Counteracting the competition.
4. Creating image and enhancing goodwill.
5. Informing the consumers about the changes.
6. Neutralising the effect of competitors’ advertising.
Objectives of Advertising
The advertising objectives should be framed considering the plan and programme of the organisation for a short-term or long-term period. The objectives should be generated keeping in view the planning process, decision making, communication process and evaluation of effectiveness of the programme.
Proper plan should be developed regarding the advertising campaign and total outlay for advertisement expenditures. Specific provisions should be made to combat any exigencies due to socio-economic fluctuations, natural uncertainties and threats of unforeseen events or competitions.
The proper functioning of the plan and programme should create an atmosphere for congenial communication platform to interact with the advertising agencies, research suppliers and other relevant bodies to penetrate the market effectively. The advertising programme should have the reasonable flexibility to redesign according to the need of the changing situation.
A commercial organisation generates profit through augmentation of sales. The effective sales is dependent on various factors like economic situation, consumers demand, market competition, product quality, price factor, advertising, sales promotion, distribution strategy etc. Hence contribution of advertising to convert the product into sales for consumer’s satisfaction is only a part of the total process.
The successful advertising can only trigger the sales and attract the target audience. The advertising objectives should be properly set within the marketing objectives in order to develop a coordinated effort to fulfil the mission of the organisation.
Advertising objectives serve as a point of reference for the purpose of the measurement of result. There are controversies regarding the nature of objectives. Some consider that the desired objectives are to capture the market share and to increase sales. Some are in favour of attaining effective communication objectives.
In competitive market, establishment of the brand image is an important aspect of the advertising process. According to R. H. Colley, as envisaged in the DAGMAR model, the advertising objectives involve a communication task which is measurable in terms of awareness, comprehension, conviction and action.
According to DAGMAR model the objective should have the following features:
1. The terms of communication should be specific and measurable.
2. The specific target audience should be addressed.
3. Should set a standard starting point and the degree of change sought, and
4. The time frame for fulfilling the objectives should be specific.
In order to attain the advertising objectives and to execute the advertising programme, a budget is to be framed considering the resources of the organisation. An advertising budget should determine and fix the allocation of expenditures on different heads related to the advertising exercise. This distribution is known as appropriation. The appropriation should be made scientifically in order to achieve the best result for the least expenditure.
Objectives of Advertising – Specific Communication to Target Audience, Builds up Selective Demand for a Brand, Creating New Customers and a Few Others
The main objectives of advertising are summarized below:
1. Specific communication to target audience – An advertising objective is a specific communication task to be accomplished with specific target audience during a specific period of time.
2. Inform consumers about a new product or product features – Advertising used to inform consumers about a new preferred feature and to build primary demand.
3. Builds up selective demand for a brand – Advertising used to build selective demand for a brand by persuading, consumers that it offers the best quality for their money.
4. Comparing products/brands with other brands – Some persuasive advertising has become comparison advertising, which a company directly or indirectly compares its brand with one or more other brands.
5. Keeps consumers thinking or reminding – Advertising keeps consumers thinking about a nature of product.
6. Increase in sales by means of demand creation – Advertising creates demands for products and services. Advertisement seeks to channelise the surplus incomes of people towards those products which are not included among the basic needs of life. Advertising create desired in the people, an ardent desire that induces purchases.
7. Creating new customers – Advertising makes new customers. Many customers of other products may shift their preferences towards products which are properly advertised.
8. Enhance product acceptance – Advertising is also used to develop a new market for the product. When a product reaches the declining stage of its life cycle in the market, it is re-introduced in the new market through product modification or improvement.
9. Improving competitive strength – In order to improve the competitive strength, advertising plays important role. It uses the modern and improved strategies by mixing the message and copy of the advertisements, than that used by competitors.
10. Holdings of the existing market – Advertising drives out rival firms entering in the new market. A monopoly firm never allows the new firm to enter into its existing market. Advertisement is the important tool used for this purpose.
11. Availability of middlemen – This also is the object of advertising that middlemen (the distributors, agents, wholesalers, etc.) are available to the firm. The firm which gives regular and effective advertisements relieves the middlemen from this activity and can increase the sales without much effort. Therefore, middlemen will be easily prepared to accept the dealership of such firms.
12. Notifies the reasons of short supply – Sometimes goods are found in short supplies in the market when the demands are high. In such a situation the firm may like to bring the fact to the knowledge of the people the reasons for such shortages. Otherwise, people may feel that the shortage is the result of artificial scarcity for increasing the price.
13. Assist the salesmen – Large-scale advertising helps the salesmen to win more customers. Advertisements supplement the efforts of the salesmen.
14. Wider publicity in remote areas – Advertisement can cover remote areas where the salespersons could not reach easily.
15. Extending invitation to subscribe in the capital – Companies which invite public subscriptions in the share capital, notify it through advertising. The achievements, future programmes, etc. of the companies also notify to the public through advertisements.
16. Educate the people – The primary object of advertising to educate the people about the availability, quality, price, uses etc. of the product. It is beneficial in moulding tastes and broadening knowledge of consumers.
17. Create brand awareness – Certain customers are quality/brand conscious. It is the advertisement that creates brand loyalty/image in the customers. Once brand image is created in the mind of customers, they will not be prepared to accept any other products of other producers.
18. Preparing ground for new product – The new product to be introduced in the market in a short while is brought to the knowledge of the prospective buyers through regular advertisements. Most of the cinema advertisements are designed to serve the purpose.
Objectives of Advertising – Informative, Persuasive, Comparison, Reminder and Reinforcement Advertising
The basic objective of advertising of a concern is to increase its sales volume and profits.
However, these can be achieved by adopting a variety of strategies, we will mention here some of principal objectives of an effective advertising campaign:
1. To increase the sales volume by multiplying product uses or increasing the unit of purchases.
2. To facilitate launching a new product or a new brand in the market.
3. To support the existing sales force of the organisation in order to make the job sales personnel less difficult and more efficient.
4. To get more access to such consumers who are otherwise inaccessible on account of topographical or transportation barriers.
5. To enter a new market segment which are hitherto untapped.
6. To better the dealer relations in order to augment the indirect distribution.
7. To augment the industry’s sale for the betterment of the entire society.
8. To eradicate the wrong consumer notions which are otherwise based on the minds of the consumers.
9. To build up goodwill by way of non-commercial advertisements without a profit motive e.g., to motivate people to contribute to the Jawaharlal Nehru Relief Fund.
10. Finally, to build up an effective brand performance for a particular product or services e.g., ‘Nirma’ Washing Powder by Nirma Chemical Works and ‘Sundrop’ brand edible oils by ITC Groups.
Again, these advertising objectives can be classified as to whether their aim is to inform, persuade or remind:
1. Informative advertising – It appears at the initial stages of a particular product category where the principal objective is to develop the primary demand of the customers.
2. Persuasive advertising – It aims to build selective demand for a particular product and generally is applicable at the competitive stage.
3. Comparison advertising – Some of these persuasive advertising can be put into the category of comparison advertising which seeks to establish the superiority of one brand through concrete evaluation with one or more other brands in the product line. This has been specifically used in case of such products as tooth-paste, automobiles and fast cooking foods.
4. Reminder advertising – It is of another type which assist to consumer to recollect the messages, ideas, etc., of a particular product. The advertisements for soft drinks e.g., Thums Up or Campa Cola comes under the purview of this category.
5. Reinforcement advertising – Which intends to assure the current purchasers that they have opted for the right product, as for instance, the advertisement of the Maruti 1000 Deluxe car.
So in brief, these are the several types of advertising which runs hand in hand with the advertising objectives. To sum up, the choice of the advertising objective should not be arbitrary rather it should be based on a thorough analysis of the present market situation.
Objectives of Advertising – 14 Most Important Objectives: To Maintain and Create Demand, Educate the Consumers and the Users and a Few Others
Mass advertising is important to inform existing customers or potential customers about the product on a large scale. The objective of advertising is to sell something, a product, a service or an idea.
According to Mitchell and Haigy, “The purpose of advertising is to sell goods, services or ideas to a large group of prospective purchasers”. Though the basic purpose of advertising is to inform the customers about the product, the advertising also has some secondary objectives to accomplish.
They are as follows:
(1) Preparation of Ground for Sale of New Product:
When a new product is to be introduced in the market, advertising is necessary. The potential consumers can be informed only by means of advertising. In this way, advertisement may be used for preparing a ground for the sale of a new product. The mass media like radio and television are used for this purpose.
(2) To Maintain and Create Demand:
Another main objective of advertisement is to create demand for a product or service. Today customer has to be reminded again and again that a particular product exists in the market. The prospective customers are induced to buy a product by informing them about the comparative quality, price and other attributes of that product. This is also important to open the new avenues of potential customers. Advertising creates a favorable atmosphere for maintaining and improving sales.
For example, the giant Hindustan Unilever have been troubled by manufacturer of Nirma Washing Powder, which provides a stiff advertising competition to their known product surf. In this Nirma – Surf advertising competitive advertising was very popular. Similar has been the case for Rin – Nirma Washing Soap. Through proper advertising approach, Nirma has been able to capture a large market.
(3) Educate the Consumers and the Users:
Another objective of the advertisement is to educate the consumers and the users about the uses and utility of the product. Unless information reaches the consumers and the users they cannot decide and make good choice.
(4) To Create Confidence in the Consumers:
Through advertising large business houses, like Tatas, Birla’s, Godrej, etc., try to project a certain image in the market. They try to create goodwill in a particular brand name, so it can gain acceptance of the customer instantly. This helps in launching a new product and capturing a minimum share at the earliest.
(5) To Develop Pre-Launching Awareness:
Advertising can also help in cases even where the product has not been launched. The knowledge about the forthcoming product or service increases its acceptance. Reliance Petrochemicals, where massive advertising campaign has been of immense value.
(6) Performing Selling Jobs:
The object of advertising is also to perform selling function. For example, in mail order business the selling function is performed by advertisers.
(7) Neutralizing Competitors’ Advertising:
Another objective of advertising is to neutralize competitors’ advertising as their promotional strategy. It is essential to follow similar practices to neutralize their efforts.
(8) To Eliminate Middlemen:
Advertising helps in the elimination of the middlemen by making the advertised brands, known to and acceptable by the general public. Advertising also serves as a check against substitution of widely advertised goods by the locally manufactured goods.
(9) To Build Fixed Clientele:
Repeated advertising helps in developing brand performance and brand royalty. Advertising assures the customers that the advertised goods they have been using are of the quality and taste they would like to have.
(10) Enhancing Goodwill of the Firm:
The objective of the advertising is also to enhance goodwill and reputation of the firm in the minds of middlemen, consumers and the users. In this context, constant and repeated advertisements are of great importance.
(11) Informing about Changes to Consumers:
Another objective of advertisement is to inform the consumers and users about the changes as to quality, packing, design, size, brand, price, weigh packing, etc.
(12) Reduction in Production and Distribution Costs:
Advertising also aims at assisting a producer in reducing production and distribution costs. Advertisements help in increasing sales and also in informing prospective customers about the product. This causes large- scale production resulting in overall reduction in the cost of production and distribution.
(13) Rationalization for Buying:
The objective of advertising is also to provide rationalization for buying to the buyers so as to make right selection of the product needed by them.
(14) Facing the Competition:
Advertisement helps to face the existing competition. The producer informs the consumer about the price, quality and availability of the product. Sometimes group advertisements are done which eliminate the competition almost completely.