Functions and benefits of advertising

From the practical point of view, the fundamental function of advertising is to stimulate the sale of goods and services. Increased sales may be accomplished either by selling to more people or by selling in greater quantity to people who are already customers. The following analysis outlines the ways in which these two ends are achieved.

Increased sales may be accomplished by selling to more people by securing new users. This is done by opening up new markets or by plucking customers from competitors. Advertiser may set out to reach undeveloped markets, to appeal to the younger generation, or to overcome prejudices which have stood in the way of further development.

Instead of trying to attract new users, the advertiser may find it possible to stimulate sale by encouraging present customers to increase consumption. A common device is to encourage more frequent use. The introduction of radio sets for use in automobiles has expanded the market for them. Similarly, products which formerly were sold rather generally are now promoted for use on special occasions. The exploitation of shirts and ties as special gifts for father’s day is an illustration of this type of advertising.