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M Com 2nd Year Advertising Sales Management Study Material Notes

M Com 2nd Year Advertising Sales Management Study Material Notes


The objective of advertising is nothing but to sell something-a product, a service or an idea. The real objective of advertising is an effective communication between producers and consumers. According to Height and Mitchell, “The purpose of advertising is to rell goods, services or ideas to a large group of prospective purchasers”. According to R. S. Davour, “Advertising aims al committing tree procedure, educating the consumers, supplementing the salesman, er ending the dealer to eliminate the competitor built above aul, ils al ik between the producer and the consumer. The following are the in objectives of  advertising :

1. Preparation of Ground for Sale of New Product. When a now product is to be introduced in the market, advertising is necessary to inform the potential consumers. It this way advertisement may be used for preparing a ground for the sale of a new product!

2. Creation of Demand. Advertisement creates demand for a product vice. Thus, it creates a favorable atmosphere for maintaining or improving sales.

3. Educate the Consumers and the Users. Advertisement educates the consumers and the users about the uses and utility of the product.

4. Building-up Brand Image and Brand Loyalty. Advertisement builds-up brand image and brand loyalty and makes is strong enough

not to change a particular brand.

5. Facing the Competition. Advertisement faces the existing competition. The producer informs the consumer about the price, quality and availability of the product.

6. Informing About the Changes to the Consumers and the Users. Advertisement informs the consumers and users about the changes as to quality, packing, design, size, brand, price, weight, packing etc.

7. Forcing Middlemen to Handle the Products. Advertisement forces the middlemen to handle a particular product or products only.

8. Neutralising Competitors Advertising Advertising neutralizes competitors’ advertising as their promotional strategy.

9. Enhancing Goodwill of the Firm. The objective of advertising is also to enhance goodwill and reputation of the firm in the minds of middlemen, consumers and the users.

10. Performing Selling Job. The objective of advertising is also to perform selling function.

11. Acquaint Buyers with New Job. Advertisement also acquaints buyers and users with new uses of a product.

12. Assisting Salesman’s Efforts. The objective of advertisement is also to assist the salesman’s efforts in increasing the sales of a product or products.

13. Reduction in Production and Distribution Costs. Advertising also assists a producer in reducing production and distribution costs.

14. Maintenance of Demand. Advertisement not only increases the demand but also maintains the demand of existing product or products.

15. Rationalization for Buying. Advertisement also provides rationalization for buying to the buyers so as to make right selection of the product needed by them. 


The utility of advertisement can broadly be divided into four parts (1) Advantages to Producers; (II) Advantages to Middlemen; (III) Advantages to Consumers; and (IV) Advantages to Society. Details in this regard are as follows: (6) Advantages to Producers

Advantages of advertisement to producers may be enumerated as follows:

1. Creation of Demand for New Products. Whenever a producer produces a new product, advertisement helps him in creating demand for his product, because it is the advertisement through which a producer

explains the merits of his products to the consumers. It is also advertisement through which a producer proves the superiority of.” products in comparison to the similar products of competitors.

2. Increase in Demand for Existing Products. Advertisement helps in increasing the demand for existing products because advertisement reminds the consumers of a product again and again.

3. Stability. Advertisement helps in stabilising the demand for a product in all the seasons and at all the times. It is only because of advertisement that people like to consume eggs, tea, coffee etc. in summer also.

4. Increase in Sales. By creating the demand for new products, increasing the demand for existing products and maintaining the demand of product in all the seasons and at all the times, advertisement helps in increasing the sales of an enterprise.

5. Increase in Profits. Increase in sales results in increase in profits also, and thus, the enterprise achieves the object of maximising profits.

6. Increase in Goodwill. Advertisement helps in increasing the goodwill of an enterprise. It increases the sales and increase in sales means the increase in number of customers which is apparently the result of increase in goodwill.

7. Advantages of Large Scale Operation. As the sales of an enterprise increase with the help of advertisement, the scale of operation of the enterprise increases and the enterprise gets all the advantages of large-scale operation.

8. Helpful in Facing Competition. Advertisement helps the producers in facing the competition successfully. It introduces their products into the market and creates the demand for these products.

9. Helpful in Getting, Efficient and Experienced Middlemen. As the advertisement creates, maintains and increases the demand of products and middlemen like to maintain the stock of running items, it helps producers in getting a team of efficient and experienced middlemen.

10. Helpful in Establishing Direct Relations between Manufacturers and Consumers 3. Manufacturers communicate their message direct to the consumers with the help of advertisement. Thus, advertisement helps in establishing direct relations between manufacturers and consumers.

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