Business Studies Ch-15 Advertising: Meaning, Objectives and Definition of Advertising

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If we want to start a small business in your locality. We have sufficient space and required funds and skill to run it. But, how will customers come to know about our business? Unless people know about it who is going to come to our business? For able to think what we should be doing to make people aware that there is a business? Actually, if the quality of goods and services of the business is good, it can attract some people. But we must also take some measures on a continuous basis to make people aware about the location of our business, the quality and variety of goods available there, so that we can get customers regularly. In fact, every businessman involves in this activity of making people aware about his/her products and services so as to increase his sales.

Meaning of Advertising

In a newspaper we not only read news on current affairs, sports, etc., but we also come across several information or message about some products or services like air conditioners, cycles, hair oils, transporters, builders, etc. we also come across such information in journals, magazines, roadside hoardings, radio, television, etc. This information makes you aware about the products or services in terms of their availability, price and features. There can be many such examples of different nature, like a builder selling flats on instalment basis, a shopkeeper giving discounts, a new product being launched by a manufacturer, so on and so forth. It is obvious that the very purpose of giving such information is to make the customers aware about any product or service and induce them to buy it. Therefore, it is always the manufacturer, the trader or the service provider who wants to give such information to attract customers for promoting his sales. This entire promotional activity is called advertising, where the manufacturer or the trader or the service provider is called a sponsor or advertiser; the message or the information supplied is called advertisement and the medium through which such information is supplied like journal, magazines, hoardings, television etc. are called the media of advertising.


After studying this lesson, you will be able to:

Objectives of Advertising

Objectives of Advertising

Definition of Advertising

The American Marketing Association defines advertising as “Any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” Advertising is non-personal as it is not directed to any single individual. Secondly, the sponsor i.e. the manufacturer or producer is identified as his name and address is always contained in an advertisement and he also bears all the cost involved in the process. Thirdly, the producer can also promote an idea regarding quality, design, packing and pricing, etc. of any product or service. Thus, we can say, advertising consists of all activities involved in presenting a sponsored message regarding a product, service or an idea.

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