Types of Advertising

Business studies study module
  • Product advertising: – this is a form of advertisement meant to promote a given product or a particular brand of product
  • Institutional advertising: – this is a form of advertisement meant to improve the image of the institution or organization and not a particular product. It is meant to create confidence in the customers about the institution
  • Primary demand advertising: – a form of advertisement meant to a new product that has been introduced in the market for the first time. It is mainly to create awareness of the existence of that particular product
  • Celebrity advertising: – a form of advertisement where a famous/popular person is used to promote a particular product. It is meant to convince those who identify themselves with that personality to buy the product
  • Informative advertising: – a form of advertisement meant to give the customer more information about the product to enable them make an informed decision
  • Competitive/persuasive advertising: – a form of advertisement carried out with organizations producing similar product to persuade the customers to buy their products ahead of their competitors
  • Corrective advertising: – a form of advertising meant to correct a misleading information that may have been given out about the product
  • Reminder advertising: – a form of advertising meant to remind the customers that the product still exists in the market and is still capable of satisfying their needs.

Advantages/Importance of advertising to the business

  • It maintain the sales of an already existing product
  • It create awareness in the customers about a new product in the market
  • It informs the customers about the changes that may have been made in the product
  • It helps in building image or reputation of the selling organization
  • It may increase the volume of the existing sales of a product
  • It reaches peoples who may have not been reached the sales person
  • It complements the effort of the sales person to enable them achieve their sales objectives
  • It clears the customers misconception and prejudice about the product
  • It opens up new markets for the products.

Disadvantages of advertising to the business

  • It may be costly to the business in terms of money and other resources
  • It leads to increase in cost of production if at all it has to be done frequently
  • The cost of the advertisement will always reduce the profit margin of the business
  • Poorly planned advertisement may negatively affect the business
  • Misleading advertisement may reduce the level of business operation

Advantages of advertising to the customer

  • They educate them on the usage of the product
  • They inform them on the products availability
  • They guide them on where to get the product
  • The outlines all the features about the product including prices to the customer
  • Competitive advertisement may lead to improved quality of goods to benefit the customer
  • Information on different prices through competitive advertisement makes the customer to benefit from the reduced prices

Disadvantages of advertising to the consumer

  • The advertisement may not disclose the side effect of the product
  • The advertising cost may be passed to the consumers through increased price
  • Some advertisement may persuade customers to buy what they do not require leading to impulse buying
  • Some customers may buy substandard goods due to misleading advertisement



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