Objectives and Functions of Advertising

Why Do Companies Spend Crores on Advertising?

Before spending even ₹1 on an advertisement, a business must ask: “What do we want this ad to achieve?”
Do we want people to know about our brand-new product? Do we want customers to switch from a rival brand to ours? Or do we simply want loyal customers not to forget us?

These goals are called Advertising Objectives, and the actual work that advertising performs to achieve them is called Advertising Functions.

1. Major Objectives of Advertising

According to marketing guru Philip Kotler, advertising objectives can be grouped into three main categories based on the stage of the product’s life cycle:

1. Informative Advertising Objectives (Introduction Stage)

Used heavily when launching a new product category or a new feature:

• Tell the market about a new product (e.g., when Jio launched free 4G internet in India).
• Explain how the product works (e.g., how to use UPI QR codes on Paytm/PhonePe).
• Inform customers about a price change or special discount offer.
• Correct false impressions or myths about a product (e.g., Maggi’s “Safe & Nutritious” ads after its relaunch).

2. Persuasive Advertising Objectives (Growth & Competitive Stage)

Used when many competitors exist and the company wants customers to choose its brand:

• Build Brand Preference (why Surf Excel is better than ordinary detergent).
• Encourage customers to switch from a rival brand (e.g., Pepsi vs Coca-Cola or Colgate vs Sensodyne).
• Change customer perception of product attributes (e.g., Cadbury Dairy Milk positioning chocolate as “Kuch Meetha Ho Jaaye” for Indian festivals instead of traditional sweets).
• Convince buyers to purchase now (limited-period Amazon Great Indian Festival ads).

3. Reminder & Reinforcement Objectives (Maturity Stage)

Used for well-established, famous brands so customers don’t forget them:

• Keep the brand top-of-mind during off-seasons (e.g., Coca-Cola or Amul topical ads).
• Remind buyers where to buy the product.
• Reinforcement Advertising: Assure existing buyers that they made the right choice (e.g., Maruti Suzuki showing happy families and high mileage).

2. Two Famous Frameworks for Advertising Objectives

In DAVV BBA exams, mentioning AIDA and DAGMAR in your answer on advertising objectives makes your answer stand out!

A. The AIDA Model (By E. St. Elmo Lewis)

Every advertisement tries to move a consumer through 4 mental stages:

1. A — Attention: Catch the viewer’s eye with a bold headline, celebrity, or music.
2. I — Interest: Hold their interest by talking about a problem they care about.
3. D — Desire: Make them want the product by showing its benefits and emotional value.
4. A — Action: Push them to buy, visit the store, or click the link.

B. The DAGMAR Approach (By Russell H. Colley, 1961)

DAGMAR stands for Defining Advertising Goals for Measured Advertising Results.

• Colley argued that sales depend on many factors (price, quality, availability), so advertising objectives should be measured by communication tasks, not just sales alone.
• Under DAGMAR, an ad moves a customer through 4 communication stages (ACCA):

💡 Example of a DAGMAR Goal: Instead of saying “Increase sales,” a specific DAGMAR objective says: “Increase brand awareness of our new herbal facewash among college students in Indore from 15% to 45% within 6 months.”

3. Functions of Advertising

Advertising performs multiple functions for businesses, consumers, and the economy. We can classify them into Primary, Secondary, Economic, and Social functions:

💡 DAVV Exam Tip

Question (10 Marks): “What are the main objectives and functions of advertising? Explain the DAGMAR approach.”

• Divide Objectives into Informative, Persuasive, and Reminder with 1 Indian brand example each.
• Draw the AIDA and DAGMAR (Awareness → Comprehension → Conviction → Action) flowcharts.
• Group Functions under neat headings: Marketing, Economic, Communication, Psychological, and Social Functions.