• It is a non-personal form of presentation as there is no face-to-face direct contact with the customers.
• It is a paid form of communication as the advertiser has to pay for the space or time hired by him for advertising.
• It is done by identified sponsors i.e. the public is informed about the producer or the firm who is advertising its product.

A firm undertakes advertising with the following basic objectives:-

• To inform prospective buyers about the availability of a new product or service in the market.
• To persuade people to buy the product and thus create demand and expand market for it.
• To maintain the sales and market share in the face of intense competition. It also helps in retaining the product in the customer's mind.
• To reach people who are inaccessible by other means of promotion.
• To educate customers about a particular product by explaining its various features and uses.
• To help create and enhance goodwill of a company.

The main types of advertising are :-

• Product advertising :- is designed to improve the sales of new or existing products.
• Institutional advertising :- is aimed at improving the reputation, image or goodwill of the enterprise.
• Constructive advertising :- is aimed at stimulating demand, introducing new products, attracting new customers and encouraging dealers' interest in the product. It includes both product advertising and institutional advertising.
• Competitive advertising :- is designed to convince the consumers that the advertised product is superior to products of similar type. Also called combative advertising, its purpose is to fight competition in the market.
• Destructive advertising :- is negative in nature and its purpose is to spoil the image and goodwill of other businessmen.

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