I. Introduction

     Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods and services by an identified sponsor and it reflects the fact that the space or time for an advertising message generally must be bought. The nonpersonal component means that advertising includes mass media that can give a message to large groups of individuals and is generally no opportunity for instant feedback from the message receiver. Therefore, before the message is sent, the advertiser must consider how the audience will interpret and respond to it. 

     Advertising is the best-known and most widely discussed form of promotion, probably because of its asiveness. It is also a very important promotional tool, particularly for companies whose products and services are targeted at mass consumer markets. 

     There are two schools of thought on. the role of advertising in the economy. First, advertising is equated with information and second, with market power.

     Proponents of the information theory assert thag advertising provides consumers with information which may increase price sensitivity, lower prices and decrease monopoly power. Advertising communicates the existence of a product and it's storng points that can tell the consumer where he can get access to the product, not only where a particular brand may be found but where general kinds odpf merchandise are available as well and where the buyer can obtained the product. 

     The market power model states that advertising changes consumer tastes and establishes brand loyalties among buyers of products which are advertised. As consumers become more loyal to specific brands, they become less sensitive to price. The assumption here is that advertising increases the observed difference of products which are physically the same. Advertising can differentiate products, increase brand loyalty and heighten price elasticity of demand through the way of introducing new merits into the choice desicion, influencing the way consumers judge the products effectiveness based on given merits and influencing the association of product merits regarded as "ideal".

     Contraty to what many people believe, advertising does not simply inform people about products but also promotes them. Advertising in newspaper, maganizes, radio, and television are not really designed to make sale but to familiarize the potential buyers with certain products that are designed to build demand for these products by creating interest and desire, to answer inquiries, to create superiority and remind people of their availability. Although the ultimate objective of advertising is to help sell something, mkst objectives can classified into one of three categories; namely, sales, market share and communication goals. Sales objectives obtain immediate purchasing action boost product sales, and widen industry sales. Market Share Objectives maintain patronage and prevent substitution. And lastly, Communication Objectives helps in the introduction of new products to distinct target segements, smooth the way for salesman by acquainting the market with the company's name and attributes of the company products; reach people in areas too remote for salesmen to cover, develop dealer relations, enter a new geographic market, build company goodwill by giving public service and telling about the organization behind the product, aid the buyer in making his buying decision and establish brand superiority.

     There are two types of advertising, product advertising and institutional advertising.

     Product Advertising is an advertisement promoting a specific product that may be aimed at the end user or at potential representatives and distributors. Product advertising may be further classified as pioneering, competitive, and reminder advertising. And Institutional Advertising is an advertisement designed to promote an organizational image, stimulate generic demand for a product, or build goodwill for an industry. It tries to develop goodwill for a company rather than to sell a specific product. Its objective is to improve the advertiser's image, reputation, and relations with the various groups the company deals with. This includes not only end-users and distributors, but also suppliers, shareholders, employees, and the general public. Institutional advertising focuses on the name and prestige of a company and sometimes used by large companies with several divisions to link the divisions in customers' minds. It is also used to link a company’s other products to the reputation of a market-leading product.