Why do companies advertise their products?

A primary reason companies advertise products is to explain the benefits to a particular target market that has need for the product. An initial goal of product promotion is to build awareness that the product offering exists.

Advertising is a common approach to announce a new product launch. It is the only form of promotion in which the company has complete control over message development and delivery. Product advertising is also intended to induce buying behavior. The goal is to get customers to try a product and ultimately become loyal to the product. High levels of loyalty lead to greater revenue and profits.