Advertising helps to raise your target demographic's awareness of issues with which they may be unfamiliar as well as educate them on the related benefits of your product or service. A popular example of this is the health care industry. If, for instance, a consumer watches a television commercial in which someone describes aches and pains that are similar to those experienced by the viewer, the ad not only identifies a probable cause but suggests a potential remedy or treatment option to discuss with her doctor.

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Advertising invites your target audience to evaluate how your product or service measures up against your competitors, says Gerard Tellis, author of "Effective Advertising: Understanding When, How, and Why Advertising Works." Demonstrations of household cleaning products are a good example of this because they provide compelling visual evidence of which product does a faster and more effective job of tackling stubborn stains. Political ads are another example of how advertising serves up side-by-side comparisons of the candidates' qualifications and voting records for readers and viewers to make informed choices at the polls.

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An ongoing advertising campaign is essential in reminding your existing customers that you're still around, say Kenneth Roman and Jane Maas, authors of "How to Advertise." In a troubled economy where so many shops, restaurants and companies are going out of business, maintaining a strong presence through regular ads, fliers, postcards, events and a dynamic website is invaluable for long-term relationships. This also serves to attract new customers who may not have been in need of your products or services when you first opened but are now pleased to have their memories jogged.