CRITICISM OF ADVERTISING:

IS ADVERTISING A SOCIAL WASTE?

ADDS TO COST
The firms spend a huge amount of money on advertisement and these expenses are added to the cost and consumer has to pay a higher price for the product or service. But with advertisements the demand for product increases, which brings increase in sales and this leads to increase in production. With increase in production, the companies can get economies of scale. As a result, the per unit cost of production comes down as the total cost is divided by large number of units. Thus, the expenditure on advertisement adds to the total cost but the per unit cost comes down which in fact lessens the burden of consumers rather than adding to it.

WASTEFUL CONSUMPTION
Advertising promotes materialism. It breeds discontent among people as they come to know about new products and feel dissatisfied with their present state of affairs. It induces the customers to buy more and more products which they dont need or cannot afford it. Hence multiplies the needs of the people and encourages unhealthy consumption. This criticism is not entirely true. The advertisements only inform the customers, the final choice of buying or not lies with the customers only. Consumers, being rational human beings, can judge their needs accordingly.

MISLEADS THE CONSUMER

It is said that advertising is often deceptive and misrepresents facts to the consumer. Exaggerated or tall claims and flowery language are used to cheat innocent consumers. They are induced to or defrauded to buy goods of doubtful value.
We cannot deny that some firms indulge in false and misleading advertising but just because a few people misuse it doesnt mean that advertising itself is bad and unnecessary.

CONFUSES THE BUYERS

Another criticism is that so many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. However consumers make the decisions for purchase of products on factors such as price, style, size, quality etc. Thus by analysing the information provided on the advertisements and sources can help the buyers to select the most suitable product and brand for them.

ENCOURAGES SALE OF INFERIOR GOODS

Advertisements show all types of products irrespective of their quality. With the help of advertising anything can be sold in the market. The objection to the sale of inferior goods is not correct because what is inferior and what is superior depends upon the economic status and preference. Everyone cannot afford to buy superior quality expensive products.

CREATES MONOPOLY
Advertising creates brand loyalty and restricts free competition by creating barriers to entry. Large firms which can afford huge amount on advertising eliminate small firms by creating brand monopoly.
But advertising creates only a temporary brand monopoly as after sometime other brands offer competition.

SOME ADVERTISEMENTS ARE IN BA D TASTE

Sometimes advertisements show something which is not approved by some people like advertisements showing women running after a man because he is wearing a particular suit or using a particular perfume are certainly not good
However good or bad taste differs from person to person. It is a matter of personal opinion as to what was accepted by yesterdays generation is accepted by todays generation and they may not find it of bad taste

ADVERTISING CANNOT BE REGARDED AS A SOCIAL WASTE

Despite the limitations, advertising is an essential marketing function in modern business. It becomes wasteful and objectionable only when it is used unscientifically and dishonestly.

FUNCTIONS
It creates demand for the product of the company It helps in creating a good image of the firm Facilitates large scale of production Facilitates reduction in cost of production Informs customers about the new products and their uses.

CONSUMERS VIEW POINT ABOUT ADVERTISING

(IN PERCENTAGE)

GLOBAL

INDIA

Advertising stimulates competition, which Agree leads to better products and lower prices Disagree By providing information, advertising Agree allows us to make better consumer choices Disagree Advertising contributes to the growth of Agree the economy Disagree

58 27 67 27 72 20

81 17 86 12 77 18

PREPARED BY: NITIN