'Expenditure on advertising is a social waste'. Do you agree? Discuss.
'Expenditure on advertising is a social waste'. Do you agree? Discuss.
Though advertising is the most frequently medium of promotion, it attracts a lot of criticism as social waste, multiplying needs of consumers, developing materialism, etc. But the proponents discourage such opinions. Thus, it is important to examine these criticisms and see how far they are true. It is discussed in the points below :
(i) Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of a product, which passes on to the buyers in the form of high price. However, on the other hand, proponents claim that advertising helps to increase the demand of the product.
An increase in production leads to large-scale production which ultimately helps in reducing cost due to economies of scale and thus, the price of the product.
(ii) Undermines social values: Advertising causes discontentment among the customers and promote materialism, as they come to know about newer and better products available in the market.
But, the objections are not entirely true because advertisements help the buyers by informing them about the new products over the existing ones. If they are not informed, they may be using inefficient products.
(iii) Confuses the buyers: The opponents say that so many advertisements make similar claims and the buyer gets confused as to which one is true and can be relied upon. It may create a state of confusion as to which product he should buy in the market.
However, the criticisms are not true as we know that consumers are rational human beings, who can take their decisions considering various aspects of a product. He can use his wisdom along with information provided by advertisements to make the right choice of purchase.
(iv) Encourages sale of inferior goods: Opponents of advertising claim that it does not distinguish between superior and inferior goods and persuade people to purchase even the inferior goods.
However, we also know that no good is superior or inferior. The level of quality depends on the economic status of the target customer. Advertisements promote all goods, customers may pick them according to their requirements.
(v) Some advertisements are in bad taste: Some advertisements are in bad taste and show something which is not approved by society. They may show something objectionable and may cause distortion of certain relationships. Definitely, advertisements should avoid the use of objectionable words, graphics, photos, etc, which may have a bad effect on society.
Though advertising is the most frequently medium of promotion, it attracts a lot of criticism as social waste, multiplying needs of consumers, developing materialism, etc. But the proponents discourage such opinions. Thus, it is important to examine these criticisms and see how far they are true. It is discussed in the points below :
(i) Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to the cost of a product, which passes on to the buyers in the form of high price. However, on the other hand, proponents claim that advertising helps to increase the demand of the product.
An increase in production leads to large-scale production which ultimately helps in reducing cost due to economies of scale and thus, the price of the product.
(ii) Undermines social values: Advertising causes discontentment among the customers and promote materialism, as they come to know about newer and better products available in the market.
But, the objections are not entirely true because advertisements help the buyers by informing them about the new products over the existing ones. If they are not informed, they may be using inefficient products.
(iii) Confuses the buyers: The opponents say that so many advertisements make similar claims and the buyer gets confused as to which one is true and can be relied upon. It may create a state of confusion as to which product he should buy in the market.
However, the criticisms are not true as we know that consumers are rational human beings, who can take their decisions considering various aspects of a product. He can use his wisdom along with information provided by advertisements to make the right choice of purchase.
(iv) Encourages sale of inferior goods: Opponents of advertising claim that it does not distinguish between superior and inferior goods and persuade people to purchase even the inferior goods.
However, we also know that no good is superior or inferior. The level of quality depends on the economic status of the target customer. Advertisements promote all goods, customers may pick them according to their requirements.
(v) Some advertisements are in bad taste: Some advertisements are in bad taste and show something which is not approved by society. They may show something objectionable and may cause distortion of certain relationships. Definitely, advertisements should avoid the use of objectionable words, graphics, photos, etc, which may have a bad effect on society.
