Question

'Though advertising is one of the most frequently used the medium of promotion of goods and services, it attracts a lot of objections.' Explain any four such objections.

Answer 1

There are different views with regard to expenditure on advertising. On one hand, it is considered a social waste as it adds to the cost of production, weakens social values and adds to consumer needs and desires. On the other hand, it is beneficial as it helps in enhancing the sales of the product of the firm.

Points stating that advertising is a waste to the firm:

1. Higher Cost: Expenses on advertisement add to the cost of the product and the firm, and these are then passed on as the additional cost to consumers in the form of higher prices
2. However, advertising helps in attracting consumers to the product. Accordingly, the demand for the product increases. To cater to the increased demand, the production increases. An increase in the production, in turn, lowers the per unit cost of production
3. Creates Confusion: It is argued that with advertisements of a large number of similar products, the consumer often gets confused. In contrast, those who support advertisements argue that they help in increasing the knowledge of the consumer with regard to the availability of different products in the market. In this way, it increases their choice and helps them in making an informed decision with regard to purchase of the product
4. Promotes Inferior Goods: Advertisements induce consumers to purchase the product. Even inferior goods can be advertised, and their demand is induced. However, it is said that quality is only a relative product. Advertisements provide knowledge with regard to all kinds of products. Whether to purchase the product or not is up to consumers themselves.
5. Objectionable Advertisements: Sometimes, advertisements can be objectionable in the sense that they undermine social values. For instance, in certain advertisements, women are shown in an objectionable manner. Sometimes, the language, images and content of the advertisement may not appeal to society at large.