Waste coverage. Unfair competition and price wars are avoided as prices are controlled by manufacturers through advertisement. Creativity. The natural resources, capital equipment and labour energy which go into the production of new items to take the place of the discarded ones amount to waste when measured in terms of social well-being. B. Adds to the Cost of Production and Product 2. Creation/Enhancement of Goodwill of Company and Product as clientele increases. Each consumer has his or her own family budget where he or she tries hard to match the expenditure to the disposable income for a socially acceptable decent living. With proper placement, a broad base of exposure is possible in local markets, with both day and night presence. Hence, the retailers who deal in advertised goods are materially assisted by advertising in the performance of their functions. Advertising promotes the consumption of goods and services which are not even required by the people. ii. Radically advertising has changed the basis of human motivation. By constantly associating the name of the manufacturer with certain standards of quality, advertising builds a fund of goodwill for him. Display advertising is obviously more attractive than flyers, bulletin boards or traditional billboards. Hence it is wastage of national resources. Advertising acts as an aid to selling. Advertisement also raises demand for products, increases scale of production, brings economies of large scale production and thus finally decreases cost per unit and hence price. Even adulterated food and medicines are marketed, which by no stretch of imagination can benefit anybody. 7. 8. Some of the advantages and disadvantages of advertising are:-, A. Hence, it is called mass means of communication. This will mean large profits for the manufacturer and cheaper products for the consumers. At times, various types of appeals are advanced to arouse interest in the product. Advertising is instrumental in increasing the goodwill of the company (advertises). Promotes Unnecessary Consumption 7. as their income increases. The same maybe said for refrigeration. The average CPM of outdoor is approximately one-half of radio ih fi**>« and far less than that of TV, magazines, and newspapers. Forget the costly machine- gun strategy of newspaper advertisements, Internet advertising is targeted! While billboard advertising can be a very effective promotion tool for your product or service, it comes with its pros and cons. These regulations can vary from state to state and country to country. Advertising encourages excessive and at times unnecessary expenditure by consumers. Advertising leads to a rise in the standards of living, not only through the education of the buyers but also through greater consumption, increased production and a larger volume of employment. Increased Sales and Profits due to high demand, easy sale of products, and high rate of turnover. So they evidence more interest in advertised products. An objection which is most commonly raised against advertising is that it tends to develop monopolies. Through its medium people get information about new products. 5. This may be followed, in course of time, by a shift of choice on the part of the consumers. Benefits / Advantages to Producers / Manufacturers: 1. Purchasing becomes easy for the consumers after advertising. Disclaimer 9. Promotion of Sales 2. 6. Limited message capabilities. Lengthy appeals are not likely to be effective. (6) Advertising media, e.g., newspapers, magazines, carry many messages competing to secure attention of audience simultaneously. Demand for new products is created by explaining merits of the product showing superiority over rivals’ products and giving knowledge about new products. Through misrepresentation of the benefit a product will give, goods of no real value are sold. Programmes like Google’s Ad Words and AdSense match up advertisers with content that their target market peruses regularly. 100% sales 0% fees. Hence, investing a large sum in it does not necessarily yield immediate results thus limiting its utility. In a sense it is true since expenses on it form a part of the total cost of the product. When users see your ad they aren’t actively looking for your products or services, so they may not be ready to buy. To mitigate the cost incurred during advertising of the product or the service, the advertiser adds the cost of advertisement to the total price of the product or the service. When users see your ad they aren’t actively looking for your products or services, so they may not be ready to buy. (5) Non-threatening nature of non-personal presentation. The Golden Tobacco Company has a monopoly of Panama brand of cigarettes but not of the whole cigarette industry. Advertising is, one of the items of costs but it is a cost which brings savings in its wake on the distribution side.