Advertising is a feature of free competitive enterprise and can be a contributory factor towards greater availability of goods. It increases distribution not only of the advertised products, but of other products aswell. Advertising helps to reduce the cost sold to the consumer. The costs of production and selling arelower when goods are produced and sold in larger quantities. It is also an important factor in productimprovement. Advertising helps to make the purchase of commonplace products emotionally moresatisfying. This may apply, for instance, to the consumers of Lijat Papad who may derive satisfaction out of buying advertised product, or for that matter, users of perfumes and lipsticks where association withadvertising may be instrumental in reducing dissonance.
7) Limitations of Advertising
Advertising has several limitations. There is a view that advertising increases the cost of goods sold to theconsumer. Advertising can be wasteful considering that only a small section of the audience covered by themedia used may relate to the product advertising. The qualitative aspect of advertising is its strength. It canalso be a major weakness when stereotyping an innovation. Advertising may encourage unsound or falsevalues especially through its effect on children and youth. It creates an emotional appeal. Critics point outthat any emotional appeal, in contrast to a rational appeal, is misleading. Finally, advertising can endanger competition. Big advertisers can monopolize the market.
Role of Advertising in Marketing:
Advertising is an all-pervasive facet of most growing communities. Ithas important consequences for the advertisers who use it and for individuals who are exposed to it.However, its economic and social impact is a subject of continuous controversy. The following aspectsillustrate the basic purpose of advertising:
1) Communication with Consumer
There is an increasing need for information about a wide variety of products as the economy expands andgrows more complex. Advertising is a major way of establishing communications between manufacturesand other Organisations providing services or trying to put across ideas and concepts, on the one hand, andcustomers, buyers and potential acceptors, on the other. Advertising is a reminder to the existing consumersand it aims at cultivating new prospects as well. Advertising has, therefore, been described as ‘effectivecommunication’ with the target audience.
Advertising attempts to persuade prospective buyers to buy a product/service. According to Clyde Miller,all success in business, industry and similar activities depends upon the process of planned persuasion. Inmodern markets, the producer who is content with advertising that merely identifies or informs may soonfind himself in a vulnerable position. The consumer should be aware of the advertiser’s persuasive interest,no matter how restrained or informative the message may be.
3) Contribution to Economic Growth
Advertising contributes to economic growth by helping to expand the market, particularly for new products, and by helping to develop new market segment. A company, which invests in research anddevelopment in order to develop new products, has to depend on advertising for establishing the market for these products. In the board social context, advertising can be motivating factor for the less privileged for increasing their purchasing power. Advertising is also a potent vehicle for achieving acceptance of desirable and useful concepts and ideas where the profit motive is minimal or missing altogether. This may be seen in the case of non-profit objectives, such as preventive aspects of public health, developing thesmall family norm especially in over-populated countries, dissuading drunken driving, and so forth.
4) Catalyst for Change