M Com 2nd Year Advertising Sales Management Study Material Notes

CRITICISM ASSAILED

Through, advertisement has been strongly criticised by many scholars yet it cannot be concluded that there is no need of it in the present world of trade, industry and commerce. Advertisement has proved it success and effectiveness in enhancing the consumption and production. Some of the criticisms discussed above may be true but not absolutely correct. Following are the arguments advanced against above criticisms:

1. Cost of Advertisement is not a Burden upon Consumers, One of the strong criticisms against advertisement is that the cost of advertisement is added to the cost of production which increases the

cost per unit and in this manner proves a burden upon consumers. But the reality is that advertisement increases the demand for the products which increases the scale of production. Increase in the scale of production brings many economies which decrease the cost per unit of production. Thus, advertisement helps in providing the goods and services of high quality to the consumers at lower prices.

2. It does not Encourage Monopoly. Advertisement is strongly criticised on the ground that it encourages monopoly but it is also not true. The fact is that advertisement creates healthy competitive market for the products and it motivates research and development.

3. No Wastage of Natural and National Resources. Some of the critics of advertisement argue that it involves the wastage of natural and national resources. This argument cannot be regarded as well supported because it is the right use of these resources for right purpose.

4. It does not Encourage the Use of Luxuries. The criticista that advertisement encourages the use of luxuries, is also not very true. The fact is that it makes the new products and their uses known to the consumers which helps them in making their selections and increasing their standard of living.

5. It does not Make the Selection Difficult. Advertisement is said to make the selection difficult but the fact is that it helps the consumers in making their selections because with the help of advertisement, consumers can decide what to purchase and form where to purchase

6. Social Evils are not Due to Advertisement. It is said that advertisement is responsible for causing and creating many social evils but it is not absolutely true. Was there no social evil when advertisement was not there? If yes, how can advertisement be blamed for these evils.

7. It is not a Wastage. It is said that money spent on advertisement is a wastage, if the demand for the advertised goods and services does pot increase. It is also not true because the demand is bound to increase through advertisement, other things remaining the same.

8. Fraudulent Advertisement. It is true that some of the advertisements are untrue and fraudulent but it can not be regarded as the disadvantage of advertisement. It is the advertiser to be blamed for it.

Above discussion makes it clear that almost all the criticisms of advertisement are untrue and far from reality. If there is any sound objection against advertisement, it is also only due to the advertisers and not due to advertisement itself. It is merely due to the advertisers who misuse the tool of advertisement for the fulfilment of their unlawful, unsocial and undesirable objective. Theretore it is totally baseless to state that advertisement leads to falsehood in business or the money

spent on advertising is wasteful. The need is to control the activities of advertisers and not to scrap the advertisement.

FUNCTIONS OF ADVERTISING 

The main function of advertising is to increase the sales of the product by attracting prospective buyers. It creates certain public attitudes towards the product. First it persuades the reader that the product would satisfy and fulfil the wart. Good and efficient advertising is capable of moving the prospective buyer into the shops and thus in facu selling itself. It not only attracts new customers but also maintains the old customers.

Advertising performs a number of functions which may be broadly classified under the following two main heads:

1. Primary Functions. Amongst primary functions, the following are important :

(1) To increase the sales of the product or products by securing greater consumption through attracting new customers, maintaining old customers and introducing new uses of a product. 

(ii) To assist the dealers (Wholesalers and retailers etc.) to sell the advertised goods effectively. 

(iii) To persuade the dealers to stock advertised goods in sufficient quantities and thereby persuade the prospects to buy the advertised goods. 

(iv) To remove the obstacles to the sale by overcoming false impressions and prejudices, etc. by encouraging stable prices. 

(v) To develop brand preference by display of the name in such a way that it is linked with the satisfaction of wants and association with the ideas of prestige, service, price refund and the like. 

(vi) To increase per capita use by constant repetition of advertising 

(vii) To secure initial attention of the prospective customers through the use of mechanical devices 

(viii) To provide insurance for manufacture’s business by increasing sales, developing brand loyalty, increasing competitive power and goodwill of the enterprise ete. 

(ix) To raise standard of living of the customers by instigating them to use never and better products at competitive (advertised) prices 

2. Secondary Functions. The main secondary functions of Advertising may be summarised as under:

(i) To assist salesmen and boost their morale for increasing sales and facing a difficult customer. 

(ii) To finish the requisite information to salesmen, dealers and the customers about the product of product and the enterprise ele

(iii) To increase profits by increasing sales and scope of the market. 

(iv) To assist the enterprise for securing better employees–executives, salesmen, workers etc. 

(v) To reduce production and selling costs by increasing sales. 

(vi) To increase the confidence and morule of the workers by creating

a feeling that they are working in an enterprise of high reputation of goods public response.

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