A2zNotes.com -Best Bcom BBA Bed Study Material

MCom 2nd Year Advertising Sales Management Study Material Notes

MCom 2nd Year Advertising Sales Management Study Material Notes


Through, advertisement has been strongly criticized by many scholars yet it cannot be concluded that there is no need for it in the present world of trade, industry, and commerce. Advertisement has proved its success and effectiveness in enhancing consumption and production. Some of the criticisms discussed above may be true but not absolutely correct. Following are the arguments advanced against the 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. An increase in the scale of production brings many economies which decreases the cost per unit of production. Thus, advertisement helps in providing goods and services of high quality to consumers at lower prices.

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

3. No Wastage of Natural and National Resources. Some critics of advertising 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 the right purpose. (MCom 2nd Year Advertising Sales Management Study Material Notes)

4. It does not Encourage the Use of Luxuries. The criticism 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. (MCom 2nd Year Advertising Sales Management Study Material Notes)

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. (MCom 2nd Year Advertising Sales Management Study Material Notes)

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 the advertisement was not there? If yes, how can advertisements 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 not increase. It is also not true because the demand is bound to increase through advertisement, other things remaining the same. (MCom 2nd Year Advertising Sales Management Study Material Notes)

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

The above discussion makes it clear that almost all the criticisms of advertisements 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 the advertisement itself. It is merely due to the advertisers who misuse the tool of advertisement for the fulfillment of their unlawful, unsocial, and undesirable objective. Therefore it is totally baseless to state that advertisement leads to falsehood in business or that the money spent on advertising is wasteful. The need is to control the activities of advertisers and not scrap the advertisement.


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 fulfill the wart. Good and efficient advertising is capable of moving the prospective buyer into the shops and thus in fact 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 :

(i) 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.  (MCom 2nd Year Advertising Sales Management Study Material Notes)

(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 the 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 the initial attention of prospective customers through the use of mechanical devices 

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

(ix) To raise the standard of living of the customers by instigating them to use newer and better products at competitive (advertised) prices.  (MCom 2nd Year Advertising Sales Management Study Material Notes)

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 the product and the enterprise ele

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

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

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

(vi) To increase the confidence and morale of the workers by creating a feeling that they are working in an enterprise with a high reputation of goods public response. (MCom 2nd Year Advertising Sales Management Study Material Notes)

Leave a Reply