Advantages & Disadvantages of Advertising for Consumers and Sellers

Advantages & Disadvantages of Advertising for Consumers and Sellers.

Advantages & Disadvantages of Advertising: Advertising is defined as the paid, non-personal form of communication about products or ideas by an identified sponsor through the mass media so as to inform, persuade or influence the behavior of the target audience.

Advantages & Disadvantages of Advertising

Advertising is directed to a large number of people and not to one individual. That is why we call it non-personal. Advertising is communication about products or ideas

Is advertising a good or bad thing? What are the pros and cons of advertising? It’s important to take a look at the repercussions of product or service marketing and how they affect an audience.

Advantages of Advertising

Increase in Sales:

The main object of the manufacturer in advertising his products is to promote the sale of his products. Goods produced on a mass scale are marketed by the method of mass persuasion through advertising.

Repetition of advertisements, the manufacturers are not only able to retain existing markets but are also able to expand the markets both by attracting more people to their products and also by suggesting new uses for them. Advertising is a helping hand to selling.

Supplementing Salesmanship:

It creates a ground for the efforts of the salesmen. When a salesman meets its prospect, they have just to canvass for a product with which the consumer may already have been familiarized, through advertisements. Therefore, the salesman’s efforts are supplemented and his task is made easier by advertising.

Lower Costs:

Sales turnover and encourage mass production of goods are enhanced by advertising that results in large scale production, the average cost of production reduces and results in higher profits. At the same time, when the cost of advertising and selling costs gets distributed over a larger volume of sales, the average cost of selling also lowers down.

Greater Dealer Interest:

Advertising creates demand by which every retailer gets an opportunity to share with others. Hence, the retailers who deal with advertised goods are materially assisted by advertising in the performance of their functions. The retailers have not to bother much about pushing-up the sale of such products. Therefore, the evidence more interested in advertised products.

Quick Turnover and Smaller Inventories:

A highly responsive market is created by a well-organized advertisement campaign thereby facilitating quick turnover of the goods. Resulting, in lower inventories in relation to sales and being carried on by the manufacturers.

Steady Demand:

Seasonal fluctuations on demands for products are smoothened by advertising generally the manufacturers try to discover and advertise new possible uses of which a seasonal product may be put. The innovation of cold tea and cold coffee for the use during summer has helped in increasing the demand for these beverages even in that season. The same may be said for refrigeration.

Improvement in Quality:

Usually, goods are advertised under brand names. When a person is moved by the advertisement to use the product, they proceed with the hope that the contents of the particular brand will be better than the other brands of the same goods. When his experience confirms his expectation, a repeat order can be expected.

Or else, the sales may rise very high once but may drop down very low subsequently when the consumer’s confidence in the quality of the product fails.

The facility of Purchasing:

Purchasing becomes easy for consumers after advertising. Generally, the resale prices (prices at which the goods are to be sold by the retailers) are fixed and advertised. Thus, advertising offers a definite and positive assurance to the consumer that they will not be overcharged for the advertised product. The consumer can make his purchases with utmost ease and confidence.

Consumer’s Surplus:

The utility of given commodities is increased by advertising for many people. It points-out and pays even more for certain products that appear to have higher utility to them. If these products are available at the original lower prices, there will naturally be a certain amount of consumer surplus in terms of increased satisfaction or pleasure derived from these products.

Education of Consumers:

Being an educational and dynamic principle, the prime objective of advertising is to inform and educate the customers about new products, their features, prices and uses. It also convinces them to adopt new ways of life, giving up their old habits and inertia and have a better standard of living.

Retail Price Maintenance becomes Possible:

The consumers are quite keen on getting quality products at stable prices over a period of time. 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.

In case the prices go on changing abruptly, these individual budgets are likely to be distorted to such an extent that the consumers will have to think of substitutes for the products they are enjoying at present.

Acts as a Salesman:

What a traveling salesman does for this organization is done by the advertising at the least cost. This is the reason that most of the retail organizations do not employ a large army of traveling salesmen, rather they are willing to spend on advertising which attracts consumers to the sores where the counter salesmen cater to their needs.

Ensures Quick Sales:

Every retailer having the stock of different producers needs a quick turnover. By bringing the wide range of these products to the notice of the consumers, advertising boosts up sales.

Faster sales imply the specific advantages such as reduced capital look-up, reduction in losses of holding stock over a longer period, increased profits even by reducing the profit margin per unit. Further, advertising gives much leeway and freedom to better serve the needs of the consumers.

Change in Motivation:

Advertising has changed the basis of human motivation. While people of earlier generations lived and worked mainly for the bare necessities of life, the modern generation works harder to supply itself with the luxuries and semi-luxuries of life.

Sustaining the Press:

For support and sustenance, the newspapers, periodicals, journals, look for advertisers, press, look to advertisements. In the absence of income from advertising, the newspapers have to be produced at a higher cost and may not be able to keep themselves free from their competitors.

Encouragement to Artists:

Designing artists, writers to do creative work. They earn their living from preparing advertisements.

Encouragement to Research:

When manufacturers are assured of sufficient profits. They undertake research and discover new products or new uses for existing products. Advertising puts forward this assurance and thereby encouraging industrial research with all its advantages.

Disadvantages of Advertising

 

High Price to Consumers:

Advertising increases the costs of the product. Customers have to pay a high price for the products heavily advertised. Companies do not forgo their profits. Thus, businessmen can earn more at a cost of customers.

Wastage of National Resources:

Due to excessive use or proliferation of advertising, valuable national resources are wasted. In many cases, companies undertake rigorous advertising efforts without specific needs.

Impulsive Buying:

It creates unnecessary needs. People are emotionally forced to buy the products. Sometimes, it instigates people to buy unnecessary products.

Materialist Implications:

It promotes materialism. It makes people mad after things, whether useful or not.

Fraud to Customers:

It has misleading/deceptive implications. Most claims are exaggerated. Advertising has a little truth and a lot of false.

Erotic, Unrealistic, and Exaggerated:

It is difficult to justify the company’s claims made in an advertisement. Some claims or appeals are completely baseless. Advertising appeals related to biscuits, tonic foods, and herbal and pharmaceutical products are far from reality. Some advertisements are so vulgarly presented that have only erotic appeal than commercial.

Company-oriented:

It is erroneous to believe that advertisement is always useful to customers. In most cases, it benefits only to advertisers, sometimes, even at a cost of buyers.

Creation of Monopoly:

An effective advertising campaign creates a permanent place for certain brands in the market. It blocks the entry of other competitors. A monopoly always has an ill-effect on the buyer’s interest.

A compulsion to Customers to View, Read, or Hear:

Advantages & Disadvantages of Advertising

It is a disturbance to people. Advertising carries a nuisance value. People are not interested to watch, read, or hear commercial ads, but they have to do it.

Source of Confusion and Stress:

Due to over bombarding of advertising on different mass media, people are confused and feel stress in regard to the selection of products.

Read Also: Benefits and Disadvantages of Online Shopping

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