Class 12 Business Studies - Chapter Marketing NCERT Solutions | ‘Expenditure on advertising is a s

Advertising is the most frequent medium of promotion, it attracts a lot of criticism as social waste, multiplying needs of consumers, developing materialism, etc. but the proponents discourage such opinions. Thus, it is important to examine these criticisms and see how far they are true.

1. Adds to cost: The opponents of advertising argue that advertising unnecessarily adds to cost of product, which passes on to the buyers in the form of high price. However, on the other hand, proponents claim that advertising helps to increase the demand of the product. An increase in production leads to large scale production which ultimately helps in reducing cost due to economies of scale and thus, the price of the product.

2. Undermines social values: Advertising causes discontentment among the customers and promote materialism, as they come to know about newer and better products available in the market. But, the objections are not entirely true because advertisements help the buyers by informing them about the new products over the existing ones. If they are not informed, they may be using inefficient products.

3. Confuses Buyers: The opponents say that so many advertisements make similar claims and the buyer gets confused as to which one is true and can be relied upon. It may create a state of confusion as to which product he should buy in the market. However, the criticisms are not true as we know that consumers are rational human beings, who can take their decisions considering various aspects of a product. He can use his wisdom along with information provided by advertisements to make the right choice of purchase.

4. Encourages sale of inferior goods: Opponents of advertising claim that is does not distinguish between superior and inferior goods. However, we also know that no good is superior or inferior. The level of quality depends upon the economic status of the target customer. Advertisements promote all goods, customers may pick them according to their requirements.

5. Some advertisements are in bad taste: Some advertisements are in bad taste and show something which is not approved by the society. They may show something objectionable and may cause distortion of certain relationships. Definitely, advertisements should avoid use of objectionable words, graphics, photos, etc, which may have a bad effect on the society.

Thus, it can be said that though expenditure of advertisement draw criticism but the objections are not fully true. Because on the one hand they can be misused and they have their own cons but on the other hand they cannot neglect the benefits derived from advertisement.