Advantages of Advertising:
1. Mass
production would be impossible without marketing and advertising to
generate mass consumption.
2. Production
and employment are encouraged, thus resulting in increased income
and a better standard of living than would be possible if advertising did not
exist.
3. A speedier acceptance
of new products and major inventions is made possible by advertising. New uses
for existing products are identified and expanded through advertising.
4. Consumers
are better informed about competing products and their qualities through the
information supplied by advertising.
5. Enlargement
of the market through advertising reduces the price of goods because overhead
costs are spread over greater production and output.
Disadvantages
of Advertising:
1. Although
costs per unit of product may be reduced through greater output stimulated by
advertising, some producers have not lowered their prices accordingly.
2. Advertising
is wasteful, because some people do not read or listen to ads, and for some
products, advertising is merely competitive- it enables one company to attract
customers from another.
3. Successful
advertising by a few firms in an industry may limit the entry of new firms and
thereby abridge competition.
4. High
pressure advertising of a few brands of a high priced product may divert
customers' attention from the lower priced substitutes of same quality.
5. Some
advertising is fraudulent, misleading, or deceptive.
6.
It creates poor patterns of consumption.