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The use of advertising and its functions in the economy

Advertising has many positive impacts along with its negative pictures. It is not related to studies, but it educates. It is not a journalist but gives all information. And it is not an entertaining device but entertains everyone.

Social and Economical Aspects of Advertising

Economic role of Advertising Value of Products: The advertised products are not always the best products in the market. There are some unadvertised products also present which are good enough.

But advertising helps increase value for the products by showing the positive image of the product which in turn helps convincing customers to buy it.

Role of Advertising in Economic and Social Development

Advertising educates consumers about the uses of the products hence increasing its value in minds of the consumers. Some advertised products do cost more than unadvertised products but the vice versa is also true.

But if there is more competition in the market for those products, the prices have to come down, for e. Thus some professional like chartered accountants and doctors are not allowed to advertise. Even if the product is heavily advertised, it does not mean that the demand or say consumption rates will also increase.

The product has to be different with better quality, and more variety than others. Effect on business cycle: Advertising no doubt helps in employing more number of people. It increases the pay rolls of people working in this field.

It helps collecting more revenues for sellers which they use for betterment of product and services. But there are some bad effects of advertisements on business cycle also.

  1. The basic unit of measurement in the marketing system is a transaction which is a commercial exchange of value between the two by the parties to — the manufacturer of the goods or services and their consumers. Advertising can address specific segments by highlighting a connection between their identity to the product and the brand.
  2. Advertising is a tendency to expand the production of goods, and thereby promote employment in the manufacturing sector of the economy. This occurs, for example, in cases where the advertising spreads in the society ideal consumption patterns in adverse socio-economic conditions, not giving the reason the majority of the members of this society to form an opinion about the availability of these models.
  3. It usually points to a "unique selling proposition", a key wedge against all other competitors. The medium used and the authority of the testimonials have strong impact on the credibility of advertising.

Sometimes, consumer may find the foreign product better than going for the national brand. This will definitely effect the production which may in turn affect the GDP of the country.

7 Functions and Effects of Advertising

The economic aspects are supported by the Abundance Principle which says producing more products and services than the consumption rate which helps firstly keeping consumers informed about the options they have and secondly helps sellers for playing in healthy and competitive atmosphere with their self interest.

Social role of Advertising: There are some positive and some negative aspects of advertising on the social ground. They are as follows.

  • In turn, the manufacturers, the derivation of new products or services on the market, using the advertising opportunities, provide themselves with an effective means of communication with consumers;
  • This figure is comparable with similar indicators in other economically developed countries;
  • It's well beyond the aim of the present short introduction to provide full schemes of those relationships;
  • In other words, advertising can give rise to a wave of reactions in social networks, so that, for instance, friends who saw the advertising tend to suggest - when asked for advice - exactly that brand, thus inducing imitation not only of real choices by others but also of their intentions and attitudes;
  • Advertising - especially of new products - can have unexpected consequences and many campaigns fail their targets.

The relation between the buyers and sellers is maintained if the buyers are satisfied with what they saw in advertise and what they got after buying that product. These problems can be overcome if the seller keep their ads clean and displays right image of the product. Capturing the Minds of the consumers is the main intention of these ads.

  • Since private labels do not have large ad-hoc advertising budget, they are profitably sold by positioning them nearby the industrial national brands;
  • So, now more than 50 percent of citizens have a negative attitude towards advertising;
  • Advertising contributes to the formation of certain standards of thinking and social behavior of different social groups, and also supports and reinforces existing traditions and the established habits of consumers.

Effect on Our Value System: The advertisers use puffing tactics, endorsements from celebrities, and play emotionally, which makes ads so powerful that the consumers like helpless preys buy those products. This affects in increased the cost of whole society and loss of values of our own selves.

Some ads are so offensive that they are not acceptable by the buyers.

  • Massive advertising is typical of big oligopolists operating in a large consumer market e;
  • To modify experience is a tough task for advertising, but some comprehensive strategies can be somewhat effective;
  • The goal of advertising is to build and reinforce relationships with customers, prospects, retailers and important stakeholders;
  • Excessive fear appeal — The fear appeal in advertising creates anxiety that is supposed to be subsidized by an available product.

For example, the ads of denim jeans showed girls wearing very less clothes and making a sex appeal. These kinds of ads are irrelevant to the actual product. Btu then there is some ads which are educative also and now accepted by people. Earlier ads giving information about birth control pills was considered offensive but now the same ads are considered educative and important. But at the last, there are some great positive aspects which help Development of society and growth of technologies Employment Gives choices to buyers with self interest Welcomes healthy competition.