An assessment of the role of advertising in the economic system offers the following benefits: Advertising is a guide to prospective buyers — Information utility Advertising influences primary and secondary demand for a product. Advertising Stimulates product differentiation — Product utility Advertising Stimulates introduction of new products — Encouraging innovation Propensity to consume; and Advertising Provides financial support to media. Now we shall study each of them briefly.
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. 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.
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.
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.
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. 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. 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.
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.Economic Benefits of Advertising.
Advertising can play an important role in the process by which an economic system guided by moral norms and responsive to the common good contributes to human development.
It is a necessary part of the functioning of modern market economies, which today either exist or are emerging in many parts of the world. Social & Economic Impacts of Advertising. In recent times, the word 'Advertising' has become a fiercely mooted topic. Advertising has positive as well as negative, social and economic impacts on our society.
Considering advertising as a public welfare is a positive social impact whereas exposing women as a sex tool comes at the negative side.5/5(3). Sep 07, · Does advertising help or harm the economy? By Brad Plumer. Advertising does appear to make some products cheaper on the whole—presumably .
How advertisers use sex to sell products to women including advertising, because sex is much costlier for them from a Their launch campaign focused on the benefits of their products (high. An assessment of the role of advertising in the economic system offers the following benefits: Advertising is a guide to prospective buyers — Information utility Advertising influences primary and secondary demand for a product.
some economic advantages: Without advertising, the media, including newspapers, television and radio would never be much strong. Advertising provides revenue for commercial mediums which would otherwise need to be funded by the actual consumer of these mediums.