Question

Advertisement in tamil advantage&dis advantage

Answer 1

To face competition: Advertising is designed to face new competition. it seeks to develop loyalty towards the advertised brand and to build up permanent customers. it wins over the confidence of the customers in the quality of the advertised products.

To build goodwill: Well planned advertising programs build goodwill for the enterprise and its products. Advertising enhances the image and prestige of the advertiser by highlighting the benefits of the products and services.

Higher sales volume: Advertisements help the producers to reach out to the consumers quickly and improve their sales. If we are influenced by products, we buy the products which we do not need at that instant. Obviously, we are also influenced by the timely offers that the producers advertise.If the offers last only for a certain time, we show our hurry to buy that product as soon as possible.

Introduction of new products: The producers find it very easy to communicate the release of new products to the consumers in a very efficient and cost-effective way through advertisements. It simplifies the work of a salesman and also allows the customers to reach out to other products.

Economies of scale: Advertisements also allow the producers to increase the volume of production which in turn increases the benefits they get from production in large scale. It is a fact that if we buy th things in bulk, we get it a cheaper rate. The same thing is also applicable in production process. We can also eliminate middleman such as wholesalers that reduces the cost for the consumers by reducing the profit margin. Commercial Banks also grant loans to such firms whose products are advertised.

Goodwill: If a particular cosmetic company uses an actress or actor to advertise the products of its brand, it shall definitely develop a reliability for its products. The public shall trust that company and its products which in turn shall increase the valuation of the goodwill and the image of the firm. It helps the firm to face strict competition during the business conditions of depression when all the consumers develop a mistrust against a particular product.


Better quality: As said earlier, the producers always try to retain their old consumers and make new ones by introducing some special changes in their product to make them differentiable from the others.Manufacturers are forced to maintain better standards of the commodity to retain consumers.

Contact between producers and consumers: Advertisements provide links or contact numbers of the product or th service so that the consumers can report their grievances against the use of certain products so that the quality can be bettered. Hence, it brings the consumers and the producers closer to each other.

Benefits of advertisements for the society
Generates employment:Advertisements provide employment to the people all round the world who are concerned in every field. Since, through advertisements producers increases the sales and reach out to the consumers quickly, it increases the employment level in the country as more labor will now be required to boost up the production.

Standard of living: Advertisements help in improving the quality of the products and allows the firms to introduce variable and different types of products with some special features. Hence, it improves the standard of living of people by allowing them to purchase goods relating to the current standards.


Misleading: Advertising is often deceptive and misguides consumers. Exaggerated and false claims are made in the advertisements. Bogus testimonials and other questionable means are used to sell goods. Here is where the joint stock companies spend huge amounts on advertising to kill new and potential concerns.

Wastage of national resources: Role of industries in Indian economy is incomparable. Manufacturers create trivial and artificial differences in the products to develop brand loyalty through advertising. The natural resources, capital requirements and labor that go into production amount to wastes as these could be better employed in the creation of new industries. Here, the public enterprises help the economy to save the natural resources as there is very less competition between the public enterprises.