Question

essay on Advertisements are a necesaary evil

Answer 1

Advertising on one side has been argued that it is an unnecessary business cost which has the effect of raising prices of goods and services. Also it is said that too much expenditure on advertising creates product differentiation and induces consumers to switch from one brand to another without providing them with sufficient objective information.

                      On the other side,   advertising is a tool that aids in increasing demand for a product and, thus opens the way for large scale production at lower cost which is ultimately passed on to the consumers in terms of lower price they pay for the product. Also

    • It increases the variety and quality of good offered.
    • Stimulates competition in technical progress.
    • Hubsidizes the press and television services.
    • Helps in providing employment.

                    The cost of selling due to advertisement goes up and we expect a shift (i.e. an increase) in demand due to it but in the situation of competition where it is applicable, it is difficult to see an appreciable change in demand due to advertisement since all rivals will be advertising simultaneously since no body gains from it.
                    In recent times, the word 'Advertising' has become a fiercely mooted topic.



hope this helps you.