advertising costs and benefits
Advertising is an essential part of today’s society. Advertising has been used to promote and exaggerate goods for many years. There are many different forms of advertising methods. These methods include; Television, radio, newspaper and billboard advertising. Advertising is used to promote a variety of goods, and these goods include; cars, clothes and soft drinks and a range of different products for different people of different age group. However there are cases for and against advertising. The cases for include: provide information, which assists consumers to make rational choices; helps firms to expend their market so they can gain efficiencies associated with large-scale production; supporting communication and entertainment as to receive revenue; promotes employment by encouraging high level of consumer spending, as well as employing large number in the advertising industry itself. The cases against include: advertisement designed to persuades rather than inform, thus misleading and exaggerated claims can confuse rather than enlighten the consumers; advertising has become such a large running cost in some industries that it may be a barrier to new firms wishing to enter that industry; the effect of advertising campaign by rival ( Eg. Coca Cola and Pepsi) may cancel each other out, so that each company simply maintains its market share and the cost of advertising are passed onto the consumers in the form of higher prices; the advertising expenditure can be relatively unproductive, diverting resources from productive uses. ... This following advertisement relates to the case for advertising as it provides information which help consumers make rational choice.