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   /   m   o   c .   e   e QUESTION No 22: Define advertising advertising & discuss its m erits &   r demerits?    f  ANSWER:  A NSWER:   e   n    i INTRODUCTION:    l In modern world of today advertisement has become a major tool for large organization as well as small   n organization to survive in the competitive environment.   o  Advertisement is considered to be much more effective,    l widespread & less costly method of establishing contact    lnow become an essential part with the customers. It has of enterprise system.   a MEANING: .  Ad  A d vert ver t i s i n g means bringing the product in   w to th e notice of general general public & helps in increasing increasing   w the th e sales sales   w    /    /   :   p     t    t    h ADVERTISING:

. The word advertisement has been derived from

Latin words. .

 ADVERTISING

 AD

VERTO

   /   m   o   c .   e   e   r    f   e   n The term advertising has been denied in different ways    i some of the common definitions    lare:   n DEFINITIONS:   o    lS ALL PAID “ADVE DVERTISI TISING IN INCLUDES LUDE PAI D OF NONPE NON PER RSONA ONAL PRE PRESENTATI TATION ONS S FOR THE PROM PROM OTION OTION OF IDEAS, DEAS, GOODS GOODS &    l SERVIC RVI CES BY   a AN AN IDENTIC DENTI CAL SPON SPONS SOR.”  OR.”  .   w “ADVE ADVER RTISI TISING IS A ROOT OF M ACHINE HI NE M ADE M AS ASS S   wOF SESELLILLING WHI PRODU PRODUC CTION TION M ETHOD W HIC CH SUPPLE UPPLEM ENT THE   wONAALITY OF THE INDIV VOIC OI CE & THE PE PERS RSON DI VIUAL SE SELLE LLER.”     /    / Followings are the merits of advertising:   :   p  1. 3R’S OF ADVERTISING:    t    t    h (TOWARDS)

(TURN)

 ATTRACTING  ATTRA CTING CUSTOMERS CUSTOMERS TOWARDS THE PRODUCT

ACCORDIND TO AMERICAN MARKETING ASSOCIATION:

ACCORDING TO JONES:

MERITSOF ADVERTISING:

   /   m  Advertising is a very effective method of presenting   o & extremely. information about the product both internally   c It helps in Retaining loyal customers . Reducing lost c ustomers   e Recurri ng new new customers c ustomers   e   r 2. REDUCTION IN PER UNIT COST: It enables a businessman to increase the scale of his    f product. Because through advertisement the rise in   e demand is made which results in large scales production   n & the reduce cost per unit.    i 3. EMPLOYMENT OPPORTUNITIES:    l The advertisement of the product is available & possible   n through advertising agencies, advertising agencies hire   o signors, painters, cartoonists who enhance the    lfor all the people relevant to this employment opportunities    l held.   a 4. ELEMINIATION OF MIDDL MIDD L EMAN: .  Advertisement helps to create awareness about the   w product among people which helps the producer in the   w with creation of awareness scale of its product because the retailers directly  w contacts manufacturer & there is no need traveling salesman    / & other middleman.    / 5. INSTITUTIO INSTITUTIONAL NAL IMAGE:   :in building up a favorable image of a  Advertising helps   p  advertisement a company can easily company. Through    t    t    h

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   /   m portray its reputation, policies all above the product   o attributes.   c 6. CONSUMER BENEFITS: . Consumer watches different ads of different products &   e remain informed about their qualities .So advertisement is helpful to select the best one in time.  e   r 7. SOCIAL BENEFITS:    f The social benefits of advertisement are that it:   e Maint Maintain ain contact between between pro duce duc er & consum con sumer  er    n Has Has educational educ ational value    i er at cheaper Provide info rmation to consum cheaper cost foreign t hrough paper paper me m edia.    l   n 8. REGULAR DEMAND:   o The advertising creates a regular demand or maintains the    lproduct in the market because demand of a product in the    lin making the producer producer remains remains busy making the products products & they cannot maintain a regular   awith all customers. . 9. SALE OF ENTI ENTIRE RE LINE OF PREO PREODU DUCT CT::   w  Advertising helps in promoting the whole family of   w by the firm. Foreign company products manufactured manufacturing manufacturing TV TV may precede precede VCD, CD players players also. also. A   w single advertisement can promote the sale of whole range    / of products.    /   : COMPETITION: 10. ENCOURAGE  Advertisement  p  encourages competition among the competing firms.    t It leads to the better production of goods    t    h

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   /   m .The consumers are able to get quality goods at   o competitive rates.   c 11. EXPA EXPA NSION NSION OF MARKET: MARK ET: .  Advertisement helps in expanding the market of old   e products. The advertisements deliver the message to the customer for the product available in  e the market which   r As a result makes the comparison & decision possible. market expands.    f   e 12. PROMOTING PROMOTING ART & CULTURE:   n  Advertisement being seen all over the world promotes the    icountries. Moreover it art & culture of a nation in other helps in exchange of ideas which    l express new horizon.   n   o    l    l   a .   w   w  Advertising is not an unmissed blessing. It has certain   w demerits which are given as below:    / 1. ECONOMIC WASTE:    / One of the greatest arguments against advertisement is that is causes a  : huge investments by the companies   p  is charged to consumers in the form of which is ultimately high selling    t price.    t    h DEMERITS OF ADVERTISING:

   /   m   o 2. MONOPLY:   c dominances Heavy investments by the large firms create of those firms on market which causes problems for small . firms & which leads to the exploitation of customers.   e   e 3. CAUSES UNHAPPINESS:  Advertising cause’s unhappiness &  r disappointment to those people who cannot buy the   f new product introduced which may lead to unfair means of earning income for   e achievement of those goods.   n    i 4. TRUTH IN ADVISING: The advertising sometimes gives    l misleading pictures of their product. This misrepresentation creates cheating of   n innocent customers.   o    l 5. MISUSE:    lis misused by putting it enables Sometimes advertisement in the form of poster, Moreover road side hoarding play   a their part to catch the eye of readers which may cause . accidents.   w 6. PROMOTION PROMOTION OF  w SOCIAL SOCIAL EVILS: Sometimes crime strikes below standard words & pictures   w are used in advertisement    / which promotes social evil.    / 7. SOVERIGHTY OF CONSUMER: The sovereignty  : of consumer is greatly decayed by the various media  p  of advertising. The consumer purchases the    t    t    h

   /   m goods what manipulate hence produced for them. They   obig firms. cannot get the goods made to order by the   c CONCLUSION: . It is conclude oncluded d t hat advert advert ising ising is an import ant t ool t o flouris fl ourish h   e and enhance enhance t he busines businesss in develop developing ing count ries ri es   epract ice like lik e Pakist akist an. “To “To show show of i s a comm comm on pract ice now -a-days -a-days.” .”   r s. It s main Advert Advert ising ising has merit s as w ell as demerit demerit mai n objec obj ectt is to    fers.. creat e aw areness areness among am ong t he cons consum umers   e   n    i    l   n   o    l    l   a .   w   w   w    /    /   :   p     t    t    h