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Business Studies · Ch 10 — Marketing

Objections to Advertising

10.5.4.2.1

Objections to Advertising

Advertising is one of the most visible and frequently used promotional tools, but it also attracts heavy criticism. Opponents argue that advertising is a social waste — it adds to cost, multiplies people's wants, and undermines social values. Supporters counter that advertising increases reach, lowers per-unit production cost, and fuels economic growth. The textbook examines four major objections and evaluates how far each holds true.

1. Adds to Cost

Opponents say advertising unnecessarily inflates the cost of a product, and this extra cost is passed on to buyers as higher prices. A few seconds of TV advertising can cost marketers several lakhs of rupees; a print ad in a newspaper or magazine also involves large expenditure. Since cost is a key factor in price fixation, the argument goes, advertising makes products more expensive.

Supporters respond that while advertising does involve heavy spending, it also boosts demand by informing a large number of potential buyers about the product's availability and features. Higher demand leads to higher production, which brings economies of scale. As total cost is divided over a larger number of units, the per-unit cost of production actually falls. So, although total cost rises, the burden on each consumer is reduced — not increased.

2. Undermines Social Values

Critics charge that advertising promotes materialism and breeds discontent. People see new products and lifestyles in ads, feel dissatisfied with their current situation, and may be drawn to lifestyles that do not find social approval.

Supporters argue that this criticism is not entirely true. Advertising informs buyers about new products that may be genuine improvements over existing ones. Without such information, buyers might continue using inefficient products. Moreover, advertising's job is only to inform — the final choice to buy or not rests with the buyer. If the advertised product satisfies a genuine need, the buyer may even be motivated to work harder to afford it.

3. Confuses the Buyers

Another objection is that so many competing products make similar claims that buyers get confused about which one to trust. For example, several detergent brands claim the same whiteness or stain-removing ability; several toothpaste brands claim whiter teeth or fresh feeling. This similarity makes it hard to decide.

Supporters counter that buyers are rational human beings who base purchase decisions on factors like price, style, and size. They can clear their confusion by analysing information from advertisements and other sources before deciding. However, the textbook notes that this criticism cannot be completely overruled — confusion does remain a real problem.

4. Encourages Sale of Inferior Products

Critics say advertising does not distinguish between superior and inferior products and persuades people to buy even inferior ones. …