ADVERTISING AND BRAND MANAGEMENT TOPIC- ROLE OF ADVERTISING IN SOCIAL AND ECONOMIC DEVELOPMENT OF ECONOMY SUBMITTED BY- NAME ROLL NO. TOPIC 1.Anmol Dawra 5103 Economic impacts of advertising 2.Chandni rani 5139 Social impacts of advertising 3.Pallavi Goyal 5111 Benefits and limitations of advertising 4.Arshdeep 5243 Is advertising a waste?

INTRODUCTION

ECONOMIC IMPACTS OF ADVERTISING

EFFECT ON PRODUCTION COST VARIOUS ECONOMIES OF SCALE BETTER UTILISATION OF EXPENSES AVAILABILITY OF GOOD RAW MATERIAL AVAILABILITY OF BETTER TECHNOLOGY

EFFECTS ON DISTRIBUTION COST Reduction of personal selling expenses Less selling efforts Lesser personal selling

EFFECT ON PRICES Reduction of per unit production cost Per unit selling and distribution cost Advertiser himself reduces prices

EFFECT ON DEMAND EDUCATING THE AUDIENCE ABOUT THE USES OF PRODUCTS AD CAN HELP IN SHIFTING THE DEMAND CURVE OF THE PRODUCT

EFFECT ON COMPETITION Promotes competition

EFFECT ON CONSUMER’S CHOICE Provides information Comparative study Impels the consumer

EFFECT ON BUSINESS CYCLES HELPS IN REDUCING THE BUSINESS CYCLES PERIOD OF RECESSION PERIOD OF BOOM

EFFECT ON NATIONAL INCOME ADVERTISING PROMOTES DEMAND INCREASES PRODUCTIVE AND INDUSTRIAL ACTIVITIES PROMOTES GROWTH IN AGRICULTURE GROWTH IN SERVICE SECTOR INCREASE IN EXPORTS

EFFECT ON EMPLOYMENT

EFFECT ON PRODUCT QUALITY PROMOTES COMPETEION FOR LONG TERM SUCCESS IN BUSINESS GOOD QUALITY PRODUCTION IS MUST

EFFECT ON STANDARD OF LIVING PROMOTION OF DEMAND PRICE REDUCTION CONSUMER HAS WIDER CHOICE PERSUADES THE PEOPLE

SOCIAL ASPECTS OF ADVERTISING

INTRODUCTION Advertising affects social aspects of people in both positive and negative ways. It affects lifestyle, cultural values, standard living, tastes, likings and preferences, etc. some advertising appeals badly affect children and undermine the status of women and aged persons in society.

Social aspects of advertising Stereotyping in advertising Wrong advertising appeals Confuses people Advertising of controversial products Too persuasive Untruthful advertising Effect on culture Effect on media Materialism Effect on children

Untruthful/Deceptive advertising Ads not disclosing material facts about the product/service. Such ads are short-lived and illegal under trade practices of MRTP Act.

Effect on culture Culture includes lifestyles, values, customs, moral values etc. It can be within the country and with other countries also It has both negative and positive sides.

Effect on media Critics argue that media is controlled by advertiser . Types of media are newspapers , magazine, tv , etc. Newspapers cover its cost through ad-revenues. Media does not bother about type of ad the advertiser is given.

Materialism Advertising make people buy the things which they don’t need and cannot afford.

Effect on children They are unable to assess merits and demerits of the products . They insist their parents to purchase the advertised products.

Stereotyping in advertising stereotyping refers to presenting a group of people in certain roles only. Advertising has received criticism for stereotyping women and aged people.

Wrong advertising appeals Sex appeal Fear appeal

Confuses the people Ads creates unnecessary differences in brands while products are not actually different.

Advertising of controversial products Ads related to tobacco products , alcohol , contraceptives are controversial.

Too persuasive Repeated ads control the mind of consumer and he is not in a posion to think about other brands.

BENEFITS / IMPORTANCE OF ADVERTISING

BENEFITS / IMPORTANCE OR ROLE OF ADVERTISING 1. BENEFITS TO MANUFACTURERS 2. BENEFITS TO CONSUMERS 4. BENEFITS TO SOCIETY 3. BENEFITS TO DISTRIBUTORS AND SALESMAN

BENEFITS TO MANUFACTURERS Increase in sales Mass communication Lowers production cost Promotes Brand – Image/ Goodwill Helps in facing competition Permanent Demand Helps in introducing new products Higher profits

3.Lowers production cost 1. Increase in sales 2. Mass communication 3.Lowers production cost

4. Promotes Brand- Image/ Goodwill 5 Helps in facing competition 6. Permanent demand

7. Helps in introducing new products 8. Helps in earning higher profits

BENEFITS TO CONSUMERS Convenience in purchase of products Advertising adds to the knowledge of consumers Products available at low prices Reminds consumers of essential things Better quality products Benefits of direct marketing and online marketing

1. Convenience in purchase of product 2. Increase knowledge of Consumers 3. Product available at low prices

4. Reminds consumer of essential things 5. Better quality products 6. Direct marketing and online marketing

BENEFITS TO DISTRIBUTORS AND SALESMAN Easy selling No need of advertising by distributors Increase in sales and profits Ensures regular sales Less price bargaining Selling new products

Manufacturer Salesman 1. Easy selling 2. No need of advertising by distributors Manufacturer Salesman 3. Increase in sales and profits

4. Ensures regular sales 5. Less price bargaining 6. Selling new products

BENEFITS TO SOCIETY Increase in standard of living Increase in employment Increase in national income Increase in exports Cultural advancement Encouragement to research and development

1. Increase in standard of living 2. Increase in employment 3. Increase in national income

6. Encouragement to research and development 4.Increase in exports 5. Cultural advancement 6. Encouragement to research and development

LIMITATIONS OF ADVERTISING Unbranded products Less believable message Inflexible and rigid Immediate feedback Product differentiation Size of target customers

IS ADVERTISEMENT A WASTE?

ECONOMIC OBJECTIONS SOCIAL OBJECTIONS

ECONOMIC OBJECTIONS

Increase in cost and price No Increase in Real Demand Restricts Entry of New Business Units Reduces Consumer Choice Further widens Business cycles Wastage of National Resources Creates Monopoly

INCREASE IN COST AND PRICE Increases Selling and Distribution Expenses Passed on to consumers and they become the ultimate Sufferers .

NO INCRESE IN REAL DEMAND

RESTRICTS ENTRY OF NEW BUSINESS FIRMS Huge advertising expenses by existing firms restrict the entry of new units. Brand Popularity of Existing Firms

REDUCES CONSUMER CHOICE Repeated Advertisements with emotional appeals. Consumers think of particular brands only.

FURTHER WIDENS BUSINESS CYCLES More advertising in boom period Further increases the sale in boom period Less advertising in depression periods Further decreases the sale in depression period

WASTAGE OF NATIONAL RESOURCES Advertising is not a productive activity. It is simply a wastage of resources. It makes appeal for discarding the existing goods well before their economic life.

Creates Monopoly Advertisement discourages competition and some bigger firms dominate the whole market. The existing small business firms cannot face competition because they cannot afford huge advertising budgets.

SOCIAL OBJECTIONS

Mislead consumers by showing Deceptive Advertisements Ads distort Culture Control of advertisers on Media Promote Materialism Bad Effect on Children Undermine the position of Women and Aged persons Moral Degradation Feeling of Insecurity Create Artificial Product Differentiation Other objections

Mislead Consumers by showing Deceptive Ads False Claims Conceal Material Facts Show only Brighter Side

Ads Distort Culture

Control of Advertisers on Media Media gets a major portion of its revenue from advertising. So, they readily show all types of ads without editing the deceptive, vulgar and indecent portions of ads.

Promote Materialism Ads lures the viewers to buy unnecessary things and they start demanding things which they cant even afford.

Bad effect on children Ads show vulgarity and violence which impact the thinking of children very badly and they start insisting their parents to buy the advertised products.

Undermine the position of women and Aged persons In advertisements women are mostly shown as housewives and not in the role of professionals. Similarly aged persons are shown as dependent, sick and helpless. It undermines their position.

Moral Degradation

Feeling of Insecurity Advertisements create a feeling of insecurity in the minds of persons who cannot afford to buy products.

Create Artificial Product Differentiation

Other Objections Posters, wall writings irritate the owners of buildings. Outdoor advertising using loudspeakers causes noise pollution. Excessive ads in between T.V programmes irritate the viewers. Outdoor ads , signboards, distract the attention of passerby giving birth to accidents.

IS ADVERTISING JUSTIFIED??????????