1. 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?

2. INTRODUCTION

3. ECONOMIC IMPACTS OF ADVERTISING

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

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

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

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

8. EFFECT ON COMPETITION
Promotes competition

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

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

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

12. EFFECT ON EMPLOYMENT

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

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

15. SOCIAL ASPECTS OF ADVERTISING

16. 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.

17. 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

18. 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.

19. 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.

20. 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.

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

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

23. 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.

24. Wrong advertising appeals
Sex appeal
Fear appeal

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

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

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

28. BENEFITS / IMPORTANCE OF
ADVERTISING

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

30. 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

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

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

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

34. 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

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

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

37. 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

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

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

40. 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

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

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

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

44. IS ADVERTISEMENT A WASTE?

45. ECONOMIC OBJECTIONS
SOCIAL OBJECTIONS

46. ECONOMIC OBJECTIONS

47. 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

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

49. NO INCRESE IN REAL DEMAND

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

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

52. 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

53. 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.

55. 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.

57. SOCIAL OBJECTIONS

58. 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

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

61. Ads Distort Culture

62. 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.

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

64. 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.

66. 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.

68. Moral Degradation

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

71. Create Artificial Product Differentiation

72. 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.

73. IS ADVERTISING JUSTIFIED??????????