Disadvantages of Advertising

A business produces goods for selling them at a profit. In order to stay in the market and earn profit, it does not use one simple tool or instrument for pushing its sales. It unites a set of strategies to grasp profit through customers’ satisfaction. It has been universally accepted that advertising is an important tool of marketing of products.

It has been universally accepted that advertising is an important tools of marketing of products. The expenditure on advertising is regarded as a profitable investment. In today’s fast world, advertising is considered a much more effective, widespread and less costly method of establishing contact with the customers. It is now an essential part of our enterprise system. Advertising is an art of influencing the customers through paid non personal presentations to purchase and posses a product. It can also be defined as “any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”.

An effective advertising brings about a rapid change in the habits, attitudes of the people. It increases the sale volume of goods, which enables the advertisers to produce goods on a large scale. Advertising thus provides employment to a large number of workers and raises their standard of living. The expenditure on advertising is regarded as a profitable investment. Advertising is not an unmixed blessings, it has certain demerits. The main demerits of advertising to manufacturers, consumers and the society are as follows:

Burden on the consumers

The introduction of new commodities, change of designs in dresses etc, affects the minds of the consumers. They are attracted to purchase the new items of consumption to remain in the set of ultra modern people. It is thus, a waste of expenditure and a burden on the consumers.

Causes unhappiness

Advertising causes unhappiness and dissatisfaction to those people who cannot buy the new products introduced through advertising. They in order to purchase the new things often adopt unfair means for raising their incomes.  

Economic waste

One of the major arguments advanced against advertising is that it leads to economic waste. The advertisers invest huge amount of money on publicity or their products which becomes a part of the cost production. The consumers, therefore, ultimately bear the advertising cost.

Producers to not lower the costs per unit

Production of products on large scale definitely reduces the cost per unit. When a company builds up a reputation of its product, it does not usually lower the prices. The manufacturer thus enriches at the expense of the consumers.

Restricts competition

The effective advertising by a few firms in the same line of production discourages the entry of new firms in the industry. It thus restricts competition and creates monopoly.

Sovereignty of the consumers

The sovereignty of the consumers is greatly destroyed by the various media of advertising. The consumers purchase the products what the manufacturers have produced for them. They cannot get the goods made to order by the big firms.

Truth in advertising

The advertising sometimes gives misleading picture of their products. The misrepresentation, falsehood, deception in advertising is a cheating of the innocent customers.  

If we rationally compare the merits and demerits of advertising, we will find that its economic effects outweigh the harmful effects. Advertising is in fact a driving force a every business and has led to the expansion of total market, reducing the cost per unit and has a great education force.