ADVERTISING - PROS AND CONS

There is probably no more universal slogan than "It pays to advertise." Today, advertising has been
regarded as an inevitable accompaniment of a free competitive economic system. One major function of
advertising which has been stressed time and again is that it helps provide useful information to
customers. Advertising, having aroused consumers to buy the product, is thus responsible for mass
production (making goods available in mass quantity that enables manu- facturers to reduce their unit cost
of production, the advantage of which is passed on to the consumers) and, of course, the consequent rise
in the peoples standard of living.
The success of persuasive advertising is evident that consumers are not sure of what they want. If they
were aware of their wants, they would express them in the marketplace in the form of effective demand.
The things thus demanded would be the things which producers would then proceed to supply. But that is
not what happens. With the advent of production on a large-scale in anticipation of consumer demand,
producers have been put under increasing pressure to force a market so as to enable them to maintain
maximum output and reduce the cost of production per unit. The producers' unexpected success in
directing consumer demand into channels most profitable to themselves has resulted in the development
of a major industry involving thousands of copywriters, layout men, printers, lithographers. high-pressure
salesmen, and commercial artists. "
consumers to take positive action, that is, to buy the advertised product or service.
Media - the medium used to reach the target customers.
Money the amount of money that is appropriated for adverti-
Measurement testing the affectiveness of advertising.
Hand in hand with the AIDA concept of advertising (attention, interest. desire, and action) is another
related concept which involves interrelated stages in the communication process designed to achieve the
ultimate goal of advertising, that is, persuading the customers to act. These stages are:
Awareness. The prospect must be made aware of the brand or product.
Comprehension. The prospect must comprehend what the product is and what it will do for him.
Conviction. The prospect must arrive at a mental disposition or conviction to buy the product.
Action. Finally, the prospect must take action.
Such stages may be termed as the ACCA concept.
As manufacturers are able to sell more of their products because of advertising, among others, they are
prompted to think of producing other goods not yet available in the market to better satisfy the unex-
pressed desires of consumers. For this reason, modern industry is making use of research. Industrial
laboratories are continually dis- covering, patenting, and marketing new devices for satisfying hu- man
wants. However, advertising as aid to technical progress is over- shadowed by advertising as a
competitive weapon and as a correlative of mass production.
Not with standing the advantages obtained from advertising, there are those who raise knitted eyebrows
doubting the truth of such claimed advantages
In seeking an answer to the question as to whether advertising helps consumers, it must be recognized
that the real purpose of advertising, according to its critics, is "to benefit producers rather than consumers
While the ultimate costs of advertising may be borne by consumers, the immediate cost is borne by
producers. As the critics constantly state, the producers are not in business for altruistic pur- poses but
rather their main objective is to make all possible profit. Advertising has been found a useful means of
accomplishing that end Any benefit which consumers derive is incidental to the main purpose. so critics
claimed..
Another complaint directed against advertising is that in some in- stances, it is deceptive. It is argued that
instead of supplying consum- ers with useful and reliable information advertising is obviously bi- ased.
Also, in not a few instances, advertising is based on its tendency to corrupt the public's desires. A good
example is that of advertisements of cigarettes and liquors. The advertisers are unmindful of the welfare
of the public. Their main concern and interests is for most people to patronize their products.
Jokingly, Fred Allen in "Treadmill to Oblivion" said that advertis- ing is 85% confusion and 15%
commission."
Economic Effects of Advertising. Notwithstanding the criticism directed toward advertising as being
wasteful, nevertheless, no one can deny of its beneficial effects, such as:
a. Creating product awareness and interest. Before we turn to a consideration of the social and cultural
aspects of advertising, let us

FAIR TRADE CODE FOR ADVERTISING AND SELLING

Alarmed by the many complaints aired by the public with respect to advertised goods they have
purchased and in efforts to protect them, the Association of Better Business Bureaus in the United States
has published a "Fair Trade Code for Advertising and Selling " The Code urges advertisers to:
1. Serve the public with honest values.
2. Tell the truth about what is offered.
3. Tell the truth in a forthright manner so its significance may be understood by the trusting as well as the
analytical.
4. Tell customers what they want to know, what they have a right to know and ought to know what is
offered so that they may buy wisely and obtain the maximum satisfaction from their purchases.
5. Be prepared and willing to make good as promised and with- out quibble on any guarantee offered.
6. Be sure that the normal use of merchandise and services of- fered will not be hazardous to public health
or life.
7. Reveal material facts, the deceptive concealment of which might cause consumers to be misled.
8. Advertise and sell merchandise or service on its merit and refrain from attacking your competitors or
reflecting unfairly upon their products, services, or methods of doing business.
9. If testimonials are used, use only those of competent witnesses who are sincere and honest in what they
say about what you sell.
10. Avoid all tricky devices and schemes such as deceitful trade- in allowances, fictitious list prices, false
and exaggerated comparative prices, bait advertising, misleading free offers, fake sales, and similar
practices which prey upon human ignorance and gullibility.