Merits and Demerits of Advertising

Title: Merits and Demerits of Advertising

1. Meaning of advertising?
2. What are the merits of advertising?
3. Demerits of advertising.

See Also

• Advantages and disadvantages of television Advertising
• Also read: the advantages and disadvantages of Radio Advertising

Meaning of Advertising?

Meaning: Advertising can be defined as any paid form of non-personal communication which is directed to the customers or targeted audience true various Media in order to present and promote products, services and ideas.

Merits of Advertising

There are merits and demerits of advertising, here we take a look at the merits of advertising:

1. It helps in creating job opportunities: Advertising create job opportunities for people working with the advertising agencies and others.
2. Provides information about features: It helps the producers to explain the use, features and benefits of the product to the consumers.
3. Reduction of cost: The cost per unit of goods will be reduced thereby consumers will pay less.
4. Increase in profit: Advertising increases the profitability of an organization.
5. Higher revenue: The advertising firms also gain in terms of revenue.
6. Provision of information about existence of goods: Advertising provides information about the existence of a product.
7. Improvement in quality of goods: It helps in improving the quality of goods as a result of healthy competition.
8. Increase in production: Advertising can lead to increase in production as more goods will be demanded.
9. Creation of awareness: It helps in creating awareness of a product.

Demerits of Advertising

Here are the demerits of advertising

1. False and misleading: Some advertisement may be false and misleading as they make exaggerated claims.
2. It leads to Monopoly: Heavy advertising by a dominant supplier may restrict competition by preventing new entries to the market.
3. High cost: The high cost of advertising is passed on to the consumer in form of higher prices.
4. Irrational appeal: Advertising appeals mainly to the irrational motives in people.
5. Buyers can buy unnecessarily: Advertising encourages buyers to make unnecessary purchases.
6. Encourages to many brand: It can encourage too many brand names.
7. Wasteful: Advertising is wasteful in terms of resources.
8. Unhealthy competition: It can lead to unhealthy competition if an advertiser discredits the products of their arrivals.
9. Interference with consumers free choice: It interface with the free choice of consumers.

Quick Revision Question for Students

1. State five merits and demerits demerits of advertising.