1. ANAL ROY - 22605012020,
ASHWANI KUMAR -22605012021,
SUSOMOY PAL -22605012058,
SUMAN SAHA -22605012065,
SHAMIM MOHAMMAD -22605012096,
PUJUSH KANTI PANJA -22605012105

2. CONTENTS
 WHAT IS ADVERTISING?
 IS ADVERTISING A WASTEFUL
EXPENDITURE???
 CONCLUSIONS
 REFERENCE

3. WHAT IS ADVERTISING?
 According to AMA (marketing point of view) - Advertising is paid form of non-
personal presentation and promotion of goods, service and ideas by an identified sponsor.
 (Communication point of view) - It is controlled identifiable information and persuasion
by means of mass communication media under clear sponsorship.
Each advertisement relating to the company products is based on a definite theme. It has a story to tell; it is
built on the solid and valid psychological principle of AIDA. A wise salesman studies not only the
advertisements of his company products but also those of his competition. Each advertisement studied
and compared, gives a stock of selling or talking points. The salesman is better placed, to position his
product or products in the minds of consumers or prospects.

4. YES, according various economist advertising is a wasteful
expenditure. The reason behind it are as follows:
 Rise in price of the product is very much related with
advertising.
 May diminish image of the firm, represent decline in the
product quality.
 Reduces profit margins, customers may stock up during
the promotion.
 Undermines the social value.
 Confuses the Buyers.
 Encourages sale of inferior products.
IS ADVERTISING A WASTEFUL EXPENDITURE ???

5. NO, according to many sociologist and economist, Advertising is very
much helpful and not at all wasteful expenditure. That’s why, we can see
in the present day that each & every business organisation is using
advertising program. The reasons behind this are:
 Advertisements are nothing but promotion of a product or service presented in a manner so as to
arouse potential clients' interest and generate a demand.
 Advertising helps people view the product in a more favorable light and may also modify the
demands (instead of buying a hatchback car, a person may buy a sedan after viewing its
advertisement).
 "Wasteful" is a broad term. What one buys in accordance with one's need is not wasteful. What
one buys but may not need immediately is not wasteful. And what one buys because he can and
wants to is not a waste (as per the person's perception).
 Most advertisements do not lead to wasteful expenditure. For the advertiser, an advertisement
may lead to higher sales and thus more profits. To a client, advertisements are a way to gather more
information about and interest in a product.

6. The advertisements not only modify the perception of a product, but also our
perception about what we want/need and hence do not lead to wasteful
expenditures.
 Balance between short term sales increase and long term need for desired
reputation and brand image.
 Attract customer traffic and maintain brand/company loyalty.
 Increase in economic activities and employment.
 Advertising can encourage consumption and foster economic growth.
Some other reasons that why advertising program are very helpful and
not at all wasteful.

7. CONCLUSIONS
Hence we came to the conclusion that, Advertising is very much helpful and not at
all a wasteful expenditure.
 Advertising is not a wasteful expenditure. That’s why we can see that each
and every business organization is using advertising program so widely to
promote their old and new goods and services.
 Advertising helps organization to increase their sales and thus leads to
more profit.
 Advertising helps people to choose correct product/service that will
fulfill their demand.
 It also helps to improve life style of people.
 Advertising impose positive effect on economic activities as well as employment.

8. REFERENCE
 Magazines on The Advertising Concept
 Magazines on Advertising [MARKETING AMERICAN ASSOCIATION]
 https://www.google.co.in/search?rlz=1C2CHWA_enIN637IN637&sclient=psy-
ab&site=&source=hp&q=is+advertising+a+wasteful+expenditure%3F&oq=is+advertising+a+wastef
ul+expenditure%3F&gs_l=hp.3...1812.20928.0.21352.42.33.0.0.0.0.0.0..0.0.msedr...0...1c.1.64.psy-
ab..42.0.0.A0EQcFx60KA&pbx=1&toJSON=undefined&biw=1366&bih=643&dpr=1&cad=cbv&sei=Fv1V
VZa4PM2eugSN0oG4Cw
 http://www.enotes.com/homework-help/advertisements-lead-wasteful-expenditure-give-your-
363796