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Impact of add on consumer
This document discusses different perspectives on the impact of advertising. It notes that advertising creates consumer needs and promotes materialism according to critics, while proponents argue that it provides information, creates jobs, and encourages a higher standard of living. The document also examines the role of ethics in advertising, the effects of ads targeted at children, and debates around whether advertising encourages materialism or is a reflection of society. Additionally, it explores the potential for advertisers to control media and the role of advertising in the economy by fostering economic growth and encouraging consumption.
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Impact of add on consumer
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- 2. Advertising and PromotionViewpoints Creates consumer needs, wantsCreates consumer needs, wants Promotes materialism, insecurity, and greed Promotes materialism, insecurity, and greed More propaganda than informationMore propaganda than information Provides informationProvides information Creates jobsCreates jobs Encourages higher standard of livingEncourages higher standard of living Promotes competitionPromotes competitionProponent arguments Proponent arguments Critic arguments Critic arguments Helps new firms enter a marketHelps new firms enter a market
- 3. Ethics in Advertisingand Promotion Not all issues can be regulated Not all issues can be regulated A marketing or promotion action may be legal but not ethical A marketing or promotion action may be legal but not ethical Marketers must decide the appropriateness of their actions Marketers must decide the appropriateness of their actions Ethics: Moral principles and values that govern the actions and decisions of an individual or group. Ethics: Moral principles and values that govern the actions and decisions of an individual or group.
- 4. Advertising and Children Children'sTV Watching Behavior Children's TV Watching Behavior Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year Children ages 2-11 watch an average of 22 hours of TV per week and see 30,000 commercials per year 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants 80% of all advertising targeted to children falls in four product categories: Toys, cereal, candy & fast food restaurants
- 5. Perspectives on Adsfor Children Advocates Argue That Children:Advocates Argue That Children: Marketers Argue Children:Marketers Argue Children: Lack the knowledge and skills to evaluate advertising claims Lack the knowledge and skills to evaluate advertising claims Cannot differentiate between programs and commercials Cannot differentiate between programs and commercials Must learn through socialization Must learn through socialization Must acquire skills needed to function in the marketplace Must acquire skills needed to function in the marketplace
- 6. Social and CulturalConsequences Does advertising encourage materialism? Does advertising encourage materialism? Does advertising make people buy things they don’t need? Does advertising make people buy things they don’t need? Is advertising just a reflection of society? Is advertising just a reflection of society?
- 7. ..How is he?.... Mr Sharuk khanMr Sharuk khan Promoting his movie… on TV serials Promoting his movie… on TV serials After all this he earns above RS200 cr After all this he earns above RS200 cr
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- 9. Who all runBrand’s…..
- 10. Do Advertisers Controlthe Media? Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertising is the primary source of revenue for newspapers, magazines, television and radio Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Advertisers may exert control over the media by biasing editorial content, limiting coverage of certain issues, or influencing program content Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers Media’s dependence on advertising for revenue makes them vulnerable to control by advertisers
- 11. They must reportthe news fairly and accurately to retain public confidence They must report the news fairly and accurately to retain public confidence Advertisers need the media more than the media need any one advertiser Advertisers need the media more than the media need any one advertiser Media maintain separation between news and business departments “The Wall” Media maintain separation between news and business departments “The Wall”
- 12. ARE SOME ADDSBENIFICIAL……
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- 16. SO HARD WORKTHEY DO!!!
- 17. Role of Advertisingin the Economy Makes consumers aware of products and services Makes consumers aware of products and services Provides consumers with information to use to make purchase decisions Provides consumers with information to use to make purchase decisions Encourages consumption, fosters economic growth Encourages consumption, fosters economic growth
- 18. Economic Impact ofAdvertising Effects on Consumer Choice • Differentiation • Brand Loyalty Effects on Consumer Choice • Differentiation • Brand Loyalty Effects on Product Costs and Prices • Advertising as an expense that increases the cost of products • Increased differentiation Effects on Product Costs and Prices • Advertising as an expense that increases the cost of products • Increased differentiation Effects on Competition • Barriers to entry • Economies of scale Effects on Competition • Barriers to entry • Economies of scale
- 19. Summarizing Economic Effects Changeconsumers’ tastesChange consumers’ tastes Reduces competitionReduces competition Lowers sensitivity to priceLowers sensitivity to price Builds brand loyaltyBuilds brand loyalty Advertising Equals Market Power Advertising Equals Market Power Leads to higher pricesLeads to higher prices Leads to fewer choicesLeads to fewer choices Results in higher profitsResults in higher profits
- 20. Summarizing Economic Effects Providesuseful informationProvides useful information Pressure for lower pricesPressure for lower prices Increases price sensitivityIncreases price sensitivity Increases competitionIncreases competition Advertising Equals Information Advertising Equals Information Forces inefficient firms outForces inefficient firms out Pressure for high qualityPressure for high quality