Quote:
Originally Posted by ayush123
Agree with pooja on the point that advertisement does not increase the cost of goods,infact the cost of the goods decrese as a result of competition...
There are some exception like a big company who has a monopoly in the market and have control over the prices to some extent because of less competition can price the goods more than it should be,which in result can increase the cost of goods.......
Thanks
Ayush
fellow Aspirant
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would like to add some more points to the same
Advertising is a method of passing information to the end user.
Advertisements are of 2 types
-Direct
-Indirect
Direct advertising can range from tv ads to horadings to poster ads.
Indirect advertising would be word of mouth, etc.
Hence, advertising is a method of brand building for a company.
e.g. When going to a shop to a purchase mineral water, many of us ask for 'Bisleri'.
Thats called brand value. And such brand value can be built only with advertising a product to such an extent that there is negligiible difference between the part and the whole.
My take would be that advertisements do influence!!!
Whether it is positive or negative, lies on individual perception.
For e.g. When Bajaj came up with the Pulsar brand, its suepriority was shown by a sequence of stunts performed by riders.
During the initial days, there werent any disclaimers on these ads which termed that performing similar stunts may be risky. Many youngsters started purchasing Pulsars and performing stunts which proved fatal to some of them.
Taking note of the same, the government taking requested the company to add a disclaimer stating the risks. This disclaimer made the company realize the influence it had created on the youth and also the potential it had with such a range of bikes and we all know the result of the same.
Every choice made by us id due to some qualities in a product.
Highlighting such qualities, if present in a prooduct is the job of the seller.
Only by doing this can the company influence the consumer which not only educates him but also gives him the required knowledge to choose a product/brand.