ZIMSEC O Level Business Studies Notes: Marketing: Benefits and drawbacks of advertising

  • Not all advertising is successful
  • In fact advertising does have its advantages and disadvantages

Advantages of advertising

  • It informs the customer
  • It is part of the competitive process and fights off the competition
  • It allows consumers/customers to make an informed choice
  • I can act as a guarantee of quality to the customer
  • It results in a reduction in other sales expenditure activities for example personal selling
  • It helps the customer/consumer identify the product a steer away from imitations
  • Helps to reduce sales fluctuations thus
  • Helps in planning production by making it more predictable
  • If done correctly it can lead to an increase in sales which
  • In turn allows for large scale production and economies of scale
  • It leads to an increase in market share
  • Enhances the image of the business
  • Helps explain why the customer/consumer needs a certain product

Disadvantages

  • It raises costs and
  • Therefore results in an increase in prices
  • Which are ultimately passed on to the customer thus reducing competitiveness in terms of price
  • It increases prices without adding anything to the value of the product
  • Fools people into buying products that they do not need
  • Can be used as a way of maintaining a monopoly within a certain market
  • It still can be misleading even though it is controlled by various authorities and laws for example it is easy to argue and prove words like the best etc
  • It can stimulates wants that cannot ultimately be satisfied
  • It reinforces stereotype e.g. women cook
  • Can lead to moral degradation
  • Influences the media e.g. editorials in newspapers tend to favour their advertiser above common sense or evidence

To access more topics go to the O Level Business Notes

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