Merits of Advertisement

•  Economy : 

Advertising is a very economical mode of communication, if large number of people are to be reached. Because of its wide reach, the overall cost of advertising gets distributed over numerous communication links established.

• Mass reach : 

Advertising is a medium through which a large number of people can be reached over a vast geographical area.

• Enhancing customer satisfaction and confidence : 

Advertising creates confidence among prospective buyers as they feel more comfortable and assured about the product’s quality and hence feel more satisfied.

• Expressiveness : 

With the development in art, computer designing and graphics, advertising has emerged as one of the most forceful mediums of communication. With the special effects that can be created, even simple products and messages can look very attractive.

• Information : 

Advertising is a means of communication which provides information to consumer about available goods which can satisfy their needs.

Demerits of Advertisement

• Less forceful : 

Advertising is a non-personal form of communication. It is less forceful than personal selling as there is no compulsion on the prospective buyer to pay attention. 

•  Lack of feedback : 

The evaluation of the effectiveness of advertisement message is very difficult as there is no immediate and accurate feedback mechanism of the message that is delivered. 

•  Inflexibility : 

Advertising is less flexible as the message is standardised and is not tailor made to the requirement of different customer groups. 

• Inferior goods : 

If the commodities are of inferior and cheaper quality, they can’t sustain in market through advertising. Such goods of low / inferior quality can be sold only for once in the market. Through false advertising, such goods can’t be sold for long in the market. 

•  Not suitable for goods having inelastic demand : 

Those goods whose demand does not change along with the change in their price are said to have inelastic demand. So, goods whose demand is perfectly inelastic, their demand / supply can’t be boosted by advertising.