(a) Advertising:

Advertising may be defined as “any paid form of non personal presentation and pro-motion of ideas, goods or service of an identified sponsor”. 

(b) Merits of Advertising

Merits of Advertising 

1. Advantages to Manufacturers and Traders

(1) Advertising helps in introducing new products. 

(2) It stimulates the consumers to purchase the new products.

(3) Advertisement helps to increase the sales of new and existing products. 

(4) It helps to increase the goodwill of the rm.

(5) It helps to face the competition in the market. 

(6) It increases profit of the firm through large sales.

2. Advantages to Consumers 

(1) It helps the consumers to know about the various products and their prices. 

(2) Consumers can purchase the better products easily. 

(3) It helps in maintaining high standard of living. 

(4) It educates the consumers about the various uses of products.

3. Advantages to the Society 

(1) Advertisement helps to create more employment opportunities. 

(2) It provides an important source of income to the press, radio, T.V., etc. 

(3) It is a source of encouragement to artists.

(4) It plays an important role in economic development of the country. 

(5) It reduces number of middlemen and consumers get quality products at lower cost.

Disadvantages / Objections to Advertising

(1) Advertisement encourages consumers to buy unwanted goods.

(2) Most of the advertisements are misleading. 

(3) Advertisement may lead to monopoly of a brand. 

(4) Advertisement is a costly affair. So, ultimately it increases the price of the product. 

(5) Advertisement persuades people to purchase even the inferior products. 

(6) It undermines social and ethical values.