Positive Role of Advertising.
Advertising has played a critical role in the development process by creating a demand for consumer goods and raising living standards of the Indian population. It is not completely irrelevant or luxury consumption oriented, as generally accused. A substantial amount of advertising is done to promote capital goods, services, socially desirable values, etc. Advertising has definitely played a role in rural and urban development. Yet, a lot needs to be done.
Advertising can playa very important role in a developing economy like India. While excessive spending (promoted through advertising or otherwise) is undesirable in this capital scarce country, advertising can promote saving habits. Advertisements done by banks, financial institutions, etc., do precisely that. Likewise advertising can promote exports.
Lastly, advertising can also spread literacy, health awareness, etc.
Role of Advertising for Consumers.
Consumers stand to gain through advertising in a number of ways:
1. Guide to prospective buyers: Advertising is an instrument of information and persuasion. The informative role of advertising consists in provision of information about products, features, functions, specifications and prices to prospective buyers. Due to ignorance (minus advertising), they may purchase an inferior product, pay higher prices, or worse still, may not even know the variety of products that exist.
2. Elimination of unnecessary intermediation: By advertising the goods, a manufacturer comes in direct touch with the consumers. Banking upon this information, the manufacturer can directly sell to the customers. The number of middlemen, whose margins increase the price for the consumers, is consequently reduced.
3. Better quality goods and cheaper prices: Advertising ensures better and improved quality of goods to consumers, at cheaper rates since (a) advertised goods promise a certain quality which has to be maintained, (b) mass advertised goods are...