The role of advertising in society - pdf 28

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Index
 
Introduction
 
Part I : General knowledge of advertising
1. Some typical concepts of advertising
2. Classifications of advertising
 
Part II : The role of advertising in society
1. Economic effects of advertising
a. On governments
b. On citizens
c. On businesses
2. Social effects
a. Good effects
b. Bad ones
 
 Part III : The role of Vietnam’s advertising industry in the economy
1. Present situation and contributions of Vietnam’s advertising industry
2. The changing responses of Vietnamese towards advertising.
 
 
Conclusion
 
 





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nt out that consumers may purchase material things in the pursuit of nonmaterial goals. For example, a person may buy an expensive stereo system to enjoy music rather than simply to impress someone or acquire a material possession.
Even if we assume materialism is undesirable, there is still the question of whether advertising is responsible for creating and encouraging it. While many critics argue that advertising is a major contributing force to materialistic values, others say advertising merely reflects the values of society rather than shaping them. They argue that consumers' values are defined by the society in which they live and are the results of extensive, long-term socialization or acculturation.
Advertising does contribute to our materialism by portraying products and services as symbols of status, success, and achievement and by encouraging consumption. As one said, "While it may be true that advertising reflects cultural values, it does so on a very selective basis, echoing and reinforcing certain attitudes, behaviors, and values far more frequently than others."
The extent to which advertising is responsible for materialism and the desirability of such values are deep philosophical issues that will continue to be part of the debate over the societal value and consequences of advertising.
Furthermore, a common criticism of advertising is that it manipulates consumers into buying things they do not need. Many critics say advertising should just provide information useful in making purchase decisions and should not persuade. They view information advertising, which reports price, performance, and other objective criteria as desirable. Persuasive advertising, however, which plays on consumers' emotions, anxieties, and psychological needs and desires such as status, self-esteem, and attractiveness, is viewed as unacceptable. Persuasive advertising is criticized for fostering discontent among consumers and encouraging them to purchase products and services to solve deeper problems.
Critics say advertising exploits consumers and persuades them to buy things they don't need. Defenders of advertising offer a number of rebuttals to these criticisms. First, they point out that a substantial amount of advertising is essentially informational in nature. Also, it is difficult to separate desirable informational advertising from undesirable persuasive advertising.
If advertising critics really believe that persuasive advertising should not be permitted, they are actually proposing that no advertising be allowed, since the purpose of all advertising is to persuade. Defenders of advertising also take issue with the argument that it should limit itself to dealing with basic functional needs. In our society, most lower-level needs recognized in Maslow's hierarchy, such as the need for food, clothing, and shelter, are satisfied. It is natural for people to move from basic needs to higher-order ones such as self-esteem and status or self-actualization. Consumers are free to choose the degree to which they attempt to satisfy their desires, and wise advertisers associate their products and services with the satisfaction of higher-order needs.
Proponents of advertising offer two other defenses against the charge that advertising makes people buy things they do not really need. First, this criticism attributes too much power to advertising and assumes consumers have no ability to defend themselves against advertising.
Second, it ignores the fact that consumers have the freedom to make their own choices when confronted with persuasive advertising. While they readily admit the persuasive intent of their business, advertisers are quick to note it is extremely difficult to make consumers purchase a product they do not want or for which they do not see a personal benefit.
If advertising were as powerful as the critics claims, we would not see products with multimillion-dollar advertising budgets failing in the marketplace. The reality is that consumers do have a choice, and they are not being forced to buy Consumers ignore ads for products and services they do not really need or that fail to interest them
a..2. To the product costs and prices consumers have to pay.
Critics argue that advertising increases the prices consumers pay for products and services. First, they say the large sums of money spent advertising a brand constitute an expense that must be covered, and the consumer ends up paying for it through higher prices. This is a common criticism from consumer advocates. Several studies show that firms with higher relative prices advertise their products more intensely than do those with lower relative prices.
A second way advertising can result in higher prices is by increasing product differentiation and adding to the perceived value of the product in consumers' minds. The fundamental premise is that advertising increases the perceived differentiation of physically homogeneous products and enables advertised brands to command a premium price without an increase in quality.
Critics of advertising generally point to the differences in prices between national brands and private-label brands that are physically similar, such as aspirin or tea bags, as evidence of the added value created by advertising. They see consumers' willingness to pay a higher price for heavily advertised national brands rather than purchasing the lower-priced, non-advertised brand as wasteful and irrational. However, consumers do not always buy for rational, functional reasons. The emotional, psychological, and social benefits derived from purchasing a national brand are important to many people.
Unfortunately there seems to be no single way to measure product differentiation, let alone determine how much is excessive or attributable to the effects of advertising...both price insensitivity and brand loyalty could be created by a number of factors such as higher product quality, better packaging, favorable use experience and market position. They are probably related to each other but need not be the result of advertising.
Proponents of advertising offer several other counterarguments to the claim that advertising increases prices. They acknowledge that advertising costs are at least partly paid for by consumers. But advertising may Giúp lower the overall cost of a product more than enough to offset them. For example, advertising may Giúp firms achieve economies of scale in production and distribution by providing information to and stimulating demand among mass markets. These economies of scale Giúp cut the cost of producing and marketing a product, which can lead to lower prices-if the advertiser chooses to pass the cost savings on to the consumer.
Advertising can also lower prices by making a market more competitive, which usually leads to greater price competition. Finally, advertising is a means to market entry rather than a deterrent and helps stimulate product innovation, which makes markets more competitive and helps keep prices down.
Overall, it is difficult to reach any firm conclusions regarding the relationship between advertising and prices.
In general, in the market-oriented economy nowadays, it can’t be denied that advertising plays an important role in society. Consumers can’t find what the market has without advertising’s help. Moreover, with the continuous development of science technology, consumers’ need vary much. Also, manufactures develop various products, which consumers feel free to choose to suit them best. Therefore, competition among manufacturers is getting more fierce and advertising plays a vital role in that competition. Another benefit that consumers gain from advertising is that it creates opportunities for them to actively decide whether that product suits them or not and save time looking for goods or services that they need. I myself think that advertising cannot increase the cost per unit of quality to consumers because if it did, consumers would not continue to respond positively to advertising. Advertising lowers the costs of information about brand qualities, leads to increases in brand quality, and lowers the average price per unit of quality.
On businesses
b.1. On businesses’ activities.in society
Firstly, to businesses which have products advertised, advertising is considered the bridge between them and consumers. It is the major factor to bring their products to the public. Appearantly, advertising is an excellent marketing tool for businesses. Let’s take an example: many years ago, many products are still very new to Vietnamese especially products imported from abroad, now it is advertising that brings them closer to Vietnamese customers. For example, Tiger-Carlsberg, Cocacola-Pepsi are all competitors in the market and their products have been very well-known in Vietnam due to their very successful advertising campaign. Whenever you feel thirsty or need drinks for a party you immediately think...
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