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Submitted By sahi
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Costly FunctionsThe strong objection and arguments against the advertising is that it is a costly function. It is generally criticized that the cost of advertising to too high and that such high cost is covered by the selling price of the advertising goods. Advertisement is considered as an indirect cost which is added in the distribution expenses. When expenses are to be increased, the selling price of the products will also be enhanced. It is true factor because large advertisers spend thousand of Rupees for advertising in a week. In one study it is found that advertising cost exceeded 6% of sales. It means that consumers will have to pay higher prices of the advertised products. But if the goods were not advertised the cost of advertisement cannot become burden on the consumer. Thus the unbalanced advertising may cause certain goods to cost the consumers more than they should. So it is regarded as an economic waste.

Misleading claims

Some advertisers cleverly create a misleading impressions of their goods. They present a very rosy picture of their products, before the consumers with the object of increasing their sales.

Encourage monopoly

Advertisement restricts the competition among the products. Big industrialists and manufacturers may exercise their monopolistic control over the market with the help of advertisement technique which is always against the public interest.

High prices

It is undoubtedly true that effective advertising increase the sales volume. This increased sale will require more products. Thus the large scale production brings down the cost of goods per unit due to economies in various sectors which reduces the consumes selling prices. But the producers do not lower the prices and the burden of advertising remains on the shoulders of consumers.

Disconnection of business

Small firms cannot properly

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