Advertisng in a Market Economy

Who knew the advertising business plays such a huge role in the economy? After reading Alan Goldman’s, “The Justification of Advertising in a Market Economy” I find that this is true. One usually thinks of advertisements as being untruthful and annoying, but this is not always the case. Advertising is what leads consumers to want to buy from the market. Yes sometimes advertisements can seem to over exaggerate, which sometimes may lead to them sounding untruthful, but doesn’t it work? I know that for me personally after watching an advertisement at the very least it makes me aware of the product and brand. I may not always want to buy it, but I remember it. This is a huge goal of advertising agencies and businesses love that. I never realized how huge of impact on the economy advertisements have. Just think about it, pretty much every business has some form of advertisement. It could be something as simple as the yellow pages of the phonebook to having commercials on the most watched TV stations and billboards in several big cities. Advertisements that reach their goal of persuading consumers that they need to purchase a product is the next step for businesses to bring in revenue.
With the advertising agencies being so big they have the stress of reaching the most people in the best way. Advertisements need to be extremely careful when it comes to ethics. To be unmoral or unethical will ultimately lead to consumers turning away and a decrease in revenues. This is where advertising can be a problem. In wanting to reach the most people and make the most profit, sometimes advertisements can get a little “edgy”. Take the new health advertisements on cigarette packages. Some people may be offended that some health organization is trying to change them.

About these ads

4 responses to “Advertisng in a Market Economy

  1. I agree that advertisements tend to get “edgy” in order to get a reaction out of the public and consumers. With the cigarette advertisements I think they are trying to help the public, and those people who are regular smokers won’t care if that pictures is on there because they want to smoke anyways. Regardless of an advertisement people are going to choose what they want to do.

  2. I disagree with the previous comment to an extent. Cigarette companies do not want to blatantly advertise to the underage but they have to attract new users of their product. That’s why these companies glamorize their product to appeal to new users. By making someone feel that they will be more popular or better off socially by smoking the advertisement can confirm their thoughts and they will try smoking/chewing/drinking.

  3. I agree with you that advertisments tend to exhaggerate their product more often than not. Also, advertisment is vital to business now a days in attacking different ways to reach their target market whether it be on tv or through internet sites. Advertisment plays a majority in a business’s efforts to bring in revenue. However, I feel as though many times advertisments for some products don’t care to much about reaching their audience in an ehtical standpoint.

  4. I agree with the point that regarless of how unusual or seemingly pointless some advertisements can be, most do what they are supposed to do; get the attention of possible consumers. There are many products that would be unheard of without ellaborate advertising. For instance, not many people would have heard of the beer Dos Equis if it weren’t for their entertaining commercials, or a spring break trip to Mexico.

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