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Surname 1 Name Instructor Course Date The Effects of Advertisement on the Economy Advertisement can be defined as the power

to persuade and influence the consumer to buy certain goods and services that are being offered in the mar et! Though differing from the above definition" institutional advertising is meant not to boost sales but to create a good appealing image for themselves! The other category of advertising" that can be classified as political advertising is used to solicit a vote or a contribution" and not purchase as it is for commercial advertisement! It is distinguished from salesmanship by the audience it is targeting #$agdi ian %&'(! The salesmanship is for one )one while advertisement is meant to reach a larger audience once! The advertisement industry in America has gone through many revolutionary changes using the many media technologies available" such as *adio" T+ and now the Internet! The earliest forms of advertisement were those in the 1,th and 1-th century when America by the $ritish colonies on the slave sales done in the colonial America by the $ritish! The change in the advertisement has been pushed by the changes in the business" media technologies and the cultural conte.ts! /ass production of consumer branded products witnessed from the mid0 1-thcentury led to improved advertisement that emphasi1ed on colorful" promising and dramatic advertisement!

Surname % In the 1,,2s many industries ranging from the soap" canned food to cigarettes industry" introduced new production techni3ues" and created standardi1ed products! They had to see and find buyers persuade them to by the goods! National advertising came up to cope with the advertising trends! Some of these firms include large departmental stores such as 4anama er in 5hiladelphia" as well as" New 6or #$agdi ian %&'(! American advertising has grown massively since the 1-%2s and presently advertising e.penditures are eighty times higher than the other previous decades! There has been a shift in the form of advertising" from attempting to sell mass products and services to undifferentiated consuming public to efforts to segment and target particular groups for the specific products and brands! Therefore" the paradigm shift in the advertising industry is segmented advertisement to the audience! Advertisement has many effects" starting with the consumer all the way to the economy and the society! The revolution in the advertisement sector has ensured that it captures the whole aspect of the person! 5eople are influenced on what to buy" how to dress and when to shop" the ind of sports to engage in" the movies to watch all the way to the ind of food to eat" and boo s to read! The children are not left out of this! They now what they can eat" the games they want to play" 7ust from the adverts aired on the T+" radio or the Internet adverts #$agdi ian %&,(! The same is instilled as they grow hence creating a monopoly of the brands they use in their daily lives! Advertising creates artificial product differentiation! 8ust li e in the case of food" one company for instance" Arm 9 :ammer will persuade their customers that the ba ing powder they manufacture is the best and yet in real sense it has no difference with the others in the

Surname ' mar et! They will do same through the branding and use of colorful adverts in the media maybe the form of moving pictures or the use of testimonials! /ost times" these adverts are untrue to boost their mass sales! In advertising0driven mar ets" products become similar to each other and are not differentiation! There is no variety in the products! Therefore" the consumer has to bear with the products available and is forced to consume what the media advertising claims to be the best! Since the companies will incur many costs for the advertising" this whole cost is transferred to the consumer" he ;she suffers the burden! This might lead to high prices of the goods! It is li e a private ta.ation on the side of the consumer for the price they pay to the monopolies for the goods they receive! This is because consumers are forced to pay more than what they are supposed to pay! This leads to poverty and poor distribution of wealth among the consumers #$agdi ian %&<(! 4hen monopoly is created in the industry" the industries that are termed as monopolies become price setters and control the mar et! This ma es entry of other firms in the same industry hard! They might also patent their products and since they control the mar et the consumer has very little say on the 3uality and the pricing of the goods he ;she is being sold! Advertisement also leads to uninformed mar et since the trends of the goods are left to the adverts hence many uninformed consumers! This is characteri1ed by the emotional appeals in the advertisement" testimonials and little emphasis on the testing and research development! It is a feature of meaningless ingredients in the product! This leads to price discrimination! The price becomes the inde. of 3uality" e.pensive products are assumed to be of good 3uality while the cheap ones are assumed to be of poor 3uality! There is no rational mar et place considering the segmentation of the consumers as per their e.penditure on the products they are willing to buy #$agdi ian %&<(!

Surname & $rands and loyalty to these brands has been created through the continuous advertisement! This advertisement captures all we want to hear about the product of our choice! This has been achieved using testimonials! =or instance" the advertisements that involve celebrities will always have those products sell in large numbers! As this loyalty is created there comes greater concentration the mar eting of the same product and to create a segmented advertisement to the targeted group of consumers! :yper0commerciali1ation has really affected the media the culture at large! /any media contents are rich of advertisements> these advertisements target different audience or group of consumers! The groups range from the teens" the children and the grown 0ups! =or e.ample" a lot of content about movies and computer games will be designed attract the teens and children while many shopping and travelling adverts will be put to target the adult and those with families! The consuming culture has been affected too" since many people have loyalty to certain brands" which is created through the advertisements! The advertisement has been e.tended to the boo s also sold! =or instance" children?s boo s will have advert images of the companies that sell different products such as the food and cars" games" and movies! The children familiari1e with these products at an early age and learn to create that consumer loyalty to such products! The content on the media has also changed to suit the advertisement! =or instance" T+ channels such as Nic elodeon carry adverts from motor manufacturing companies such as =ord! These children influence the buying effects of their parents because when they familiari1e with these products" they tell their parents what to buy! In addition" they grow up with loyalty for the brand! 4ith the above stated effects of advertisement on the media and the society" advertisements might end up dictating what we consume! Consumer sovereignty will be lost and will be slaves to the products! Consumer education should be done massively to create

Surname < awareness and freedom among the consumers! There should be enforcement of 3uality on products and the products should not be charged on the price inde. as the 3uality! The governments should also ta e an active role in the regulations of the advertisement to avoid misinformed or uninformed mar ets in our economies! These and other regulations will help deal with the effects of advertisement on the economy and the society!