National College of Business Administration &

Economics Rahim Yar Khan

Management Sciences Department

ASSIGNMENT COVER PAGE

Subject Name Advertising
Course & Semester BBA (10th)
Assignment Number 03
Due Date --
Instructor Name Sir Abdul Hakeem

STUDENT INFORMATION
Students Name Usama Murtaza

 I confirm that I have read, understand & followed the guidelines for assignment submission
as discussed in class.
 I understand that if this assignment is submitted after the due date it incur a penalty for
lateness unless I have previously had an extension of time approved and have attached
written confirmation of this extension.
 I also declare that I have not given my assignment to any other student, so that I can be used
as a source of plagiarism.

Declaration of Originality: The work contained in this assignment has been carried out by me. I
understand that if this claim is found to be false, disciplinary action could be taken and penalties can be
imposed in accordance with college policy and rules against me.
Signature of Student & Date:

Usama

Grade &Feedback:

Signature of Instructor:
 7 Important Points

1) Advertising can have hostile effects on the minds of the people who see it. In an
advertisement the company is showing only the advantages of its products or services.
This entails a certain amount of dissatisfaction and unhappiness in the lives of the
viewers, because their self-esteem faces an attack as they are unable to use the product
and do not manage to look like the slim model on the advertisement.
2) As one of the many costs of doing business, advertising is indeed paid for by the
consumer who buys the product. In most product categories, though, the amount spent on
advertising is usually very small compared with the total cost of the product.
3) Advertising is one element of the mass-distribution system that enables many
manufacturers to engage in mass production, which in turn lowers the unit cost of
products. These savings can then be passed on to consumers in the form of lower prices.
In this indirect way, advertising helps lower prices.
4) In retailing, price is a prominent element in many ads, so advertising tends to hold prices
down.
5) National manufacturers use advertising to stress features that make their brands better; in
these cases, advertising tends to support higher prices for their brands.
6) Advertising actually restricts competition because small companies or industry
newcomers can’t compete with the immense advertising budgets of large firms.
7) High costs may inhibit the entry of new competitors in industries that spend heavily on
advertising. However, the investments needed for plants, machinery, and labor are of far
greater significance. These are typically the real barriers to entry, not advertising.

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