(a) Explain five reasons for which manufacturers advertise their products. (b) State five reasons for the continued criticism of advertising.

(a) Five reasons why manufacturers advertise their products

1. To create awareness: Advertising informs consumers about the existence of a new product or an improvement to an existing one.
2. To increase sales: By persuading more people to buy, advertising expands demand and boosts the volume of sales and profit.
3. To create and retain a market: It helps the manufacturer to win new customers and keep existing ones loyal to the brand.
4. To meet or beat competition: Advertising helps a firm to distinguish its product from those of rivals and to hold or increase its share of the market.
5. To build brand image and goodwill: Continuous advertising creates a favourable image and reputation for the product and the company.

(Also acceptable: to educate consumers on how to use the product, to introduce the product to new markets.)

(b) Five reasons for the continued criticism of advertising

1. It increases the price of goods: The heavy cost of advertising is added to the selling price, so consumers pay more.
2. It is often misleading and deceptive: Some adverts exaggerate the quality of products and make false claims that mislead buyers.
3. It encourages wasteful spending: It persuades people to buy goods they do not really need, encouraging extravagance.
4. It can be offensive or immoral: Some advertisements are indecent, exploit fear or sex, or offend cultural and moral values.
5. It promotes harmful and monopolistic tendencies: It may glamorise harmful goods such as tobacco and alcohol, and heavy advertising by large firms can drive out small competitors.