MANAGEMENT

Detailed explanation-1: -A prevailing view of the effects of brand advertising is that it raises prices by increasing the costs of manufacturers and by reducing the elasticity of demand they face, thus raising the advertising manufacturer’s price.

Detailed explanation-2: -It increases the cost of the products. To meet this expenditure, price of the product is raised. No manufacturer pays for the advertising expenses out of his pocket. Advertising, therefore, leads to unnecessary rise in prices.

Detailed explanation-3: -Expensive. One of the biggest disadvantages to advertising is that it costs money to market your business. Whether you take out 200 ads on cable or hand out fliers, you’re spending money that could be used to pay for inventory, rent, utilities and other business expenses.

Detailed explanation-4: -Advertisements influence our life to a great extent. Branded products are costly because they include the costs of packaging and advertising. It is therefore, many people cannot afford them. Those who manage to buy them feel exalted but those who fail to buy feel depressed.