Carlo N.

Gualon

BSBA-MM 2-1P

ACTIVITY 2: Advertising Accountability

Advertising is viewed from two related perspective: (1) its economic role and, (2) its social and
cultural role in communicating not only product information but also social values. Explain.

The effects of advertising on the economic and sociocultural environment of society have
drawn attention. The creation, production, and delivery of advertisements are only a few of the
vocations related with advertising, which has significant employment potential. Marketing has an
impact on economic cycles. If advertising spending is planned wisely during difficult time
periods, it may have stabilizing benefits on the economy. When the economy is struggling,
spending a lot on advertising can act as a stimulus by boosting weak demand and generating
more money for the system.
Advertising is necessary in market economies to influence the degree of competition,
price, and demand for different items. Market growth may result from advertising. However,
there are some market circumstances when advertising actually reduces market competition and
makes it possible to charge a greater price for the product.
The use of advertising is scrutinized and, in some situations, even prohibited.
Sociologists and religious authorities have strong opinions against certain of advertising's effects
on influencing and propagating social values due to its persuasive character. Advertising is
accused for contributing to materialism, encouraging customers to purchase items they do not
need, fostering stereotypes, having an adverse impact on young children, and controlling the
media's editorial agenda.
Advertising is supported by those who work in the industry on the grounds that it just
reflects, not creates, the values of the community in which they reside. The socialization and
acculturation processes produced these values. The customer interacts with a variety of
surroundings, including advertising, which has a large presence.
As a result, advertisers are required to exercise restraint when using advertising or when
implementing specific advertising techniques. These concerns are generally ethical ones related
to the effects of advertising. In some circumstances, the use of advertising in any form is deemed
illegal, such as when people are encouraged to purchase goods like cigarettes, which are thought
to be potentially hazardous to their health, or when the purpose is to deceive them.