Regulating Advertisement in the World of Business-Economics

Regulating Advertisement
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Regulating Advertisement
Advertising is a significant activity in the world of business-economics. To popularize the product, the manufacturers have to go a step ahead to advertise the product. Business is always competitive in all aspects. Different products which serve the same purpose are available in the same market. How do consumers obtain information and make a choice on which product to use? It enquires persuasion of the consumers through advertisement. As the manufacturers try to draw as many consumers as possible to their products they might exaggerate on the information pertaining the product. At this rate, advertisement regulation is very necessary. There are various reasons for advertisement regulation. This paper will focus in analyzing the reasons that necessitate advertisement regulations.
Promote fair competition for the marketable products. Competition might lead to an advertisement which doesn't match the product quality. Due to the demand of a high number of consumers, the manufacturers might tend to give their products a high-quality perception which they are not worthy only to compete with other worthy products in the same market field. When the regulations are observed within the advertisement sector, every product is given its qualities as it has and therefore the consumers have their chance to make decision on the goods they would like to purchase. Fair competition will be enhanced as the consumers will be fed with the correct information pertaining the products. The manufacturers will be competing fairly (HG.org, 2014).
Another reason for advertisement regulation is to protect the consumers from the exploitation by manufacturers. Many manufacturers of competitive products might give the unrealistic details about the product to win the interest of many consumers. When the consumers purchase these products they don't serve the purpose they were intended to serve perfectly, they go on complaining to the associated marketing boards who deal with the products (Seidman, 2011). When there is a regulation on the advertisement, the consumers can rely on the information attached to a product during advertisement as it's correct. Manufacturers would not have any chance to exploit the consumers through fake advertisements which might attract the consumer towards purchasing the products. It also facilitates trustworthy between the producers and the consumers. If the manufacturers lie to the consumers at a point, they will purchase the product at that specific time but after that, they might quit purchasing the product after realizing its worthlessness. The manufacturers will then end up losing a large number of consumers which they could not have lost if they mai...