Advertising and Economy - V - Persuasion of Consumers

In such a situation, advertising becomes a major economic activity. More the advertising, faster the expansion of the market, profitable volumes of sales and recovery of investment in research and development. Another chain reaction. The nature of the economy in which such a situation prevails, though interrupted by increasingly longer periods of imbalance, has been described in study of USA's needs of resources by the 20th Century Fund: "In a scarcity economy the consumer needs no conditioning to make him want enough food to keep him alive, sufficient clothing and shelter to keep warm. But in an economy of luxury and plenty, the consumer has to be persuaded to want, for example, and electric blanket, with separate thermostatic control for each side of the bed, or and air-conditioned automobile with power steering and a hydraulic drive. This constant 'education' of the consumer to the smooth functioning of an economy which is geared to turn out a steady flood of new and different products as a are an adequate supply of electric energy and plentiful raw materials."

When discussing advertising and development, the focus naturally is primarily on the process of the expansion of wants. This is integrated with the process of growth, expansion and diversification of the economy of a country. Furthermore, one is also faced with the international horizontal and vertical expansion of the market.

Thus what takes place on a national scale in one country is replicated in other parts of the world. Advertising also develops different characteristics to suit each stage of this process of development, of the transition from one stage to another, both nationally and internationally.

To be continued...

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