Mostrando entradas con la etiqueta advertising. Mostrar todas las entradas
Mostrando entradas con la etiqueta advertising. Mostrar todas las entradas

martes, 18 de septiembre de 2012

How the mass media can contribute to economic and social development



Index
1.       Extract
2.       The great void
3.       The coercive power of law is not enough
4.       Main woes
5.       Advertising reflects the pattern of production and consumption
6.       Governments have the highest responsibility
7.       Most of the world’s population lives in poverty
8.       Underdevelopment, wealth and poverty
9.       Conclusions

1.       Extract
The mass media have a decisive influence on the collective behavior. They generate specific conducts and attitudes in most members of society.
Media are more powerful than guns. People obey the weapons because of their potential for destruction, its ability to cause death; in change, the mass media persuade and influence people decisions because their messages go directly to the conscience.  The weapons have an effect of coercion, the media an effect of persuasion.
Most people place great credibility to the media and are willing to take its direction. So, in the practice, the media has become an over-power, a power that is above all other powers in society.
2.       The great void
Until the 19th century the media had limited influence; books and newspapers were the main means. In the 20th century the situation changed dramatically, especially since the fifties with the massive spread of television. In the 90s the situation experienced another major change with the internationalization of television via satellite, allowing all citizens of the world to know when it happens elsewhere in the world, and now, with the power of Internet, which is the most advanced progress in information and communication.
In market economy countries that immense power of the media has been serving the market to stimulate the sale of products and services through advertising. The primary goal of advertising is to promote consumption; however, consumption does not mean development.
In the world there is a huge communication gap: the lack of campaigns to foster behavior patterns to stimulate economic and social development. Campaigns for teaching basic health standards, preservation of environment and nature, consumer education campaigns to not be a victim of unfair trade practices, are notably absent. In the recent years I have seen one exception: was in 2009 when there was the N1H1 flu epidemic. At that time, the Director of the World Health Organization, Dr. Margaret Chan, conducted a global campaign to teach the rules to prevent the spread of flu, which threatened to become a global epidemic; unfortunately, the campaign lasted only a few days.
3.       The coercive power of law is not enough
Without the cooperation of citizens cannot be full compliance with the laws and public policies. Therefore, the information policy of the governments and the information conveyed by the private media are essential elements for the proper development of society.
In today’s world, where there are already 7 billion inhabitants, laws and public policies, to succeed, must be accompanied by adequate information and communication policies through the mass media. Only through the media can reach as large number of people in the world, because the messages of the media now come to the most remote places on the planet. In the 60s began the revolution of the transistor, the small radio that had the most people in all countries of the world. That transistor revolution continues today through cell phones, the Internet, radio and television with global coverage.
4.       Main woes
In developing countries especially, there are situations that could improve significantly through public policies and development of campaigns to promote cooperation in the population: a) overpopulation, b) pollution in cities, c) forests destruction, d) pollution of water sources, e) population health.
I recently read that the major of a Chinese town began a campaign to teach its citizens that they should not spit in the streets. In a Latin American capital a major has developed a campaign to educate its citizens not to let their pets pollute the city streets; in some countries, private media also campaigning for environmental protection. But the efforts of these leaders and media are insignificant compared to the magnitude of the problems.
There is no national or international policy of sufficient broad and deep to address the problems of overpopulation, environmental or public health worldwide.
5.       Advertising reflects the pattern of production and consumption
Advertising does not change the pattern of production of society. Sells advertising that exist but does not encourage the creation of new products, other than those on the market. The most important for advertising is the brand promotion and competition.
What modifies the pattern of production and consumption of the society are the expectations of the entrepreneurs, who, in search of higher profits, create new products and employ advertising to sell their new products.
Education campaigns to protect the environment and the health of population are not developed by the commercial advertising because they are not business for advertisers, who focus its attention in the promotion of their brands.
6.       Governments have the highest responsibility
Governments have a greater responsibility in the promotion of the common good; therefore, governments should be the big promoters of mass education campaigns to stimulate social and economic development.
7.       Most of the world’s population lives in poverty
The distinction between rich and poor nations is not strictly truth because in the biggest rich nations most of its population is poor. But, obviously, the phenomenon of poverty is greatest in developing countries, which constitute more than two thirds of the world.
In developed nations, poverty is mitigated by the existence of social benefits that provide some benefits to the poor: food, medicine, shelter and in some cases, a little pension. In recent years those benefits are being eliminated or reduced in the most of the rich industrialized nations of Europe, such as Germany, Spain, France, Italy, Portugal and Greece.
8.       Underdevelopment, wealth and poverty
Underdevelopment is a cultural problem, a problem of lack or reduced formal education and citizenship education. In change, poverty is a problem of lack of material means of life.
A developed nation is a country which population has an adequate level of formal and citizen education and enough means of life. Underdevelopment is the opposite.
But a poor country can be developed, because development cannot be measured only in terms of material wealth but, simultaneously, in terms of the education of its people, especially in the education as citizens in respect of the basic rules of life and coexistence.
A country of great material resources which destroy nature and environment, which pollute the air, destroy forests and waters, cannot be considered a developed country; can be rich but not a developed nation.
9.       Conclusions
-          The media are essential tools for promoting economic and social development because of the magnitude of the world’s population: 7 billion people. The unique way to reach this vast population is through messages from the media. The campaign of the World Health Organization in 2009 is a good example. Through the mass media was transmitted the measures to prevent spread of H1N1 disease.
-          International organizations, United Nations, World Bank and the national governments should develop global campaigns to address major world problems: a) overpopulation, b) pollution in cities, c) destruction of forests, d) pollution water sources, d) population health. Only an effort of this nature can create conditions for achieving the Millennium Development Goals, MDGs.
-          Overcoming poverty requires a great effort not only material but a great deal of education for coexistence in harmony with nature and the environment and respect for the rights of the other human beings.

domingo, 26 de agosto de 2012

Is advertising a tool for economic growth?


Index
  1. Extract
  2. Tool of microeconomics
  3. Advertising modifies the qualitative structure of the market
  4. The market grows only if there is an augment in the income of the factors of production
  5. Effect on the nominal and real income
  6. Potential demand and effective demand
  7. Only the macroeconomics policies modify the market
  8. Advertising, economic growth, balance or recession
  9. Conclusions 
1. Extract
Many people think that advertising increases market size. That idea is logical because advertising augment the sales of products advertised, however, it really does not expand the size of market. Therefore, advertising is not a tool to reach economic growth, in terms of net accumulation of capital; in the following paragraphs is explained why.
2. Tool of microeconomics
One of the main goals of microeconomics is the study of consumers and businesses conduct to improve its behavior. The basic function of advertising is to present the choices of goods and services of the market; advertising, then, is a tool used by microeconomics to obtain one of their fundamental objectives.
3. Advertising modifies the qualitative structure of the market
Though advertising exerts a global effect on consumers it does not change the quantitative structure of market; hence we say that advertising is not an instrument for the economic growth in terms of net accumulation of capital.
Advertising modifies the qualitative structure of market because it forces competitors to improve their products. Competition embraces price, quality and quantity. Generally advertising is developed in a positive sense highlighting the advantages of products. Although there may be an implied comparison between products, advertising prevents a direct or negative mention of competitors. All these facts contribute to modify the qualitative structure of the market.
Consumers would not know the advantages or disadvantages of the products if there were no advertising.
4. The market grows only if there is an augment in the income of the factors of production
Without an increase in the remuneration of the factors of production it is not possible the market growth and vice versa: the market reduces its size only if occur a reduction in the income of the factors of production; this happen because of: a) the reduction of the public and private investment, b) the decline of the consumer spending and c) the augment of inflation.
Advertising changes the habits of consumption and the demand of goods and services. The market is comparable to a cake. The cake is divided in many parts. Ones part are big and other small. Advertising only modifies the size of the parts but the cake, as a whole, does not change by effect of advertising. For example, if a company advertises its products is very likely to increase their sales, but not due to market growth but because it has taken away customers from competitors, so that gain of an advertiser is usually due to the loss of its competitors.
Advertising can be compared with a zero sum game where some win and other lose.
May be that the market grows, in other words, that the cake increases its size but the only way is through the increased income of producers and consumers.
5. Effect on the nominal and real income
An augment in the remunerations of the factors of production represents other problem: the situation of the nominal and real income. When nominal income increases the real income tends to decrease, because the purchasing power is affected by inflation. So that it is necessary to take measures to diminish the effects of inflation after an increase of the nominal income.
6. Potential demand and effective demand
Advertising has other important economic effect: as a result of advertising, consumers know the products and services that exist in the market; sometimes they cannot buy products because they have not enough money; this is the potential demand. This becomes effective demand when people obtain the money to buy.
7. Only the macroeconomics policies modify the market
Only the big decisions of economic policy change the quantitative structure of the market; those policies are the monetary, fiscal and financial policies, the concrete policies of production in the primary and secondary sectors: energy, mining, agriculture and industry and the policies in the commercial and services sector.
But the most important policy is the policy of employment and wages; it determines the wellbeing of society. Without jobs and appropriate salaries there is not possibilities of social progress. The governments set the minimum wage and create incentives or perturbations to the generation of employment in the private sector of the economy, so that the attitude of the governments is key to increase the effective demand of the society.
Moreover, the governments, through the public spending are the locomotives of the economy. The public spending is essential for the collective wellbeing. The restriction of the public spending only brings more poverty, unemployment and less consumption.
8. Advertising, economic growth, balance or recession
Economic growth is the net accumulation of capital and is a consequence of new investment; economic growth is what creates new jobs.
The other economic option is the balance, the status quo, which is a result of the replacement investment.
Other economic alternative is recession, which is a consequence of the reduction of the volume of investment and consumption.
The investment in advertising has a special feature: advertising is made the same in times of economic expansion, balance or recession. It is obvious that in times of expansion the investment is most. However, still in the most adverse economic circumstances advertising stay in the market.
9. Conclusions
- Advertising does not increase the size of the market, its quantitative structure; therefore it is not a tool for the economic growth.
- Quantitative market structure augments only due to the expansion of the factors of production remunerations.
- On the contrary, advertising changes the qualitative structure of the market because it forces competitors to improve their products and services.