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Its no secret that advertising comcstn for good deal of criticism lslt Justified To tlnd out Laird OBrien interviewed Professor HrPooIe from lilo School of Business Queens University Professor Poole answered questions about ndvet tislug and how It affects prices competition economic waste aiid buying habits His objective comments are llOliil reading froruns lonie lnnws Iiir inulnrsr worldInns halls the academic and prstclicrtl aidrr Iiirt number it years Ire not on claim the University t7 Alberto the University Manitoba and Queens University He Inlned Canadian rnuririing orgiutlrntion or research ntrtnrigrr anil luler out llcelrerlilrnt nnil Mnnugrr is inrpe adornring arrtry Is It now Pretenderfluentsz uI anrnr University Kingston Question What are the major crltlrlvnn oi advertisingon economic grounds PROFPO0LE Well first ol nil thinkyour ques tion is toobrotd Most economists attd people who understand thenorkingofa frcecnterprlrc mnrket orlenled system via accepttlle value of advertising Although the Canadian ccononry Is mixture of governmentandnllttltccnlerprlinttdbothsectionl use Idvcnislngi think we can best ctnluitle udtch thing by looking specifically at its rolo in Cnillpcil tlve marketoriented econonty Question What do the critics any attonl ad tertlsinpl PROI POOLE From an rtvniontir point of view these use Imlli criticisntsitdtctilslng Ir oastcful lororleTh1t It raises prices lltal It creates execs site profits let some companies and rnsites it dilll wit lot new companies tocntci the market Questions Your first point has economic natte is adtrrttslng nestefull lllOl POOLE If ncacccpt that we pro living Ina basically free enterprise economy there Is inevitany tontcduplicntlonandwaltnolrcsoureesdthappem In advertising it also happens when you dad lour gas stations at one Intersection Or three dcpatb local stores in the some shopping plans Or too runny acres devoted to wheat Any form olfree econotuy does have its waste but there It another side to It the competition be tween roinpnnltr enronrnyrs new proillief develop trieni lnytritrrtigtiulii hrlrr strain free enterprise Marteloriented economy is characterised by growth in other words It is tlynnntle economy It merited by innovation pat llcuiutly In new product development Advertising is used to Inf nrnt consumers about these new prod ttcts andthclr tcnciltslitc Intyoductlon and accept unce at new product It essential for expundlng markets and continued economic progress Qtieatlont Lelia look at II from the other end What would happen if all adronising srere eliminated anon room The editors of the timid nun yncst Review asked the nine question They found that 813 of busincuntrn did not think that elimi nating advertising would change the cost olprod both lleret the crust til the problem most people look at advertising in isolation and blow It not ol pro portion Thats mistake Advertising is one factor and frequently rallversmall factorthat deletv rained how product is soldlta telling tool like salesmen store displays ruttrues the type ofstore Its sold In and so forth Now let some productslitre cereals detergents and cosmeticsadvertising maybe big pan of the telling cost Forblhenalcclrods ofilca fumiturc ship buildingadvertising la entail part ton eliminated dtttlllsIMIlrf uiltrr selling factors would ploy larger role lint you probably Millll nor chainI the tort alrlsrltltl rUntfrmniy Question Some people say that if we stop all advertising prices will go donation about It the most illle abideslust as Is done in other sectors of the economy The pure food laon are an csasnple Qoesllone What about the argument that ad vertising makes people buy things they dont need lltOl POOLE How woold you dene the word need You can say that all people really nerd is basic diet clothing and shelter Advertising dooml roots peapte bray It informs per ruades and broadens the steaolcttokellenoourages people to spend And it en ionorseea people to save it zyou look at tho iterates on advertising expenditures you will kind that various lorrrts of saving are being promoted thrwab Idvenls tan good evampla Is the campaign for Canada Savings hoods ltnd remember something called tho Marl hlih lions were spent on advertising but people still chose not to buy ltlhe blustana on the other handwas nnor POOLE People can look television or us outsumbmvn it hdthmdnilhe tar listen to the radio and say 0h only thryilsiepr oil the advertising conhlpay less but It doesnt potletitat way Its said before adver thing is only one factor In what is called the market lng min If you eliminate advertising isnt ll logical thatnmannlncluscrwiiihulo to add more raictmen or buildbiggerttorcdispiaysor tindrameotherwaystncom petel Probably the new methods wouldnt be as effective and they could be more costly You know when youbreetlc down the cost for each item sold advertising is really cry Incrprlulre way to sell products Question What do you thinlt ol the idra that advertising should be controlled or rcstrletcd in some way 1R0i POOLE Remember that were talking about is basically free competitive economy It we dont trust business people to use their selling tools In the way they choosewithin the limits at the law lhcn no dont have free competitive economy stay longer And why single out advertisingl Why not con trol the number of salesmen company can hnlel Or the rite of the air conditioning units In slant these are selling costs too In fact lfwe lnlrlnga in the area of advertising Is the nest stepte tciilcompony how much research it can do Or that It must replace workmen with hulldoserstlhlt line of thought can lead to lot of problems However not even the most ardent sopportcrsol advertising and free ntarkrts will say that there lsao abuse llltil thnl nothing can be Improved Although we rely mainly noeontpetillon to tcgutule advertis tng some public policy may be limitatle control Advertising cant teach late soraebodya pocket and lake the money item only open up older ares ofchoiccAttdlsnlthatwltatottrltre nurlrel oricntcd economy it all about in the long run you hate to rely on consumers to mate the right decision if you dont trust them torapend theirovia moneyyou dont bateand guess dont want free market economy Question What do you expect from adver lining in the years ahead PROF POOLE hope that the Industry by lteell can weed out any advertising that Is deceptive or misleading Theyre working on this By and latgs in pretty goodbut there are still some olfandets And hope that edvertistng can be used to sell Idrns at well as products There Is no doubt that advertising Is powerful ntethod of obmirnnsih lion And an elclent one in terms of coal Why cant we usetdvcttitingits experience and people to promote concepts that are important from social vlewpoinlt Im thinking of things litre snfodriving Or se cruilmeot of policemen outset and social workers Even understanding between nations Were seeing alliltIEolthis newt hope we see gooddcslmero it NOTE Professor Poole has sgrccd to tho reprint Ing of his comments by the Canadian Adtcrtislng Advisory Board In the Interest of creating better understanding of advertising You the consumer can do something about hadadtertlslng Write let your copy of the industrys Code of Advertlslrty Standards The address tr Adtcttislng Standards Council It itsy Street Tomato ltf Ontario llcad the booklet Keep it handy lfyou ace an advertisement that you think hrcails or seriously hcndt the rules nil in andmalitltecomplaint notice enclosed with the Code booklet Canadian Advertising Advisory Board we ninth lot better advertising din denote indistinct tincoe couNtv nines THE EXAMINER