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slenderaha Os conundrum Zt6lttr opp all advert Its no secret that advertising comes in for good dcaliof criticismisitiustlfledi To find out Laird OBrien hrterviewcd Professor HPooic from the School of Business Queens University Professor Poole answered questions about adver tising and how it affects prices competition economic waste and buying habits His objective comments are worth sending Proerror Poole invent the business worldlrrm both lira academic nerd practical rider For or number of years he was on Halal the University Alberto the University oMonitobnand Quernl University He Joined Custodian mrirertu orlnnirotion n1 rerrorch mono and inter wot WroPreridrnt and Morrow tour ddilrlilin aprncy Ilr It now Prorsrarofiiorinrrrot Queens Unirerrity Kioleton Question What are the major criticisms of advertisingon economic proundsl lllOP POOLE Well rirrtoiall think your ques ilon it too broad Mort economists Ind people who understand the workinpoi free enterprise market orlented ryrtem do accept the value of advrrtlainy Although the Cunidian economy is mixture of covemmentand private enterprise Indboth recilons use Idvertislnp think we can best cVIlurte adver tising by looklnp specically at its role in competi tive marketoriented ceouomy Questioor What do the critics say about Id rrrtislnpi PROF POOLE From In rcononrfe point oi view V8 Alittltlll Jiltlfld there are several crltlclsrru Advertising is wasteful for one That It raises priced That it crestes creel riva prots for tome companies and nukes ii dilll suit for new eornprnicr to enter the market Question Your first point was economic rrIste lsrtirrrtisinp rrrstefuli PROP POOLE if we Iceept that we are livinme barlcallyfroo enterprise economy there is inevitably some duplication Ind wute oiresourrer itbrppens in Idvenirlnr it rise happens when you tlrrd four par Iinlionr at one intersection On three depart ment stores in the same shopping plaza Or too many Icrrs devoted to wheat Any form of tree economy does have its write out there is Inotltcr ride to it the eonprritton be tncm companies encouraprr new product develop nrrnt improved quality better service free enterprise marketoriented rconomy is characterized by growth in other words it it dynamic economy it is marked by Innovation par ilculrrly in new product development Advertlslnl is used to lnformconritmerrahout there new prod train and their benets The imroductlon and accept rape of new products It essential for expanding markets and continued economic prowess ising Question lets look at it fronttite other end What would happen if all advcrtisinpwere climlnatedi PROF POOLE The editors nfibe lirrvrrd busi ness lleview asked the same question They iound ibrtiiii of businessmen did not think that elimi stating advertising would change tbb cost ofproda um lirrcI the crux of the probielliimoti people took at advertiying in isolation and blow it out of pro portion Thats mistake Advertisingis one fetter Ind frequently rather small rectorthat deter mines how product it sold In sciiinp tool like salesmen Iioredirplryr packages the type of store its said in Ind so forth Now toe some productslike cereals deterrents Indcosnziiurdirrtisiogmay be Iblpprrt oitbo celllnycort For otherssteel rods olliee fumliure rblp buildinrIdvcrilrinr is small part you eliminated odimislMrhl other relitny factor would play iorprr role But you probably would not chatty the tort structure rlpnyfrnntly Question Some people try that It we stop Ill Itlvcrtlslnp prices will no dorm liovr aboutiti PROP POOLE People can tools It television or 1islcn to the radio Ind ray Dir tanly theydrtap all tits adrertlrlvu coullpoy feta Put it doesnt work that way As IIid before adver tising isonly one factor in whet is called the fmrrket Inp min if you eliminate Idverilslny isnt it loplcal tiutrrrunufrcturerwlilhavs to add more salesmen or bulldbiyperstoredispiryror ndsomsoiberwryrtocom pilot Probrbly the new methods wouldnt be as effective Iiid they could be you costiyYou know when you break down the cori for each item roid advertising is really very inrxpcvuivr way to sell products Question What do you think of the Idea that advertising shotdd be controlled or restricted in some way PROP POOLE Remember thrt were taiklugI about basically free oompctliiva economy it we dont trust business people to use their Iellinp tools in the way they choosewithin the limits oftheirw iben we dont have free competitlva economy Inylonper And why ripple out advertlrlnri Why not con trol the number of rsietnten company can hAval Or the rise oi the air conditioning units in rtorel These Ire rcliing cotlr ion in fact tfwe infrian in the area oftdverlislnp is the neat step to tell oompany how much research it can dol Or that it must replace workmen with buudorerszhls line oilboupitl can lead tor lotof problems liowevcr not even the most ardent rupporlarroi advertising and free markets will say that there lrno Ibuse and that nothlnpsrn be improved Although werely mainly on oonipctltion to rcpulsle advertlo in some public policy may be necessary to control will the most iiaptani Ibuseriurt Is is door in other sectors oi the ceonomy1b6purefood 1sz Ira In armpit Question What About the Irzunsenl that lii vertislnp makes people buy things they dont ricedi PROF POOLE Now would you define the word moi You can say that all people really rrrrd it basic diet clothing and Ihcllrr Adverlirln doesnt moire people buy it infonnr per Iurder Ind broadens the area oi choice it encourages people to spend And it an oonrrpu people to rate if you look It the figures on advertising expenditures you will dad that various form of cavity Iio beiol promoted through advertis lnp good example is thovcampalgn for Canada Savings Dondt And remember something called the Edsel Mil lions were spent nnadvertlslngbut people still chose not tobuyii1hehturtanp on the otherhand on prert success because it filled thaneed of the day Advertislap cant reach into somebodys pocket Ind take the money it can only open up wider sreryofeholee And isnt that what our free market oriented economy is all about in the ion run you have to rely on consumers to make the right decision lfyou dont trust them toispcnd their owl money you dont haveInd euros dont want free market economy Question What do you esprit from Idtcr tisinp In the years phcrdl error Poona hope thi the industry by itself can weed out any Idvcrtirlnr that is deceptive or misleading Theyre workinp on this By Ind lrrpn its pretty roadbot there Ire tiill some offenders And hope that Idvcrtislns can be used to sell ideas well as products There is no doubt that advertising is powerful method of communica tion And In ctllcieuione in terms of cost Why cant we mardvrrtitlnplla experience Ind people to promote eonocpit ibat are imponsat front roelrl vlewpolnii im thinking of things like safe drivlnp Or re cruitment oi policemen nurses and social workers Even rrnderstrndlnp between nations Were seeing little of this now hope we see Ipood deal more of ii El NOTE Professor Poole hrs spiced to the reprint inp of his cements by the Canadirn Advertlrlny Advisory Board in the Interest etcrcatios better undetrtrndlnp oirdvcrilrinr Won the consumer can dosometblnpabout bsiilHfdvcrtlsinp cm rta or ourcopyo Hm AriIIIIilirtlSIypndaydh WI our The address is Advertisin htrndrrdr Council iii flay Street Toronto lid Ontrrlo fiend the booklet Keep it handy if mice In advertisement that you think breaks or seriously bends the ruler till insnd mall the complaint notice enclosed with the Code booklet Canadian Advertising Advisory Board we work for better advertising