how does advertising affect businesses?

[James]

Pros:
Advertising informs the public about the product
It can convince consumers that their product is superior to rivals
It can eliminate competitors if you advertise more than they do
It keeps consumers aware and interested in your brand (some adverts don't even tell you about a product, like the Cadbury gorilla advert)
So basically the aim is to increase or sustain sales either by making you buy the product to begin with, or to make you buy more of the product.

Cons:
It takes time to prepare and hence
It costs money - this means higher costs and potentially lower profits if the ads dont pay off.
Advertising will be different in different places. For example, some words / phrases may be fine in the UK, but they may be offensive or dreary in China.

Advertising also affects society which is interesting. Some say it's bad, because it can manipulate customers and cause inferior products to be bought. also the cost of it means we all pay higher prices. Others say it's good and informs us about the products and helps us make better choices.