Since, the world has metamorphosed into a global village the brands are aggressively competing with each other. The firms use a vast number of strategies to excel their sales revenue.there are a number of methods that can be used, among them low pricing and advertising plays a vital role.Although I acknowledge that there are concomitant benefits of low pricing.i would argue that the advertising strategy has significant advantages.
The most evident benefit of advertising is that it creates awareness among large swathes of people.it cultivates a sense of trust among people by endorsing brand ambassadors. According to a research conducted by the USA, everyday a average person Is exposed to almost one hundred thousand adversitement. Another advantages of advertising is that can transform a new customer into a loyal customer. Converting customers from one brand to another is of paramount importance for most of the brands.
In sharp contrast to this, low pricing Affects the quality of the product.In order to survive in the highly competitive marketplace a substantial amount of vendors sells their product at a lower price, Hence compromise their goods quality and quantity. For instance, to cope up with the market price potato chips have reduced a significant amount of chips from the packets. Moreover cutting the product prices mostly affects the small shops as they can not compete with the big firms in terms of price.
To sum it up, it can be said that, even though cutting prices plays a vital role in the selling a product the demerits are more in compared to advertising.