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44.        The speaker claims that high-quality ads can sell almost anything, and that
companies should accordingly invest heavily in such advertising. I agree that the quality
of an ad can in some instances play a pivotal role in a product's success or failure in the
marketplace. However, the speaker over-generalizes, for advertising is far more critical
in some businesses and for some products than for others.
      Certain types of businesses benefit greatly from investing in high-quality
advertising. Fledgling companies, for example, may require an extensive top-notch
advertising campaign to achieve the name recognition that older competitors already
enjoy. Even established companies may need an expensive ad campaign. When
introducing new products or venturing into new markets. Companies selling products
that are no utilitarian value perhaps stand to gain the most from an extensive high-
quality advertising effort. Consider, for example, the kinds of products that are marketed
by means of the most extensive and expensive advertising: beer, cigarettes, soft drinks,
and cosmetics. None of these products has any utility. Their success depends on
consumers' fickle tastes, their emotions, and their subjective perceptions. Accordingly,
influencing consumer attitudes through popular and appealing ads is about the only way
to increase sales of such products.
      In some industries, however, substantial-investment in high-quality advertising
simply does not make sense from a cost-effectiveness viewpoint. Pharmaceutical
companies, for example, might be better off limiting their advertising to specialized
publications, and focus instead on other kinds of promotional programs, such as the
distribution of free samples. And widespread, flashy advertising would probably have a
limited effect on overall sales for companies such as Deere and Caterpillar, whose name
recognition and long-standing reputations for quality products are well established and
whose customers are unlikely to be swayed by sensational ads.
      In sum, the speaker over-generalizes. Not all companies have an equal need to
invest heavily in high-quality advertising. Companies with new products and products
that have little utility stand to benefit most from expensive, high-quality advertising.
But other companies, especially those whose customers are businesses rather than
consumers, would be better off focusing on product quality and reputation, not on
sensational advertising.