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January 03, 2004

Potter on Advertising

I just came across the following text in David Potter's People of Plenty, Economic Abundance and the American Character. The book discusses several aspects of American society, and advertising is dealt with in depth. The essay, part of which is below, complements the ideas of Walter Lippmann and David Riesman quite nicely.

"...advertising is not badly needed in an economy of scarcity, because total demand is usually equal to or in excess of total supply, and every producer can normally sell as much as he produces. It is when potential supply outstrips demand--that is, when abundance prevails--that advertising begins to fulfill a really essential economic function. In this situation the producer knows that the limitation upon his operations and upon his growth no longer lies, as it lay historically, in his productive capacity, for he can always produce as much as the market will absorb; the limitation has shifted to the market, and it is selling capacity which controls his growth. Moreover, every other producer of the same kind of article is also in position to expand output indefinitely, and this means that the advertiser must distinguish his product, if not on essential grounds, then on trivial ones, and that he must drive home this distinction by employing a brand name and by keeping this name always before the public. In a situation of limited supply the scarcity of his product will assure his place in the market, but in a situation of indefinitely expandable supply his brand is his only means of assuring himself of such a place.

[...]

We are dealing...with one of the very limited group of institutions which can properly be called "instruments of social control." These institutions guide the life of the individual be conceiving of him in a distinctive way and encouraging him to conform as far as possible to the concept. For instance, the church, representing the force of religion, conceives of man as an immortal soul; our schools and colleges, representing the force of learning, conceive of him as a being whose behavior is guided by reason; our business and industry, representing the force of the economic free-enterprise system, conceive of him as a productive agent who can create goods or render services that are useful to mankind. Advertising, of course, is committed to none of these views and entertains them only incidentally.

[...]

Advertising appeals primarily to the desires, the wants--cultivated or natural--of the individual, and it sometimes offers as its goal a power to command the envy of others by outstripping them in the consumption of goods and services.

[...]

In contrast with these (the church and school, "which have conducted themselves with a considerable degree of social responsibility"), advertising has in its dynamics no motivation to see the improvement of the individual or to impart qualities of social usefulness, unless conformity to material values may be so characterized. And, though it wields an immense social influence, comparable to the influence of religion and learning, it has no social goals and no social responsibility for what it does with its influence, so long as it refrains from palpable violations of truth and decency. It is this lack of institutional responsibility, this lack of inherent social purpose to balance social power, which, I would argue, is the basic cause for concern about the role of advertising...What is basic is that advertising, as such, with all its vast power to influence values and conduct, cannot ever lost sight of the fact that it ultimately regards man as a consumer and defines its own mission as one of stimulating him to consume or to desire to consume.

Posted by chris at January 3, 2004 02:46 PM

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