Discuss the role of advertising in product differentiation and the intent of advertising in altering the firm’s demand curve.
I am always reminded of Marlboro cigarettes.
Early days: for independent women. Look at all picture icons of ads.
Sales were dismal.
Later days:
https://www.google.com/search?q=Marlboro+cigarettes+advertising+men&client=firefox-a&hs=JJ6&rls=org.mozilla:en-US:official&tbm=isch&tbo=u&source=univ&sa=X&ei=rIk8UoKBGorE2QW3voDQAg&ved=0CCwQsAQ&biw=1440&bih=754&dpr=1
sales boomed.
Now you answer your question. If you make the product attractive to the right audience, and they identify with it....
In both cases the makers of the product knew how dangerous smoking was. Lucky for women.
early ads here, they didn't post
http://tobacco.stanford.edu/tobacco_main/images.php?token2=fm_st042.php&token1=fm_img1055.php&theme_file=fm_mt013.php&theme_name=Women%27s%20Cigarettes&subtheme_name=Marlboro
Advertising plays a crucial role in product differentiation, which is the process of distinguishing a company's product or service from others in the market. By using advertising strategies, companies are able to communicate the unique features and benefits of their products to consumers, thereby creating a perceived difference.
One way advertising supports product differentiation is by highlighting the distinct attributes or qualities of a particular product. It can emphasize factors such as quality, design, durability, convenience, or any other aspect that sets it apart from competitors. Through advertising, companies can develop a brand image and position themselves as offering a unique value proposition in the market.
Moreover, advertising helps shape consumer perceptions and preferences. By repeatedly exposing consumers to advertising messages that emphasize the benefits and superiority of a product, companies can effectively influence consumer attitudes and purchase decisions. For instance, a company might use advertising to promote the idea that their product is luxurious, innovative, or eco-friendly, leading consumers to perceive it as such.
In terms of altering the firm's demand curve, advertising can play a significant role in shifting the demand curve to the right. This means that advertising can increase the quantity demanded at any given price level. By creating brand awareness and stimulating consumer interest, advertising can generate a higher demand for the product.
Advertising also contributes to an upward shift in the demand curve by creating a strong brand image and customer loyalty. When consumers perceive a product as unique or preferable, they may be willing to pay a higher price for it. This can result in an expansion of the market demand, leading to a higher quantity of the product being demanded.
In sum, the intent of advertising in altering the firm's demand curve is to create product differentiation, position the product in a unique way, influence consumer preferences, and ultimately increase demand for the product. It achieves this by highlighting the distinctive features of the product, shaping consumer perceptions, and creating brand loyalty.