Question

Topic: Role of Advertising

Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm.

1. Describe the business and its likely main competitors.
2. How would you structure your advertising and customer service to differentiate your product/service?
3. How easy would it be for new competitors to enter your market and erode your customer base or selling price?
4. What would be your prognosis for the long term profitability of such a business?
5. What could you do to protect that long term profit stream?

Answer 1

ANSWER:

Monopolistic serious market is a market which has numerous contenders and each firm in the market rival each other through different methodologies like item separation. Let us consider a firm ABC which will build up its business with items like makeup, excellence cleansers and so forth. The market or industry of such firms will be a lot of serious and there are numerous mammoth rivals in this market.

The ruling rivals in this market have its own notoriety which has been acquired through its effectiveness and nature of the items. In such market our organization being the new participant should endeavor a great deal with showcasing exercises and great client care to catch the eye of the clients. Through notices the firm can feature the advantages and viability of its items with the goal that the clients can look at themselves. They can likewise feature their strategic vision with respect to the quality and administration they give.

In such market the danger of new participant is high and the firm ABC should direct extreme statistical surveying constantly with the goal that they could distinguish the changing business sector patterns and the nature advertise. This will empower them to distinguish fitting procedures to stay predominant in the market.

Giving quality item and top notch client care is the main alternative for the firm in this monopolistic industry to support in the serious market. Through they can shape great client base which is basic for increasing upper hand.

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