In: Operations Management
One of the main factors in elasticity is the number of
substitutes available to a specific product. If there
are lots of substitutes available, then when a firm tries to raise
it price, consumers feel like they can substitute to the relatively
cheaper product. That's where firms might turn to advertising. If a
firm can make you believe that their product is so uniquely special
that an alternative just isn't possible, then they're able to make
their demand more inelastic.
Find an advertisement for a product (and be sure to include it)
that's trying to change it's elasticity. Recall, it
needs to do one of the following:
Try to make consumers believe that substitution isn't
really an option
Try to make their product more of a necessity vs a
luxury
Try to make time an issue such that you have to buy
their product sooner than later.
Then explain how the ad is trying to achieve any of the goals
above.
For example, this ad below hints that a gun is
a necessity to protect a family. Further, it
hints that Beretta is superior to other guns because this one has
all the features desired, having no close substitutes.
It even includes a clock which makes you think
that time is an issue.
Ads are designed to introduce certain concepts and must be convincing.The solution for successful advertising is knowing how much to assign towards specific types of advertising. Should be properly identified the target and it is used for the right customers.One of the best ways to attract attention in print advertising is to use a strong headline. Use highly readable print in your cards. Others types of advertising and print should be unique so that it can attract people immediately. It is not necessary to do any substitution or changes but the way of advertising and the print should be very much unique so that it would be more considerable by the customers. There are new ways of advertising in which the social media sites like facebook,instagram,twitter and many more. The solution to build sales and profits is to gradually increasing ads over time. Many startups also make advertisements to build awareness of their brand.