Question

Critically evaluate the following statement made by a marketing executive: “Advertising is good because it always promotes competition.”

Answer 1

Advertising is a medium through which a message can be transferred from an organization to a potential consumer. Advertising is good because it can promote competition through informing consumers about the features of a new product. Through advertising an organization makes aware of its potential customers about the launching of new product. The medium of advertising may be print media,paper media or some other media.

Again advertising can decrease competition by creating brand familiarity. When a brand is more familiar it reduces the rate of competition. Also advertising is less required when a brand gains its popularity in the market place. Initially, a company has to take a lot of steps to stabilize its brand name in the market. It has to make right advertising and marketing plans to drag customer's attention towards it. Through advertising an organization conveys a message regarding its product qualities and it is the easiest way of reaching customers.

Advertising promotes competition but not always. When a company advertise its product through various media it has to face competition in the market, because there are other companies who are also advertising their product to drag consumer attention. Each and every company are trying their level best to show their product as "the best".

But when a company has a good brand name then in this case there is less competition. There is no need of huge advertisement. A company can increase its sales through its brand name. So we can say that brand familiarity can decrease competition. When a brand becomes familiar there will be less advertisement of product but it will not face cut-throat competition. The company can raise its sales smoothly.