Professional Documents
Culture Documents
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2 Economics
6 The effects of advertising on our
economy
2 Ethics
6 The effects of advertising on our society
2 Regulation
6 Our attempts to manage those effects
3
arket Power arket Information
6 Ydvertising 6 Ydvertising
6 Persuades consumer to 6 Increased consumer knowledge
purchase one brand over
another more often 6 ore substitute products
6 Excess brand profits consumers can consider
6 Higher barriers to entry 6 Lower barriers to entry
and more market power by new brands
6 ore advertising leads to 6 Reduced market power for
greater brand loyalty any individual brand
6 Reduce quality/raise price 6 Better pricing/distribution
6 Reduced consumer more product innovation
sovereignty 6 Optimal brand profits, consumer
6 onopoly choice, and price benefits
u
2 Ydvertising = arket Power
2 Or both?