Why do new brands with a smaller market share spend proportionately more on adve
ID: 471090 • Letter: W
Question
Why do new brands with a smaller market share spend proportionately more on advertising than brands with a larger market share?
At what stage in a product's life cycle are pioneering, competitive, and comparative advertising most likely to occur? Give a current example of each type.
Why do new brands with a smaller market share spend proportionately more on advertising than brands with a larger market share? At what stage in a product's life cycle are pioneering, competitive, and comparative advertising most likely to occur? Give a current example of each type.Explanation / Answer
Because new brands require to reach a minimum level of market exposure to affect the purchasing habits of a customer whereas brands with large market share already have enough market exposure.
Pioneering advertising occurs at the start of product lifecycle when the product is first introduced in the market.This form of advertising is designed to stimulate primary demand for a new product or product category.
Example be the advertsement for first PC by apple.
Competitive advertising is used after the introductory phase of the product lifecycle during the growth phase when the product market is new and advertising provides positive points about the product to the customers.
Examples include advertisements by major washing powder brands
Comparative advertising is used at later stages of product lifecycle when there are only a few competitors. The advertising compares two or more competing brands on one or more specific attributes, be it directly or indirectly compared.
Examples include advertisement war between IPhone and samsung Galaxy series smartphones.
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