responses 2

Differentiation and advertising

Kristin

5/16/2014 8:05:54 AM

  The whole idea of advertising is to convince the consumer that your product is not only better, but is the best.  People will pay for supposed quality, or to have a known brand name product.  When products are similar, such as soda - like Coke and Pepsi, the advertiser uses image and emotions to entice the buyer and convince them that this product not only taste good, but will make your life better.  Advertisers not only sell a functional product, they sell image; if you use this product your life will be better, you will have more friends, more influence, etc.    By making the product desireable, the advertiser's goal is to increase the demand.  When demand is increased, then prices can be too.  But, some advertisers flip the script and their main selling point may be quality at a lower price.  When the price is low and the demand is high companies can make a profit from sheer volume.    In any case, we as consumers, need to investigate the product and not believe the hype that is generated by advertising.

Product Differentiation

Jodi

5/17/2014 9:13:41 PM

Product differentiation is the comparison of one similar product to others in order to point out the differences and the benefits of the intended companies product. A great example is between all types of soda brands (The Pepsi Challenge etc). The advertising company tries to point out to consumers the differences their product brings to the table and why it is more desirable. Paper towels and toilet paper products do this a lot as well. Bounty picks up "this many" messes while leading brands are ripped and torn after one spill etc. They want to showcase their products staying power and durability. I also believe it's a great way for companies to explain why their product may be priced higher than leading competitor's. The intention of this type of advertising like I stated is to explain why their product is better than the other brands/competition that are available. I can only assume this type of advertising is and has been beneficial as it has been going on for a very long time. Consumers see the advantages to their product and purchase that over the others that may be made out to be cheaper or lower quality. This will shift the demand curve to the right and increase demand, ideally.