Question

To use the key word technique, you must be familiar with the marketing strategy for the product or service. True or False?

Answer 1

In a perfectly competitive market, creating an aggressive advertising campaign for your product may not be the most effective strategy. However, there are exceptions depending on the unique features or benefits of the product.

Step-by-step explanation:

In a perfectly competitive market, creating an aggressive advertising campaign for your product may not be the most effective strategy. This is because in a perfectly competitive market, all firms are selling identical products and there is no scope for product differentiation. Therefore, advertising alone may not lead to a significant increase in sales in the short run. Instead, firms in a perfectly competitive market rely on factors such as price and product quality to attract customers.

However, it is important to note that this answer assumes that the product or service being sold is typical of a perfectly competitive market. In some cases, there may be unique features or benefits of the product that can be effectively communicated through advertising, even in a perfectly competitive market.

In conclusion, while advertising can play a role in increasing sales, creating an aggressive advertising campaign may not be the most effective strategy for a company operating in a perfectly competitive market.