Final answer:
Advertising is used to differentiate a company's products from competitors', targeting a specific audience by understanding their demographics and lifestyle. A successful campaign can increase a firm's demand curve, affecting both quantity sold and pricing. The key is in crafting messages and slogans that resonate with the target market and highlighting the unique value proposition compared to competitors.
Step-by-step explanation:
Product advertising, particularly in the context of monopolistic competition, is designed to distinguish a company's product from its competitors. By leveraging advertising, a firm can make its perceived demand curve more inelastic or shift this curve to the right, thereby increasing demand, which can result in higher quantities sold or the ability to charge more, maximizing profits. Considering the example of Miller beer, where advertisement creates synergy by conveying the same message through multiple platforms, we can understand how demographics, lifestyles, and geographic profiles are critical for a target market analysis.
Competitor analysis and unique selling proposition (USP) are key to a company's positioning. This can involve advertising slogans or campaigns that resonate with the target demographic, emphasize differences compared to competitors, and connect with the consumer's lifestyle. An effective campaign also must be simple and memorable to successfully penetrate the market and stay top-of-mind among consumers.
In relation to competitors, the company you've selected must develop a compelling message that captures the market's attention by addressing the unique aspects of their product's value proposition. This often includes crafting slogans that reflect the lifestyle or aspirations of the target audience and creating advertisements that clearly demonstrate the benefits of choosing their product over others in the marketplace.