Final answer:
The advertising that highlights unique features and benefits of a brand is known as product differentiation. This strategy focuses on intangible aspects and consumer perceptions shaped by advertising, with the ultimate goal of boosting sales and profits.
Step-by-step explanation:
The type of advertising that points out a brand's unique features and advantages, which may not be present in competing brands, is often associated with product differentiation. This method of advertising emphasizes the intangible aspects that can set a product apart, such as guarantees of satisfaction, a reputation for high-quality, free delivery services, and even offering loans for product purchases. Additionally, advertising can shape the preferences of consumers by influencing the mental perception of a product. For instance, consumers may have established preferences for certain labels of ketchup, mayonnaise, beer, or cigarettes, driven in part by advertising, regardless of whether there is a discernible taste difference between brands.
Product differentiation through advertising works within the framework of monopolistic competition and can either make a firm's perceived demand curve more inelastic or shift the demand curve to the right. A successful advertising campaign can therefore lead to higher sales volume or allow for price increases, boosting the firm's profits.