Advertising is regarded as a means of non-price competition for enterprises to participate in market competition, and it is an important content of enterprise market management activities with the goal of maximizing profits in competition.
However, in a broad sense, the significance of advertising goes far beyond this. Advertising competition is not only a matter of business strategy, but more importantly, it is also one of the factors that affect the market structure and industry concentration.
So, what is the relationship between advertising competition and market concentration? How does advertising competition affect market concentration? This is not only a problem that economists try to discuss, but also a problem that industries must pay considerable attention to when formulating advertising competition strategies and strengthening competition control by the government.
Attract consumers' attention and spread sales information and product information to target sellers in an innovative way to arouse their interest (curiosity) in products. Whether a consumer can arouse his interest after receiving information depends on his use function, convenience and ideal purchase channel of the product. If so, consumers will deeply understand the details.
Its actions are usually: telephone consultation, door-to-door shopping, website inquiry and inquiry through friends. To understand products, advertising activities must include product introductions. The shorter and more direct communication, the easier it is to increase consumers' memory and promote consumers' transactions.
One of the important links is the atmosphere rendering of the sales site. Good sales atmosphere is an effective means to promote transactions (in any link that can reflect products, a strong sales atmosphere should be injected into the senses such as perspective, touch and taste). Advertising planning plays a role in the whole marketing process.
In the early stage of marketing activities, advertising planners will do channel analysis, judge the media that target consumers can reach, and give suggestions on the company's broadcast channels (TV, outdoor, DM flyers, etc.). ), which can make the advertising channels more targeted and effective.