Market power theory of advertising

MyWikiBiz, Author Your Legacy — Sunday July 25, 2021
Jump to navigationJump to search

The market power theory of advertising is a theory of product promotion that suggests established companies use advertising as a barrier to entry for competitors, by conveying product differentiation. Such a firm's use of advertising differentiates its brand from other brands to a degree that consumers see the established brand as a slightly different product, one not ideally substituted by existing or potential competitors. This makes it more difficult for new competitors to gain consumer consideration and acceptance.