What are some commercials on TV everyday, here is what I remember:
Products:
Beer: Miller Lite, Bud Lite, Sam Adams; Emphasis on tastes.
Fast Food: Wendy's MacDonald's; Emphasis on price and low fast/good tastes.
Soft-drink: Coke, Pepsi; if reg. emphasis on image - pop culture, coolness, if diet, emphasis on tastes.
Drugs: Nexium, ED drugs, Allergy drugs; emphasis on functionality
Technology: iPhone, iPod, Mac; emphasis on image - coolness.
Cars: so many examples; emphasis on functionality - speed, safety, parallel parking; exception, GM sales, Mercury warranty, in terms of company or brand rather than cars
Services:
Car Insurance: Geico, Esurance, AllState; emphasis on savings.
Online Travel: Priceline; emphasis on savings.
Banking: WaMu; emphasis on less transaction fees.
Car Dealers: emphasis on selection, savings.
Real Estate: emphasis on fast selling.
Cell phone carrier: Verizon; emphasis on network, saving on text message, free to switch...
Credit cards: more rewards...
Odd Balls:
Boeing passenger planes
Dell Main Frame
Financial Services for Small Business
Chemistry/Mining industry
Electricity company - Local monopoly
Interesting Point:
1. For products, price competition is obvious, because consumers can see price tag directly, then advertising is geared more towards image advertising, and product differentiation.
2. For services, consumers do not directly observe prices, and there are lot of product differentiation, then advertising is geared more towards emphasis on savings.
3. Small business owners get their information on TV??
Question:
1. Is it safe to conclude then advertising is promoting social welfare in service industry by driving price down? Then why is service industry so concentrated?
2. Why are chemistry industry, waste management industry, and electricity industry advertising at all? Consumers, even small businesses don't really have a choice, they are local monopolies.
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