Proposal
Focus Question:
• “Does the youth of St. Mary’s DSG Pretoria know about competitive advertising and do they believe that it should be allowed in South Africa?”
Market:
• I would focus my research on competitive advertising in general.
• Competitive advertising was an interest to me because I believe advertising in South Africa is not regarded by the majority of our citizens as having any real value to society. Therefore through primary and secondary research, I would like to confront the need for competitive advertising in South Africa and the benefits it would bring to the South African economy and consumer. What I find interesting in competitive advertising, is the type of techniques used to promote the product/service and appeal to the possible consumer. It is more interesting and has many benefits for the consumer.
Through mixed research, the following aims will be achieved:
• What is competitive marketing?
• The advantages of competitive marketing.
• The disadvantages of competitive marketing.
• Why does the Competition Commission of South Africa restrict competitive marketing?
• How competitive marketing should be implemented into the South African market.
Complied By
Kwenza Mncwango
Literature Review
Competition is defined as “the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.”[Business Dictionary Online]
It is obvious that media plays a significant role in our society. It affects every aspect of our lives - political, social, and cultural. In the various works including articles, lectures and films, Jean Kilbourne presents an insightful and critical analysis of advertising and its profound negative effect on all of us. She states that, “Advertisement creates a worldview that is based upon cynicism, dissatisfaction and craving” (p. 75). She discusses the issue in a very objective and impartial manner, “The advertisers aren’t evil.
The best way to stay ahead of the competition is to ensure that whatever they are doing in the market reflects something that you are doing to drive there. Competition is necessary since without competition you can grow stale and not develop a product or service that pushes the organization to its fullest potential. An increase in the rivalry can occur when it does not cost the customers a much money to change which competitor they shop with (Bethel, 2017). The customer ultimately has the option to sway how businesses compete since the goal is for the customer to spend their money in their stores either in person or online. If they can present a better product or shopping experience, then the customer could easily shop with them since the cost would be a
When developing a new product or service to sell to the public, it is good for a business to consider whether there is a market. If there is, it could determine if the product or service will be successful. It is likely that businesses will have competitors within the same market competing to sell their goods to customers as well. Market Share:
Advertising is also important to the consumers because people when they buy, weigh the cost and benefit of the product they are about to use. Furthermore, it increases the consumers’ awareness whether the product is available in the market or not. It is already expected that if a product is not advertised, it will not become popular to the consumers, and consumers will not buy a product if they have not heard not tiny information about it. It is through advertising that consumers are able to choose the product for them and their
Using logos, pathos and ethos influence the people and always has a purpose of why they create the advertisement and for who. Majority of all the advertisement can be for child, teenagers, and adult. The point is cooperation’s or business has a message of representation from their companies that it makes them unique but people has to have more power of controlling how they react to advertisement and pay attention to little details. Advertisement has purpose, audience and language and in common it has persuaded, inform and
Advertising has been around for decades and has been the center point for buyers by different subjects peaking different audience’s interests. Advertisers make attempts to strengthen the implied and unequivocal messages in trying to manipulate consumers’ decisions. Jib Fowles wrote an article called “Advertising’s Fifteen Basic Appeals,” explaining where he got his ideas about the appeals, from studying interviews by Henry A. Murray. Fowles gives details and examples on how each appeal is used and how advertisements can “form people’s deep-lying desires, and picturing states of being that individuals privately yearn for” (552). The minds of human beings can be influenced by many basic needs for example, the need for sex, affiliation, nurture,
Its aim is to delivering some value to the customers so they purchase or sell goods and/or services. Advertising, however is one of many tools used in marketing to reach and inform consumers. Of the four P’s in the marketing mix, advertising falls under ‘promotion’. Some other marketing tools are public relations, sales promotions, directing marketing and personal selling. There are various types of advertisements, among them political, public service, retail and directory.
In most cases, competitive moves by one firm have noticeable effects on its competitors and, thus, may invite retaliation or efforts to counter the move (Porter 1980). Companies respond to competitor challenges by counterattacking with increasing advertising expenditures, cutting prices,
Porter’s article has strong analysis and provides persuasive examples to support his argument. He carefully explains the five forces and demonstrates how they affect the competition in business. For example, when discussing about rivalry among existing competitors, Porter briefly mentions about different forms of rivalries and its intensity. After that, he analyzes the situations that lead to different level of intensity in rivalry carefully. Porter illustrates that “ The intensity of rivalry is greatest if: Competitors are numerous or are roughly equal in size and power…Industry growth is slow…
Now, like any other company out there in the corporate world, they all come across a point in business where they face a competitive situation, due to either their product line, pricing, or their financial system. According to our
Market structures describe the competitive environment in which a firm operates. The characteristics of the market structure will have a major-influence on the competitive strategies and tactics that are implemented by firms. (Octotutor, 2014). For the purpose of this analysis, I have chosen to analyze the Coco-Cola Company, which operates in an oligopoly. This type of market has many implications for both consumers and competing firms.
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.
Market penetration pricing is about setting a lower price on our product with aim to attract customers to buy our product because of the cheaper price compare with other competitor. In our ice cream industry, we have many competitors such as Gelato and Llaollao, so we can use this strategy to stand out among other competitor and draw attention from the customers. After we had successfully penetrated into the market, we will slowly raise back our price to our normal pricing. (A. Pahwa, 28 January
Literature review Advertising has become a form of communication and a great source for promoting services and products for any business in the whole market because of its broader impact. The main idea of an advertisement is to get the attention of the consumers, build up the product’s strong image in their mind and provide information to help the consumer to make a purchase decision. So, the central focus in today’s diverse global marketplace is the consumer. Companies exert a lot of effort to find out the best ingredients that should be in an effective advertising and identifying its influence on the consumer’s mind, so effective advertising should be considered as one of the most important tools that strongly affect and can change the consumer’s buying behavior. The research attempts to investigate the impact of effective advertising on the consumer’s buying behavior.
A creative advertising can lead to more memorable, longer lasting, works with less media spending, and builds a community faster. Lack of creative advertising, Pensonic Holdings Berhad is hard to inspiring people to buy their products. Ads that simply catalogue product attributes or benefits were not enough to attract the customer attention and positive attitudes about the products being marketed cannot lead to the customers (Werner & Peter, 2013). Effective advertisements are advertisements that help the advertiser to reach its goals (Doyle & Saunders, 1990). Other than that, According to most studies in different countries, revealed that TV has the biggest effects on audiences and persuade them to start purchasing processes.