Monday, February 2, 2009
Price War
The expenses incurred on this video are obviously huge; location, celebs etc. During our marketing course we came to know that price war is basically a stupidity as it's a loose-loose theory. Products like soft drinks, cell phone connection etc are seen quit often following this phenomena. Then what's the point of spending such huge amounts on these commercial ads?
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3 comments:
Price war is surely not a good thing. But why the companies spend so much on the commercial ads is because they have to persuade their target consumers that they are providing them with the greatest value. As in a price war they might compare their brands with the others to build selective demand but it may result in advertising war. The companies judge their brands against others and show the consumers that they are better than them. They have to spend too much on the ads because soft drinks and cell phone connections are undifferentiated products so to set them apart they draw consumer’s attention through advertisement.
May be, these companies have enough advertising budget to create much better ads than its competitors to build customer relationships and their satisfaction.
ya but if you see the telco's ads these days they are just depicting price war nothing else. e.g the new budget package of jazz & the ufone offering 66p. The ufone ads are funny n attractive but do people change their connections because of them?
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