In which industry structure is advertising and sales promotion likely to be most important?

Question

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In monopolistic competition, there are many firms in the market producing differentiated products, so it becomes crucial for each firm to differentiate itself from its competitors through advertising and sales promotion. This helps the firm to create a distinct image in the minds of consumers and increase brand loyalty, which is essential for the long-term success of the firm. In perfect competition, there are many small firms producing homogeneous products, so advertising may have limited impact on sales. In a monopoly, there is no competition, so advertising and sales promotion may not be as crucial for the survival of the firm.

In Which Industry Structure Is Advertising and Sales Promotion Likely