Industrial Economics - The Advertising Debate

Seminar paper from the year 2002 in the subject Economics - Industrial Economics, grade: 8/10, Hogeschool Zeeland (Commercial Economics), course: Industrial Economics, language: English, abstract: "e;Always Coca-Cola"e; who does not know this catch phrase? Advertising largelyinfluences the consumer behaviour. The aim of advertising is to push the consumerto buy and for companies it is a good way to increase their benefits and to have awell-known brand name. The advertising debate deals with the way of seeingadvertising: as a mean of persuasion or as a mean of information?At first, we would analyse the meaning of advertising within the advertising debatepart. Moreover, we will focus on the French and German advertising market. At last, we would compare, the different ways of Advertising in France and Germanyof the product Danone Actimel. I.1. What is Advertising?There are different views: for some economists, it is a waste of money, for others, it isreally important for the market economy. Advertising is useful when the potential market is important. There are different kindsof advertising: [...] The three goals of advertising are:- to introduce a product on the market,- to compare a product with another by highlighting this one,- to inform the consumers. Advertising is not the only way to promote a product; there are also other means asemploying more salesmen, improving the packaging, extending the wholesale andincreasing the margins. If you look at the table below, you can see that USA and UKare spending much more money on advertising than the other countries. [...]