Role of Advertising

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Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm.

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  1. Describe the business and its likely main competitors.
  2. How would you structure your advertising and customer service to differentiate your product/service?
  3. How easy would it be for new competitors to enter your market and erode your customer base or selling price?
  4. What would be your prognosis for the long term profitability of such a business?
  5. What could you do to protect that long term profit stream?

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