
Intro Econ 7: Advertising & Race
Planet Money Summer School
Market Segmentation and Advertising Competition
Advertising can create a barrier to entry for competitors by targeting specific demographics, leading to a competitive marketplace where companies are compelled to focus on different consumer groups to maintain market share and prevent competitors from gaining an advantage. This process highlights the strategy of market segmentation, dividing the market into smaller groups to increase sales and addresses the challenges of information problems in advertising.
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