Explain the differences in advertising approaches that firms should take depending in whether they are in markets that constitute perfect competition, monopolistic competition or oligopolistic competition.

 

## Advertising approach in perfect competition.__

in perfect competition there are large number of buyer and large number of seller who deals in products of homogenous nature. due to the homegenity of prouct it becomes difficult for sellers to make an effective advertisement for their product which is better than their competitors because each and every seller in perfect competition market is engaded in the products of homogenous nature. in perfect competition market organisations or sellers engaged in advertising would not get their result of maximising profits, because they are pushing up marginal costs unnecessarily as there is no impact to the firms demand since products are standardised and are of similar nature.

##Advertising approach in monopolistic competition or oligopolistic competition__

in monopolistic competition advertisement plays a key role as through effective advertising a firm may achieve the goal of product differentiation and thus acquire some degree of market control. there is a lot of advertisement in monopolistic competition and oligopolistic competition is because the concerns engaged in it are advertising in consumer awareness campaigns and this will ultimately boost public image and industry morale.. thus under monopolistic competition or oligopolistic competition a firm can advertise efficiently through customer awareness campaigns hoardings boards and through social media .this is so because in monoplistic competition or oligopoistic competition a firm enjoys the market control and doesnot have any constraint of competition from other concerns.