American Military University Microeconomics Discussion

I’m trying to learn for my Micro Economics class and I’m stuck. Can you help?

Topic: Role of Advertising and Brand Power

Some companies have achieved a level of status that allows them to sell their products or services at premium prices. These companies have established brand power. In some cases, the products or services are of equal or lesser quality than their competitors, yet they continue to reap the benefits of having a loyal customer base and an established positive image.

In some cases, a brand monopoly dominates a market to the point that its very name is used when referencing a product or service. For example, even when they are not referring to any particular brand, people often use the term Kleenex when referring to a tissue, Pampers when referring to a diaper, or Google when referring to an internet search engine. These companies have established brand power, and their names are used when referring to an industry rather than to a particular producer within the industry.

In fact, whether or not there is any evidence that a particular brand has superior quality, some companies have created an image that is associated with a desired status. This is a result of perceived quality that is based upon pricing and effective advertising strategies that often associate the product or service with a particular standard of living, group of people, or famous celebrities. Brand monopolies often promote an image that is strategically marketed to a targeted audience and is designed to appeal to the interests, needs, and expectations of the people within that group while trying to draw more buyers into that group.

For this discussion, identify a brand monopoly and answer the following questions.

1. What product or service does this company produce? Describe your experience using this product or service.
2. Based on your experience and research, what differentiates this product or service from other producers in its industry?
3. What trademark or copyright protections does this company have to protect it?
4. Why do you believe this company experiences brand loyalty?
5. Who do you believe is in this company’s target market? Why?
6. What can this company’s competitors do to increase their own market share in this industry?