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Advertising a demand shifter

Advertising is considered to be expensive and delicate procedure as not always through


accomplish what was first intended, meaning the increase of the demand. In my opinion,
advertising can be considered loud or silent.
For example, on Friday the 23
rd
2!2, also called "lac# Friday, most of the stores, online stores
included, had big discounts. $hese discounts has been promoted through the media environment
for a few wee#s previous to this date, and were meant to increase the amount that the companies
sold by a lot. If we analy%e this factor, we can consider that only by advertising the people would
only consider buying the products, therefore, by selling at a lower price, the companies
determined the consumers to but bigger &uantities of products, thus determining a shift in the
demand curve. $his means that selling at a lower price, the amount that was sold was actually
bigger than they would have sold if they would have 'ust lowered the prices without advertising
about it. $herefore this type of advertising has generated a shift to the right in the demand curve.
In my opinion this can be considered a type of loud advertising.
(eanwhile the silent advertising, in my opinion, is the type of advertising that one does in an
indirect way. For example, a new Auchan hypermar#et will be opened by the end of )ecember
2!2 in the *rangasi neighborhood in "ucharest, although I am estimating that it will be finished
by )ecember 2
th
, 'ust in time for the *hristmas shopping. +hy is this silent advertising,
"ecause it was mentioned a few timed in the media and that was it, but for the inhabitants in the
neighborhood, it is being advertised daily, as every time you pass by it, you see new things being
finished and expect the opening day. "y opening a new hypermar#et in this area, where there are
few big competitors, but also very far -*arrefour .rhideea and *ora /u'erului0, the Auchan
hypermar#et has created an increase in the demand, although the prices will be similar to the
other competitors, therefore this type of silent advertising , will determine a shift to the right in
the demand curve.
In conclusion, advertising is good for business, depending on the fact that you actually #now
how to do it, as good advertising will increase your profit and the &uantities you sell, implicitly
the demand curve will shift to the right, while bad advertising will determine the demand curve
to shift to the left, therefore a decrease in profit and also in the sold &uantities is visible.

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