The main concept of business is to support the community and partners of a business to grow economically. The business should support all other co-existing and small businesses.
The business should spread the knowledge and techniques of the business to others. This enables the supportive business to grow mutually. The monopolistic competition supports the above scenario of society.
The concept of advertising increase monopoly power of a firm and ensures stability.
The process of Monopolistic Competition
The model of business is extensively followed by all over the world. This business model is inclusive in nature. This model gives a flow of money constantly.
This model ensures that all other qualified business to stay in the field. In this model, each business will be in support of others.
Each business will manufacture one portion of the product which reduces the cost overhead of the organization. This model allows all the business to produce independent products. For example, consider one international beverage company.
The cost of transporting is very high from the Place of manufacturing to other places in the world. So it can have a manufacturing plant in the different countries in which it is doing business. Furthermore, the supporting companies also produce bottles for beverages.
The label according to the brand of the main company is also manufactured by some other company. In this way, many companies give a helping hand to other companies to survive.
Standardization of product
Since monopoly allows all the businesses to flourish. The main idea is to grab the opportunity and progress forward. So the monopolistic market allows only the companies that support the business of a single concern.
The advertising in monopolistic competition is made to introduce and popularize the single industry this makes other industries to move away from the market. This ensures that lots of consumers are pulled into your business entity.
Enrolling of partners
The main theme of the monopolistic business is to associate large numbers of the business. This will reduce the race to catch the chance of business. We have to give some marketing support initially to attract a partner.
We have to plan attractive discounts and bonuses for entry. We have encouraged the partners by giving attractive prizes and incentives.
Product uniqueness and loyalty
This is the root monopolistic competition. We have to devise the strategy of monopolistic competition advertising which will set the new pricing standards. This will prevent the new business from entering into the market and offers a low price.
The brand loyalty of the partners should be maintained and you have to prevent the partners to move to other brands.
Final Take away
The advertisement strengthens the monopolistic market. You have to be associated with likeminded peoples which will enhance your performance. You have to properly engage the partners for the successful growth of the business.