Need help with the following group discussion question. It does not have to very long.
In monopolistically competitive markets, advertising plays a critical role in the competitive ebbs and flows of such markets. The monopolistically competitive firms use the advertising tool as a means of differentiating their product from those of their competitors. An effective advertising campaign could give rise to the development of brand loyalty (and hence, a steady revenue stream).
Hypothetically, if dry cereal manufacturers (a monopolistically competitive industry) decided to no longer advertise their products, how do you think that cereal consumption would be impacted? What would be some of the advantages and disadvantages of such a strategy for both the cereal manufacturers and cereal consumers? Incorporate one non-lecture or textbook resource as evidence to support your position,