Answer:
1) During the 21st century a new tool has been added to the advertising market, technology because it can address to a greater number of people and can be shared with a click. For an advertising campaign to be successful, a demographic study as well as the knowledge of social media will shed light on the consumer’s behaviour and best context to get the message across. Strategic decisions happen all the time, for example, whether to focus on a greater audience with fewer repetitions of to aim to a specific group more times. In a free-enterprise economy, advertising gains importance as it highlights which products are available in the market. The power of media to massify a product has aroused controversy as to who is paying for the extra service and the power of small brands. Another debate relates to the advertisers’ power to choose media content but it has been argued that the audience has their own preferences.
2) Advertising determines the final price you pay for a product. When an advertising campaign is launched to make a product visible, market and audience studies are carried out together with an intensive analysis of mass media. All these strategies come with a price that is added to the cost of production. “The consumer must pay for the cost of advertising in the form of higher prices for goods” ("Advertising," 2012), in other words, a mass market good comes with an added value we have to pay for.
Reference
"Advertising." Encyclopedia Britannica. Encyclopedia Britannica Online School Edition. Encyclopedia Britannica, Inc., 2012. Web. 17 Dec. 2012.
