To remain competitive, companies need to sell products at a price consumers are willing to pay. Lower production costs usually result in lower selling prices. Advertising makes people buy things they do not need. The consumer decides whether or not to buy. Ads can inform and persuade, but they consumer makes the final decision.
Advertising reduces competition.
Actually, advertising tends to increase competition. As advertising spreads the word and the demand for a product increases, more producers will try to meet consumers'needs. Advertising can make up for poor product quality and therefore keep a poor product in the market. Advertising may be able to persuade a consumer to purchase a product one time, but if the consumer is not satisfied, no amount of advertising will encourage additional purchases. Advertising contributes to giving consumers more choices.