Final answer:
Decisions impacting brand promotion include sales force training, advertising allocation and budget, and pricing. In monopolistic competition, firms can also increase demand through product innovation and enhancing customer experiences. An increase in demand allows for higher pricing and output, while price ceilings can lead to market shortages.
Step-by-step explanation:
Decisions that directly impact the promotion of your brands include sales force training, advertising allocation and budget, and pricing strategies. Sales force training equips the team with the necessary skills and product knowledge to effectively convey the brand's value proposition to customers.
Allocating the right budget for advertising ensures that promotional activities reach the desired audience and generate awareness or demand. Setting the right price is crucial to positioning the brand in the market and can influence the perceived value among target customers.
In the context of a monopolistically competitive firm, increasing demand for products may also involve expanding or reducing production, innovating with new products, or enhancing the customer experience. These actions, aside from advertising, can help a firm differentiate its offerings and capture a larger market share.
If a monopolistic competitor experiences an increase in demand, this typically allows the firm to increase prices and expand output, given that they have some degree of market power to set prices above marginal cost. Conversely, the imposition of a price ceiling in a market usually does not shift demand or supply directly, but can create shortages if the ceiling is set below the equilibrium price, as it restricts the price at which goods can be sold.