Question

Sales promotion is defined as short-term marketing incentives to stimulate dealer interest and consumer buying. The first is B2B the second is B2C . Sales promotion programs are design to supplement personal sellin, advertising, public relations, and other promotional efforts by creating enthusiasm for the overall promotional program.

Answer 1

Sales promotion consists of short-term incentives to stimulate interest and purchase behaviors in both B2B and B2C markets, complementing other marketing strategies. Advertising helps firms in monopolistic competition to either enhance product differentiation or increase demand, which can lead to higher profits. Tying sales and bundling are also promotional strategies that can impact consumer purchase decisions.

Step-by-step explanation:

Sales promotion involves short-term marketing incentives that are designed to stimulate interest and buying behavior in both business-to-business (B2B) and business-to-consumer (B2C) contexts. These promotions are used to supplement various facets of a promotional program, including personal selling, advertising, and public relations, by injecting enthusiasm and generating additional demand for a product or service. In the realm of monopolistic competition, advertising plays a crucial role in shaping a firm's perceived market position either by making the firm's perceived demand curve more inelastic, meaning consumers become less sensitive to price changes, or by increasing demand for the product, which shifts the demand curve to the right. Successful advertising can enable a firm to sell more products or services or to charge higher prices, often resulting in increased profits. Furthermore, tactics like tying sales and bundling are used to either compel the purchase of additional products or offer benefits to the consumer through combined offers, respectively.