Final answer:
All the options.
Sales promotions can achieve multiple objectives such as increasing purchases by current customers, gaining new customers, drawing customers from competitors, and influencing how existing customers shop. They are crucial in enhancing demand and profitability within a competitive market, contributing positively to the overall economy.
Step-by-step explanation:
Sales promotions can effectively achieve several objectives for businesses. They are designed to increase purchases by established customers, gain new customers, draw customers from competitors, and encourage current customers to buy differently. In a broader sense, sales promotions are part of marketing strategies that can create a more inelastic demand curve for a company's products or even shift the perceived demand curve to the right, leading to greater quantity or higher prices, thus increasing profits. For monopolistically competitive firms, beyond advertising, strategies like product innovation, customer service improvements, and loyalty programs can act to increase demand for their products. As consumers gain access to better or less expensive products, businesses capturing their interest tend to see increased profits, which can lead to higher incomes for their employees. On balance, while competition may lead to some businesses losing out, the overall economy typically benefits from the better allocation of resources and the expansion of consumer choice.