Final answer:
A Push strategy does involve sales promotion directed at the trade to increase product availability in the market. In perfectly competitive markets, advertising may boost sales in the short term, but won't lead to substantial long-term market share due to product homogeneity and ease of entry by competitors.
Step-by-step explanation:
True, the type of sales promotion directed to the trade is often referred to as a Push strategy. A Push strategy involves pushing products through distribution channels to the end consumer. For example, a manufacturer may work with wholesalers and retailers by offering them promotional incentives, discounts, or display materials to encourage them to stock and sell more of their product to consumers. This differs from a Pull strategy, where the aim is to create consumer demand so that consumers actively seek out the product in stores, compelling retailers to stock it due to direct consumer demand.
In the context of perfectly competitive markets, an aggressive advertising campaign can be tricky. Since products in such markets are generally homogenous and prices are driven by supply and demand, advertising tends only to be effective in the short term. It can increase brand recognition among consumers but will not usually lead to long-term gains in market share because competitors can easily replicate the product and undercut prices.