Final answer:
In monopolistically competitive markets, firms can increase demand by focusing on wholesalers, distributors, or salespeople who push the product to consumers via distribution channels. This can be achieved through incentives for intermediaries and attractive trade promotions.
Step-by-step explanation:
In monopolistically competitive markets, firms can increase demand for their products through means other than advertising. One way is by focusing on wholesalers, distributors, or salespeople, who push the product to consumers via distribution channels.
By establishing good relationships with these intermediaries and providing them with incentives, such as discounts or bonuses, firms can encourage them to promote and sell their products more actively.
For example, a firm may offer a higher commission to salespeople for selling more of its products compared to its competitors' products. This can motivate salespeople to prioritize the firm's products and actively promote them to consumers, thereby increasing demand.
Another strategy is to offer attractive trade promotions, such as volume discounts or special promotions, to wholesalers and distributors. These promotions can incentivize them to buy and distribute larger quantities of the firm's products, boosting overall demand.