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Promotion

In: Marketing and Economics

Author

Listed:
  • Merlin Stone

Abstract

Economic analyses of promotion have concentrated mainly on advertising and — to the extent that they are included in pricing analysis — promotional discounts. All above-the-line promotional methods share the same general characteristic that they involve the purchase or use of services (and sometimes goods) in an attempt to increase or maintain sales (i.e. shifting the demand curve outwards or maintaining its position). Corporate advertising may be an exception to this, especially where it is associated with the raising of capital. Most of the analysis in this chapter will apply to advertising, but the methodologies can on the whole be applied to all above-the-line methods. Economic analysis has been applied to the more theoretical issue of the conditions in which it is worthwhile engaging in promotion and to the empirical issue of the productivity or yield of advertising.

Suggested Citation

  • Merlin Stone, 1980. "Promotion," Palgrave Macmillan Books, in: Marketing and Economics, chapter 11, pages 132-143, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-16426-4_11
    DOI: 10.1007/978-1-349-16426-4_11
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