Published by:
Harvard Business Publishing
Length: 8 pages
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Abstract
Many U.S. manufacturers, searching for growth in maturing consumer markets, have shifted their emphasis from advertising to sales promotions. But promotions actually mean price reductions. The loss of profits can be severe. Promotions bring volatile demand, whereas the producer seeks stable demand. Theme advertising that seeks to sustain a brand''s image and build customer loyalty can actually help stabilize demand.
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Abstract
Many U.S. manufacturers, searching for growth in maturing consumer markets, have shifted their emphasis from advertising to sales promotions. But promotions actually mean price reductions. The loss of profits can be severe. Promotions bring volatile demand, whereas the producer seeks stable demand. Theme advertising that seeks to sustain a brand''s image and build customer loyalty can actually help stabilize demand.