What is the impact of promotion on consumer goods?if the answer could be in seminar paper format
One short term affect that promotion can have on a consumer good is to reduce overall inventory, especially if there are new, upgraded versions of the product coming to market soon, or if there is an unwanted overstock of a product. In other words, it clears shelf space.
Long term, it can also increase the brand name recognition of a product and enhance its reputation, if the promotion is done well that is. This establishes a customer base for the product, increases market share and in a limited fashion can guarantee some future sales, assuming other factors remain constant.
I'm sorry, but we cannot write a paper for you. But here are some thoughts that will, I hope, help.
There are two reasons to promote consumer goods (I assume you are talking about advertising). The first is simply to increase the demand for a product. An advertiser hopes that more people will want its goods at a given price if it promotes them.
The second is to make demand for the product more inelastic. If an advertiser can convince consumers that its products are unique or irreplaceable, they can raise prices and get more revenue.