Advertising Allowance

The video discusses various marketing strategies, focusing on advertising as a key tool. It introduces the concept of advertising allowance, a financial incentive provided by manufacturers to retailers to promote their products. This allowance can be in the form of cash or discounts. Retailers can use these incentives to purchase ads or offer discounts to customers, ultimately aiming to increase product visibility and sales.

What is a primary tool marketers use to convey their message to customers?

• Market Research

• Public Relations

• Advertising

• Direct Selling

What is the main purpose of an advertising allowance?

• To increase product prices

• To reduce manufacturing costs

• To incentivize retailers to promote products

• To enhance product quality

How can advertising allowances be provided to retailers?

• Via cash or discounts

• Through free samples

• Through extended warranties

• By offering exclusive products

What can retailers do with the discounts received from advertising allowances?

• Use them for employee bonuses

• Pass them to customers as incentives

• Invest in new product lines

• Save them for future use

What is the ultimate goal of providing advertising allowances to retailers?

• To encourage retailers to advertise the manufacturer's products

• To increase retailer profits

• To create competition among retailers

• To reduce the manufacturer's advertising budget