Question

Using the Lerner Index, explain why a company might enter into promotional advertising for its product. Be clear what part of the Learner Index the company hopes to affect. Do they hope to increase it or decrease it? – Be specific.

Answer 1

Companoes eneter promotional marketing aggressively to penetrate market and increase their market power which helps increase in Lerner index. Marketing promotions help companies gain brand awareness, tap the untapped geographical regions, increase customer base and revenue pie and thus grow their net profitability which helps corner higher market share and create dominance over competitors.

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