Marketing Economies


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Marketing Economies: A large firm can secure economies in its purchasing and sales. It can purchase its requirements in bulk and thereby get better terms. It usually receives prompt deliveries, careful attention and special facilities from its suppliers. This is sometimes due to the fact that a large buyer can exert more pressure·, at times compulsive in nature, for specially favored treatment. It can also get concessions from transport agencies. Moreover, it can appoint expert buyers and expert salesmen. Finally, a large firm can spread its advertising cost over bigger output because advertising costs do not rise in proportion to a rise in sales.

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