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Q. Explain about Effect on Distribution cost ?
Production cost is one feature of cost picture the other aspect is distribution cost. Expenditure higher amounts on advertising increase distribution cost in absolutely terms. However the advertising result in reduction in personal selling expenses as buyers are already aware and have thorough knowledge of product and they come to purchase the product at their own therefore lesser personal selling is required. Furthermore this increase in sales per unit selling distribution cost comes down.
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explain the various approaches that are followed by fmcg companies in test marketing
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