Product promotion service prices are estimated to rise slightly in the three years to 2014 due to demand growth resulting from increases in corporate profit, total advertising expenditure and the number of businesses.
Los Angeles, CA (PRWEB) August 14, 2014
The buyer power score for product promotion services is 3.7 out of 5. This score indicates a medium level of power for buyers in negotiations, although they will still need to make some concessions. “The primary negative factors hurting buyer power are a low availability of substitutes and anticipated future price increases,” according to IBISWorld business research analyst, Kayley Freshman-Caffrey. There is no direct substitute for product promotion services, which means that buyers hoping to achieve direct contact with customers do not have many other options. While they can try to manage the promotion in-house, this is impractical for many companies due to their limited capabilities related to coordinating product promotion. Buyers in the market also must contend with anticipated higher future prices. Prices are forecast to reach an all-time high by 2017; however, this increase will be gradual and marginal and will, therefore, have a limited impact on buyer power and purchasing decisions.
Additionally, there are many positive factors influencing buyer power for product promotion services. For one, market share concentration is low, leading to intense competition that causes suppliers to cater to customers to gain business over a competitor. This also makes them reluctant to implement high price increases, resulting in low price volatility, which is another advantage for buyers. “Low price volatility benefits buyers because it protects them from extreme price fluctuations and allows them to better predict and budget their product promotion costs,” says Freshman-Caffrey. Overall, the positive effects of low market share concentration and low price volatility counteract the negative effects of low availability of substitutes and future price increases to give buyers a moderate level of power in the market. Major vendors in this market include Creative Channel Services LLC, News America Marketing Properties LLC and SPAR Group Inc. For more information, visit IBISWorld’s Product Promotion Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of product promotion and field marketing services. Service providers are contracted to deploy representatives to various locations to interact with potential customers by offering product samples, promotional products or brand literature with the goals of creating product awareness, gaining new customers and building brand loyalty. Locations for promotions can include conferences, events, concerts, bars, shopping malls, retail stores and more.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.