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.

 

Executive Summary

Pricing Environment

Price Fundamentals

Benchmark Price

Pricing Model

Price Drivers

Recent Price Trend

Price Forecast

Product Characteristics

Product Life Cycle

Total Cost of Ownership

Product Specialization

Substitute Goods

Regulation

Quality Control

Supply Chain & Vendors

Supply Chain Dynamics

Supply Chain Risk

Imports

Competitive Environment

Market Share Concentration

Market Profitability

Switching Costs

Purchasing Process

Buying Basics

Buying Lead Time

Selection Process

Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

 

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.

 

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