Which advantage enables larger businesses to conduct better promotional activities?

The correct answer highlights the concept of Marketing Economies of Scale, which refers to the advantages larger businesses have in managing and executing their marketing efforts more effectively than smaller firms. Larger companies can spread the costs of marketing campaigns over a greater volume of sales, allowing them to invest more resources into comprehensive promotional activities.

With a larger customer base, these companies can access a variety of marketing channels and techniques that might be prohibitively expensive for smaller businesses. For instance, they can afford to run national ad campaigns, utilize advanced digital marketing strategies, and hire specialized marketing teams, all of which contribute to a broader and more effective reach.

Additionally, larger businesses often have established brand recognition, enabling them to leverage their marketing efforts further. They can engage in more impactful promotional strategies—such as sponsorships, large-scale events, and extensive online campaigns—which can generate higher returns on investment compared to what a smaller company could achieve.

In summary, Marketing Economies of Scale provide larger businesses with the capacity to conduct more effective promotional activities, maximizing their outreach and improving overall marketing efficiency.