Selling Cost: 

1. Selling Cost is the discussion of “ Product differentiation”, we can infer that the producer under monopolistic competition has to incur expenses to popularize his brand. This expenditure involved in selling the product is called selling cost. According to Prof. Chamberlin, Selling cost is “The cost incurred in order to alter the position or shape of the demand curve for a product”.

2. Most important form of selling cost is advertisement. Sales promotion by a advertisement is called non – price competition.

3. Product differentiation through effective advertisement is another method. This is known as sales promotion. Be frequently advertising the brand of the product through Press, Film, Radio, and TV. The consumers are made to feel that the brand produced by the firm in question is superior to that of other brands sold by other firms.

4. Product differentiation may also be effected by offering customers some benefits with the sale of the product. Facilities like free servicing, home delivery, acceptance of returned goods, etc.

Example: Most important form of selling cost is advertisement [This is known as sales promotion]. By frequently advertising the brand of the product through press, film, radio, T.V.