Sales Promotion

Trade Sales Promotions

As note in the Promotion Decisions Tutorial, certain promotions can help “push” a product through the channel by encouraging channel members to purchase and also promote the product to their customers.  For instance, a trade promotion aimed at retailers may encourage retailers to instruct their employees to promote a marketer’s brand over competitors’ offerings.  With thousands of products competing for limited shelf space, spending on trade promotion is nearly equal that spent on consumer promotions.

Many sales promotions aimed at building relationships with channel partners follow similar designs as those directed to consumers including promotional pricing, contests and free product.  In addition to these, several other promotional approaches are specifically designed to appeal to trade partners.  These approaches include:

1. Point-of-Purchase Displays
2. Advertising Support Programs
3. Short Term Allowances
4. Sales Incentives or Push Money
5. Promotional Products
6. Trade Shows

Below is a discussion of each approach.