Trade promotion refers to marketing activities between manufacturers and retailers to increase demand for products in stores. This includes discounts, displays, demonstrations, and bonuses. Trade allowances are rebates or fees paid to retailers to stock or remove products. Trade incentives reward retailers for performing functions like co-op advertising. Trade shows are events where buyers can learn about new products and make purchasing decisions.

1. Trade promotion

2. TRADE PROMOTIONS
Trade Promotion refers to marketing
activities that are executed in retail
between these two partners.
Trade Promotion is a marketing
technique aimed at increasing demand
for products in retail stores based on
special pricing, display fixtures,
demonstrations, value-added bonuses.

3. Retailers such as Metro are a very
important audience for brands that
want to get their products placed in
front of shoppers.

4. Types of trade promotion
Trade allowances
Trade incentives
Trade show
Trade contests

5. Trade allowance
Types of Trade Allowances
• Off-invoice allowance:
A per-case rebate paid to retailers for an order.
• Allowances Slotting fees:
Money paid to retailers to stock a new product.
• Exit fees:
Money paid to retailers to remove an item from
their SKU inventory.

6. Trade Allowance Complications
manufacturers assume that a portion of the price
reduction will be passed on to consumers.

7. Trade Contests
To achieve sales targets and other objectives, manufacturers
sometimes use trade contests. Rewards are given as contest
prizes to brokers, retail salespeople, retail stores, wholesalers,
or agents. These funds are also known as spiff money.
Norwegian Cruise Lines
used trade contests to
increase their bookings.

8. Trade Incentives
Trade incentives are similar to trade
allowances. The difference is that trade
incentives involve the retailer
performing a function in order to
receive the funds.

9. Types of trade incentives
Cooperative merchandising agreement.
 Premium or bonus pack .
Co-op advertising programs.

10. Trade shows
• Over $12 billion is spent on trade shows each
year.

11. Five Categories of Buyers Attending
Trade Shows
• Education seekers: Buyers who want to browse,
look, and learn but are not in the buying mode
• Reinforcement seekers: Buyers who want
reassurance they made the right decision in past
purchases
• Solution seekers: Buyers seeking solutions to specifi
c problems and are in the buying mode
• Buying teams: A team of buyers seeking vendors for
their business; usually are in the buying mode
• Power buyers: Members of upper management or
key purchasing agents with the authority to buy Ove

12. HOW CAN SALES PROMOTIONS BE
EFFECTIVE?
• Economic effects
• International effects
• Affective effects

13. STRENGTHS AND WEAKNESSES OF
SALES PROMOTIONS
• Strengths of Sales Promotion
• Weaknesses of Sales Promotion

14. COMMUNICATING ACROSS CULTURES