Trade Promotions Chapter 10 with Duane Weaver

Trade Promotions Defined The expenditures or incentives used by manufacturers and other members of the marketing channel to help push their products through to retailers…p.307

Types Trade Allowances See fig for examples Allow financial incentives to other channel members to motivate them to make a purchase Trade Contests Spiff Money E.g.: broker vs. broker, wholesaler vs. wholesaler, chain stores, chains vs. chains, individual salespersons Trade Incentives To push brand or have retailer stock more of it

Types Training Programs Vendor Support Programs Billbacks Co-op Advertising Trade Shows (3 rd highest expenditure in B2B market) Specialty Advertising i.e. give-a-ways Induces reciprocation POP (Point-Of-Purchase) Ad Displays, signs, structures, and devices used to identify, advertise, or merchandise an outlet, service or product.

Trade Promo Objectives Initial Distribution Prime Shelf Space Support Established Brands Counter Competitor Actions Increase Order Size Build Retail Inventory Reduce Excess Manufacturer Inventory Enhance Channel Relationships Enhance the IMC Program

Concerns in Using Trade Promos 1. Costs 2. Impact on small manufacturers 3. Over-reliance on trade promotions 4. Potential erosion of Brand Image

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