Chapter 17: Trade-Oriented Sales Promotions Chapter 17: Trade-Oriented Sales Promotions.

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Presentation transcript:

Chapter 17: Trade-Oriented Sales Promotions Chapter 17: Trade-Oriented Sales Promotions

I. Objectives (497) II. Types A. Trade Allowances (note "pass along" of discounts) 1. Off-Invoice (temporary price reduction- most frequent -note forward buying and diverting) 2. Bill-back (promotional allowance) 3. Slotting and Exit Fees* 4. Efforts to rectify trade allowance problems a. Efficient Consumer Response (ECR) b. Category Management c. Everyday Low Pricing (EDLP) [Backdoor/Manufacturer, Frontdoor/Retailer] d. Pay-for-Performance Programs (i. e., scanner- verified trade promos) e. Account-Specific Marketing

B. Comparative Advertising and Vendor Support Programs 1. Cooperative Advertising 2. Vendor Support Programs (Retailier initiated) C. Trade Contests (to meet sales goals) and Incentives (to perform tasks, e.g., "Push Money" or "Spiffs") D. Trade Shows (note digital/online tradeshows) -note "gray" areas, e.g., salesperson or company "gifts," etc. Discussion Questions: 3, 4 US Trade Promotion Practices and Satisfaction