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Consumer & Trade Promotions As Marketing Strategies
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by George Boykin; Reviewed by Jayne Thompson, LLB, LLM; Updated March 07, 2019
marketing strategies
Consumer and trade promotions help drive short-term
sales strategies
consumer demand for products by giving customers an
incentive to "buy now!" At the same time that promotions tap
advertising campaign
into consumers' desire to get a great deal – and not miss out
on something special – they offer trade partners (i.e., store
owners) additional incentives to get their help in driving
business marketing and advertising
consumer demand. Consumer and trade promotions generally
achieving goals
work best to accomplish your short-term marketing objectives
when they are aligned and integrated with other marketing
activities.
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Push and Pull Marketing
All marketing promotional strategies have one goal: Drive consumer demand. Although some marketers see trade
promotion vs. consumer promotion as an "either-or" situation, forgetting that trade partners are conduits for moving
product from suppliers to consumers, the most effective promotions address both trade and consumer priorities. In
short, unless a trade sales promotion is designed with the customer in mind, it's likely to do little more than get products
into stock rooms and warehouses, where they don't make anyone any money. Thus, marketing strategies are commonly
discussed in terms of "push" and "pull" marketing strategies, taking into account both the trade partners and consumers.
OPEN
Trade promotion strategies are push strategies. Their purpose is to push product out of warehouses to retail points of
purchase where consumers shop. Consumer promotions, commonly called sales promotions, are pull strategies. They
pull shoppers into retail stores or pull in-store shoppers to promotional display units with short-term incentives to buy
now.
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What Is a Sales Promotion?
Push Trade Sales Promotion Goals
Difference Between Push &
Pull Marketing
Different push strategies address different trade promotion objectives, though most push strategies are price-related.
Push money, also referred to as a trade allowance, essentially pays trade partners to promote certain products. This
money might include such incentives as bonuses for writing more retail orders, extra payments for building in-store
displays or additional money for advertising. Ultimately, trade allowances are used to obtain retail distribution for new
products, expand distribution, build retail inventories, reduce retail inventories, preserve or expand retail shelf space,
secure in-store displays and get additional space in retailer advertising circulars.
Pull Marketing Goals
Japanese
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Pull strategies are designed to drive consumer demand. For example, advertising, a long-term pull strategy, gives
consumers an emotional "reason to buy." Consumer promotions give consumers short-term "incentives to buy," such as
"Buy One, Get One," or BOGO, offers. Coupons, feature prices and rebate offers communicate significant value to
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shoppers for a short time period, while free samples encourage consumer trial of new products and brand switching for
established brands.
Essentially, all consumer promotions use short-term, incentive-based invitations for consumers to try, buy now, stock up,
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switch brands or engage with the brand in some way, with the ultimate goal of converting them into loyal customers.
Align Objectives with Strategies
The key to success with consumer and trade promotions is aligning them with brand objectives. Promotional strategies
for established categories and brands are different from strategies for new products or when entering new markets.
Price-elastic products – those have many alternatives and see increases in demand when prices change – respond
better to price promotions than inelastic products, or those products that don't have a lot of alternatives, such as table
salt.
Moreover, consumers tend to shop products differently based on retail outlets. Price promotions are more effective in
food outlets, where shoppers often buy on impulse. They are less effective in mass merchandisers, where shoppers
OPEN
expect everyday low prices, and drug outlets, where purchases are often planned.
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References (3)
Ad Age: Trade Promotion is No Longer Marketing's Secret Shame
MorningScore: [Case Study] Push vs Pull Marketing – What Is Best For Your Strategy?
Business.com: Why You Need a Mix of Push and Pull Marketing
About the Author
George Boykin started writing in 2009 after retiring from a career in marketing management spanning 35 years, including
several years as CMO for two consumer products national advertisers and as VP for an AAAA consumer products
advertising agency. Boykin mainly writes about advertising and marketing for SMBs.
Photo Credits
Martin Poole/Photodisc/Getty Images
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