Trade Promotions #4
Today’s Learning Objectives:
Identify Industrial side of the business world
Define Trade Promotion
Identify and understand all Trade Promotion options
No Book Today – Take out note paper upon arrival
We are consumers and see the Retail side of business
B e h i n d
t h e
s c e n e s
Trade (Industrial) side of business
Manufacturers
Wholesalers
Retailers
Build & Ship
Store & Ship
Display & Sell
Products are sold In this direction
Trade Promotions are said to “Push” product through the marketplace
Trade Promotions – sales promotions
designed to get support for a product from
Manufacturers, wholesalers and retailers
B e h i n d
W h a t
t h e
t h e
s c e n e s
c o n s u m e r
s e e s
#1 Promotional allowances – cash payments or
discounts as rewards for purchase and/or sales
Result?
More product stocked
Consumer Promotion or Sale price
Wholesaler
Sells shoes $15 each
Promotional allowance
Buy 100 pair at $12
Retailer buys more shoes,
earns higher profit and/or
Saves consumer
Result in Consumer Promotions?
Coupons, Deals, etc.
#2 Cooperative advertising – Helping
retailer pay for advertising
Result?
Provide funding
Consumer Advertising
#3 Slotting allowances – Helping pay for
product shelf placement
Result?
Provide funding to pay for prime retail location
Product placed on End Caps or other high volume location
Store Aisles
#4 Sales force promotion – cash payments
to sales people for sales performance
Result?
Motivated sales people!
More product sold
#5 Trade shows and conventions –
Direct participation by manufacturer
Result?
Product exposure
Acquire more industrial customers
More product sold