The
Definition Of

Trade promotion

Trade promotion refers to sales promotion tools used to persuade resellers to carry a brand, give it shelf space, promote it in advertising, and push it to consumers. Shelf space is so scarce these days that manufacturers often have to offer price-offs, allowances, buy-back guarantees, or free goods to retailers and wholesalers to get products on the shelf and, once there, to keep them on it.


Trade promotion is the sales promotion geared to marketing intermediaries rather than to final consumers.

 

Share it:

More from this Section

  • Market-skimming pricing
    Market-skimming pricing (price skimming)- setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay...
  • Infomercial
    An infomercial is a television commercial that runs as long as a television show and usually includes a pitch selling an item directly to the public.
  • Cannilbalization
    Cannilbalization refers to the situation in which one product sold by a company takes a portion of its sales from other company products.
  • Captive product pricing
    Captive product pricing— setting a price for products that must be used along with a main product, such as blade for razor, games for a videogame console and printer cartridges.
  • Insurable risk
    Insurable risk is the requirement that a pure risk must meet for an insurer to agree to provide coverage.
  • Customer equity
    Customer equity is the total combined customer lifetime values of all of the company’s current and potential customers.
  • Specialty advertising
    Specialty advertising is the promotional items that prominently display a firm’s name, logo, or business slogan.