Sales Promotion III

Trade-oriented sales promotion strategically targets channel intermediaries to push products to consumers.

It includes tools like trade allowances, cooperative advertising, cash bonuses, credit terms, and push incentives.

Trade allowances are offered to intermediaries by manufacturers in exchange for certain promotional activities.

For instance, a clothing brand offers an advertising allowance to a departmental store to increase product visibility or secure more shelf space.

Cooperative advertising involves manufacturers sharing ad costs with retailers, such as a cosmetics company splitting the price of a magazine ad with a beauty retailer.

Cash bonuses are given to retail sales associates as incentives for selling specific products. An electronics manufacturer may offer cash bonuses to store salespeople for each unit they sell.

Credit terms are provided by manufacturers, enabling retailers to sell products before payment is due, like a bill of exchange.

Lastly, manufacturers offer discounts to retailers, who pass on savings to customers, incentivizing them to purchase.

For example, a toy manufacturer may provide discounts for a store, encouraging customer sales.