Trade Promotion
About Trade PromotionActivities executed between manufacturer &
retailer.
Aimed : to increase demand of products.
Helpful in increasing product visibility and brand awareness with consumers.
Act as a leverage in introducing new product.
Types of Trade Promotion
In-store displays Consumer behaviour
• Creates Awareness
• Brings attention to promoted product
• Encourages impulse buying
Temporary price reduction
A short-term price reduction to increase sales of a product for a specific time period.
Consumer behaviour
• Pays a lower price hence impulse buying
Coupons
Consumer behaviour
• Creates Brand awareness
• Prompts customer to visit the brand again
• Makes purchase more desirable
Contest & sweepstakes
Consumer behaviour• Encourages bulk buying
• Creates brand awareness
Rebates
Consumer behaviour
• Gets attracted due to lowered price
Premium
Consumer behaviour• Offer more valuable
• Tangible benefit (No obligations gift)
Sampling
Consumer behaviour
• Reduces consumers’ apprehension about buying a new product
Free wine tasting
Trade Promotion Analytics
Issues In Trade Promotion
Lack of accurate & timely information.
Inability to plan promotions based on analytics
Ineffective organization and partner integration
Ineffective organization and partner integration
Attractive deals and promotions help big retailers grow
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