Trade Promotions: Advantages and How it Differs From Consumer Promotions

Trade Promotions
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Trade Promotions
Trade promotions are promotional tactics directed to wholesalers and retailers and can offer immense advantages to manufacturers. A major advantage of trade promotions is that they immediately increase sales (Ogden & Ogden, 2014). With trade promotions, intermediaries are incentivized to purchase more. Trade promotions are also associated with increased sales when a new product is introduced into the market. For example, when manufacturers have developed a new product, they can offer trade promotions that highlight innovative features and benefits, consequently increasing sales (Ogden-Barnes & Minahan, 2015). Another advantage that a manufacturer can reap from trade promotion is easy tracking, as the utilization of funds over time can be followed (TABS Analytics, 2014). With easy tracking, a manufacturer can easily make important decisions that impact business operations.
Trade promotions and consumer promotions are part of sales promotions, with the former denoting tactics directed toward wholesalers and...