Management of this excess inventory is a cost to the company in terms of warehousing and capital invested. Trade shows are one of the most common types of sales promotions … Consumer and trade promotions are short-term marketing strategies. The sales promotion for building relationships with the channel partners involves some of the following activities: In exchange the retailer agrees to promote the manufacturer’s products within their stores. Promotion is an incentive tool used to drive up short term sales. The two types of sales promotion tools consumer are as follows: A. Not only seasonal product, any consumer or industrial level product can be pushed in the market when the company has excess inventory. (ii) The trade is motivated to carry a larger inventory. Objectives of Trade Promotion: (i) The trade is motivated to carry the brand. Trade Promotional Tools: (i) Price-offs or off-invoice or off-list. Companies engage in promotion expenses in order to boost sales and revenue. A trade allowance is when manufactures give retailers an allowance or a refund on their products. Samples are one of the most important tools of sales promotion. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Consumer goods companies spend substantial amounts of time and money—14 percent of revenue, according to an AMR Research … Samples help consumers verify the quality of the product. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. When data is scattered across multiple systems or is not up to date, it can be difficult for them to find th e right information at the right time. A promotion expense is a cost companies incur to market their products or services to consumers. Free samples are given to consumers to generate their interest in the product. Next we examine some of the most often used types of trade promotions and some factors marketers must consider in using them. Main Types of Trade Promotion Trade Allowances. Types of Consumer Sales Promotion tools 1. For example a trade promotion for retailers will want retailers to promote a product over its competitor’s offerings thus encouraging them to sell more of their product. Consumer promotions are used by retailers to induce customers to buy products or services. (iii) The trade is motivated to use POP tools, and price reductions. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. Trade-promotion tools: A higher proportion pie is devoted to trade-promotion tools than to consumer promotion, with media advertising capturing the rest. Consumer & Trade Promotions As Marketing Strategies. Promotion can be launched directed at consumer or trade. Samples are defined as offers to consumers of a small amount of a product for trial. (iv) The trade is motivated to push the product. When it comes to Trade Promotion Management (TPM), there are typically a number of stakeholders involved from finance to marketing and the executive team. Trade Promotion Management (TPM) typically refers to one or more software applications that assist companies in managing their complex trade promotion activity. Samples. Trade promotions include trade shows, conventions, event marketing, trade allowances, training, and special incentives given to retailers to market particular products and services, such as extra money, in-store displays, and prizes. Trade Promotion Management is a challenge faced by most CPG/FMCG companies around the globe. It is one of the objectives of trade promotions that the excess inventory lying with the company should be liquidated. 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