Trade promotions

Trade promotions are used by the producer or other members of the distribution channel to motivate the sale of a product that will ultimately be resold. An example of trade promotion is a trade show which can be international, national or local. Trade promotions have numerous benefits to a business when the strategies are correctly used (Clow & Baack, 2012). The paper aims to provide the advantages of trade promotions and provide a comparison between trade promotions and consumer promotions.

Advantages of trade promotions

Trade promotions allow a company to differentiate its product from the competition. In a market, there are always several retailers and increased competition, and hence it is necessary for a company to promote its products since this is where a healthy relationship is created with the retailers. Trade promotions also encourage increases sales volume by enhancing the rate of purchase of the product. Trade promotions improve visibility and consumer awareness on a particular product resulting in higher sales and the introduction of new consumers who are willing to purchase and experience the product (Clow & Baack, 2012).  Through trade promotions, a business can explore new market segments through an extensive retailer level marketing; hence it allows entry into new markets. A better relationship is developed between the business and the retailers. When a manufacturer provides incentives to the retailers, the relationship between a retailer and the company is improved which is beneficial to the company and the retailers mainly in the long run.

Differences and similarities between trade and consumer promotions

Trade promotions are marketing activities carried out between the manufacturers and the retailer. On the other hand, consumer promotions are marketing activities which are focused on encouraging the consumer to purchase a particular product. Trade promotions are significant in assisting a company in differentiating a product, improving visibility and increase sales volume (Clow & Baack, 2012). Whereas consumer promotions are used during the launch of a product to increase the rate of brand awareness, sales, and market acceptance. In both trade promotions and consumer promotions incentives are provided with a common aim to boost sales.

Do you need high quality Custom Essay Writing Services?

Custom Essay writing Service