Using point-of-purchase displays in retail locations helps drive sales of low-cost items. These point-of-purchase displays may be candy, magazines, or sweepstakes. Similarly, trade oriented sales promotion focuses on dealer networks to motivate them to sell the company’s products. The following are some examples of trade oriented sales promotion:
Incentives: Cash bonuses are often given to employees to encourage higher sales. However, the requirements are often hard to meet, especially if the target is extremely low. This type of promotion isn’t right for every company. Incentives can demotivate sales staff if they’re treated unfairly. Ideally, sales targets should be set in a way that motivates staff without using unethical means. Trade oriented sales promotion is the best way to ensure that your employees have the right motivation to achieve targets.
Trade allowances: Special financial incentives offered to wholesalers and retailers are a great way to attract consumers. Two-thirds of shoppers make their purchasing decisions in the store, so trade allowances allow manufacturers to capitalize on this fact. Often, product suppliers help retailers display their products, while premiums are given free with other purchases. These trade allowances are an important marketing strategy for many companies. The following are some examples of trade oriented sales promotion.
Non-FB sales promotion: Non-FB trade promotions are not strictly franchise-building, but they can help brands create excitement and increase brand loyalty. A popular consumer durable company, for instance, highlights its dealers in newspaper ads to attract consumers. The same company uses a contest to re-establish a struggling brand, such as Georgia-Pacific Corporation. In addition, trade promotions may also be used to build a customer base and expand the reach of existing channels.
Trade-oriented sales promotion is a common tool used by B2B companies to expand their customer base. The customer base refers to the businesses that purchase the company’s products. A strong customer base will help a company reach the heights of success. A trade promotion can also be beneficial for startups, as it can attract other businesses to purchase their products. Depending on the nature of the trade promotion, positive responses from customers can create long-term relationships.
Sales promotion can be broken down into two distinct types: consumer-oriented and trade-oriented. Both strategies are part of an integrated marketing communications strategy and have different purposes. Trade-oriented sales promotion helps a company empower a distribution channel to push the product directly to the end customer. The two types of promotions are different and each has its benefits and drawbacks. Here is a look at each. Find out which one is most effective for your business.
Trade-oriented sales promotions are generally directed at dealers. In the push strategy, companies encourage resellers to carry their products and give them priority over competing brands. These promotions aim to drive instantaneous sales. Examples of trade-oriented sales promotion may include free samples, extra cases for every five-case purchase, cash discounts, and straight cash payments. The other type of trade-oriented sales promotion is used to support price reduction to consumers.