Trade Promotions
Chapter Overview
Nature of trade promotions
Types of trade promotions
Objectives of trade
promotions
Concerns in using trade
promotions
Discussion Slide
10-1
Trade Promotions
Expenditures or incentives used by
manufacturers and channel members to push
goods through the channel.
7% to 10% of sales revenue goes for trade
promotions.
Approximately 50% of total promotional
dollars spent.
To be effective, must be integral part of IMC
program.
10-2
Marketing Budgets
Advertising
26%
Consumer Promotions
24%
Trade Promotions
50%
10-3
FIGURE
10 . 2
Trade allowances
Trade contests
Trade incentives
Training programs
Vendor support programs
Trade shows
Specialty advertising
Point-of-purchase displays
10-4
FIGURE
10.3
Trade Allowances
Off-invoice allowance: a per-case rebate
10-6
Trade Contests
FIGURE
10.4
Trade Incentives
Cooperative merchandising agreement
(CMA)
Corporate sales program (CSP)
Producing plant allowance (PPA)
Back haul allowance (BHA)
Cross-dock or Pedal runs
Premium or bonus pack
10-8
Training Programs
Manufacturer provides training to
wholesalers or retailers salespeople.
10-9
10-10
FIGURE
10.5
Cooperative Advertising
Trade Shows
International CES
The Super Show
Miami International Boat Show & Strictly Sail
International Housewares Show
Mid-America Trucking Show
10-12
Manufacturing (18.6%)
Medical (10.3%)
Engineering (7.7%)
Food (7.0%)
Retail/Distributors (15.8%)
Computer (4.6%)
Consumer (11.0%)
Education (4.6%)
Communications (5.3%)
Source: Danica Vasos, Industry Profile, Expo, January 2000, pp. 52-55
10-13
FIGURE
10.7
13
10
10
10
10
5
0
10-14
FIGURE
10.9
FIGURE
10.2
24
30
25
17
19
20
11
15
6
10
5
0
10-16
FIGURE
10.10
10-17
10-19