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Effective Trade Promotion

By Expert Author: J.Ponting

Although there are a variety of strategies that can be implemented to market goods and services to wholesalers or retailers, trade promotions can be particularly effective. By learning more about what trade promotions are and how they can boost business sales, company owners can decide whether this type of marketing strategy would be worth implementing. 

Trade Promotion-A Brief Overview 

Although broadly defined, trade promotion is basically an advertising campaign directed towards wholesalers or retailers instead of the "final consumer," or customer. During a trade promotion, the retailer and/or wholesaler is offered a special discount, free display racks, gifts, or various other incentives designed to induce conversion. 

Strategies For Trade Promotion Effectiveness

There are a variety of strategies that can be implemented to make trade promotions effective. Some of them include offering: 

1. In-store Displays.

In-store displays are a type of promotional fixture used in retail stores. There are a variety of in-store display types, including point-of-sale displays. These displays are located near the cash register and function as a great way to facilitate impulse purchases. Another type of in-store display is the feature display, and this kind is located near the end of the aisle in order to draw the customer's attention to a specific product. 

2. Temporary Price Reductions

Temporary price reduction is a strategy that involves offering the wholesaler or retailer a temporary reduction in the price of a good. This offer can exist in the form of a "cents off" promotion or a "Bonus Pack" promotion in which the wholesaler or retailer receives additional products without charge. 

3. Rebates 

Rebates afford consumers the opportunity to gain money back after making a purchase. Unlike the coupon, rebates are not used immediately. Instead, they are mailed to the manufacturer of the product. Consumers benefit from the lower price resulting from rebate use, while companies benefit as a result of the fact that every customer will not redeem the rebate offer. 

4. Premiums.

Premiums provide customers with an incentive to buy a product by offering a tangible reward such as a gift that involves no other monetary obligations. Premiums make the good sold more valuable in the mind of the customer because they include a related product that comes with no additional charges. 


While there are a plethora of marketing strategies that can be employed to appeal to wholesalers or retailers, a trade promotion can be particularly efficacious. By employing any of the strategies listed above, these types of marketing promotions can increase a business's conversion rates.

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