Transcript Chapter 10 - Trade Promotions

Trade Promotions
Chapter 10 with Duane Weaver
Trade Promotions Defined
The expenditures or incentives used by
manufacturers and other members of the
marketing channel to help push their
products through to retailers…p.307
Types
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Trade Allowances
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Trade Contests
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See fig. 10.3 for examples
Allow financial incentives to other channel members to
motivate them to make a purchase
Spiff Money
E.g.: broker vs. broker, wholesaler vs. wholesaler, chain
stores, chains vs. chains, individual salespersons
Trade Incentives
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To push brand or have retailer stock more of it
Types
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Training Programs
Vendor Support Programs
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Trade Shows
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(3rd highest expenditure in B2B market)
Specialty Advertising
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Billbacks
Co-op Advertising
i.e. give-a-ways
Induces reciprocation
POP (Point-Of-Purchase) Ad
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Displays, signs, structures, and devices used to identify,
advertise, or merchandise an outlet, service or product.
Trade Promo Objectives
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Initial Distribution
Prime Shelf Space
Support Established Brands
Counter Competitor Actions
Increase Order Size
Build Retail Inventory
Reduce Excess Manufacturer Inventory
Enhance Channel Relationships
Enhance the IMC Program
Concerns in Using Trade Promos
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Costs
Impact on small manufacturers
Over-reliance on trade promotions
Potential erosion of Brand Image
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