Trade Promotions #4 Today’s Learning Objectives: Identify Industrial side of the business world Define Trade Promotion Identify and understand all Trade Promotion options No Book Today – Take out note paper upon arrival

B e h i n d t h e s c e n e s Trade (Industrial) side of business We are consumers and see the Retail side of business ManufacturersRetailersWholesalers Build & ShipStore & ShipDisplay & Sell Products are sold In this direction Trade Promotions are said to “Push” product through the marketplace

Trade Promotions – sales promotions designed to get support for a product from Manufacturers, wholesalers and retailers B e h i n d t h e s c e n e s W h a t t h e c o n s u m e r s e e s

#1 Promotional allowances – cash payments or discounts as rewards for purchase and/or sales Result? More product stocked Consumer Promotion or Sale price Wholesaler Sells shoes $15 each Promotional allowance Buy 100 pair at $12 Retailer buys more shoes, earns higher profit and/or Saves consumer Result in Consumer Promotions? Coupons, Deals, etc.

#2 Cooperative advertising – Helping retailer pay for advertising Result? Provide funding Consumer Advertising

#3 Slotting allowances – Helping pay for product shelf placement Result? Provide funding to pay for prime retail location Product placed on End Caps or other high volume location Store Aisles

#4 Sales force promotion – cash payments to sales people for sales performance Result? Motivated sales people! More product sold

#5 Trade shows and conventions – Direct participation by manufacturer Result? Product exposure Acquire more industrial customers More product sold