Consumer goods companies spend substantial amounts of time and money—14 percent of revenue, according to an AMR Research … When it comes to Trade Promotion Management (TPM), there are typically a number of stakeholders involved from finance to marketing and the executive team. Trade Promotional Tools: (i) Price-offs or off-invoice or off-list. Free samples are given to consumers to generate their interest in the product. Samples are defined as offers to consumers of a small amount of a product for trial. (ii) The trade is motivated to carry a larger inventory. Sales promotion is generally defined as those marketing activities that provide extra values or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Next we examine some of the most often used types of trade promotions and some factors marketers must consider in using them. When data is scattered across multiple systems or is not up to date, it can be difficult for them to find th e right information at the right time. Manufacturers use a variety of trade promotion tools as inducements for wholesalers and retailers. Samples. Sales Promotion. Promotion can be launched directed at consumer or trade. Objectives of Trade Promotion: (i) The trade is motivated to carry the brand. (iii) The trade is motivated to use POP tools, and price reductions. Consumer and trade promotions are short-term marketing strategies. Companies engage in promotion expenses in order to boost sales and revenue. Samples help consumers verify the quality of the product. Trade Promotion Management (TPM) typically refers to one or more software applications that assist companies in managing their complex trade promotion activity. Trade promotions include trade shows, conventions, event marketing, trade allowances, training, and special incentives given to retailers to market particular products and services, such as extra money, in-store displays, and prizes. Consumer promotions are used by retailers to induce customers to buy products or services. Consumer incentives could be samples, coupons, free trial and demonstration. Trade-promotion tools: A higher proportion pie is devoted to trade-promotion tools than to consumer promotion, with media advertising capturing the rest. Not only seasonal product, any consumer or industrial level product can be pushed in the market when the company has excess inventory. Types of Consumer Sales Promotion tools 1. A trade allowance is when manufactures give retailers an allowance or a refund on their products. Management of this excess inventory is a cost to the company in terms of warehousing and capital invested. Consumer-oriented Promotion Tools B. Trade-oriented Sales Promotion. A promotion expense is a cost companies incur to market their products or services to consumers. Trade Promotion Management is a challenge faced by most CPG/FMCG companies around the globe. The two types of sales promotion tools consumer are as follows: A. The focus of advertising to create reason for purchase the focus of promotion is to create an incentive to buy. For example a trade promotion for retailers will want retailers to promote a product over its competitor’s offerings thus encouraging them to sell more of their product. Promotion is an incentive tool used to drive up short term sales. It is one of the objectives of trade promotions that the excess inventory lying with the company should be liquidated. (iv) The trade is motivated to push the product. Consumer & Trade Promotions As Marketing Strategies. Samples are one of the most important tools of sales promotion. 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