Promotional Allowance

Posted in Marketing and Strategy Terms, Total Reads: 4011

Definition: Promotional Allowance

This involves reduction of the trader prices or wholesaler prices so as to incentivize or motivate the retailer to spend on advertising or promoting the product in his particular area according to the specific needs of the area.

This also serves to provide greater margins to the retailer so that he focuses on pushing the company’s product more than the competitor’s.

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