Trade Promotion - Meaning & Definition

Published in Marketing and Strategy Terms by MBA Skool Team

What is Trade Promotion?

It  is a type of marketing campaign which is aimed at retailers and wholesalers. This in turn helps the company to increase the final sales to the customers. This is done in many ways like setting up display racks, kiosks, posters and other creatives in the shopping area etc in the retail stores, placing the products near the billing counter for impulse buying. These extra initiatives in the retail stores help the company in many ways –

1) More customer awareness and retention about the brand or the product

2) Edge over the competition – getting ahead in the fight of shelf space and location

3) Effective in launching a new product

4) Increase in total sales of the product

5) Better relationship with the retailer

So if a company like P&G comes with a new deodorant it will put a kiosk in the retail store like Big Bazaar, near the entrance, with some offer like Buy 2 Get 1 free, to get more visibility.

Of course there are many other ways of trade promotion like providing special discounts to the retailers and wholesalers, free gifts and other perks.

Many trade promotion fairs and expos are also organized which are aimed to lure more retailers and wholesalers to stock these products. For example the Auto Expo which is held every once in a while is basically aimed to promote the cars to the customers as well as the dealers. Special discount offers, easy payment options, discounted accessories are provided to the dealers to stock a new launched car.

Hence, this concludes the definition of Trade Promotion along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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