What is the purpose of trade promotions?

The purpose of trade promotions primarily revolves around building support from intermediaries, such as wholesalers and retailers. These promotions are strategic incentives provided by manufacturers to encourage these intermediaries to stock their products, increase shelf space, and promote the products to consumers. This support can take various forms, including discounts, free merchandise, or financial allowances, aimed at incentivizing intermediaries to prioritize certain brands or products.

By enhancing the commitment of retailers and distributors, trade promotions help ensure that the products are more readily available and visible to consumers, ultimately driving sales. This type of promotion is crucial for creating strong partnerships in the distribution channel, which can lead to better positioning of products in stores, increased sales volume, and improved overall market penetration.