What is a trade promotion?
Trade promotion is a marketing activity that B2-B companies engage in to attract more customers. These activities may include promotional discounts, financial discounts, and contests. B2B companies partner with specific industries, including resorts, retail stores, restaurants, and grocery stores.
Six types of trade promotions:
If you want to know more about your incentive options, here are five types of business promotions you can reference that are practiced by Zion Exhibitions, best exhibition company in Delhi:
Here are six types of business promotions that a business can manage.
1) Discounts / Sales Margin Increase:
Any business's number 1 trade promotions are to offer discounts or increase the margin contributed to the reseller. This is especially useful for small business owners who don't have the time or workforce to run company-managed trade promotions at the dealership.
2) Sales Staff Incentives / Gifts:
Another great type of business promotion is to incentivize sales staff. Ultimately, the sales staff is the one who is going to be in contact with the customer. The sales staff are also pleased whenever monetary rewards are announced, and the more aggressive ones will go out of their way to achieve the goals.
3) Coupons / discounts:
Coupons are always attractive to end customers as they guarantee a guaranteed discount at the retailer or reseller. It is also a method to drive traffic to the retailer's store and can be mainly used when the outlet is brand new or losing to a competitor.
4) Competition between dealers:
A fantastic way to motivate your dealers to perform better is to keep dealer competitions going. These dealer competitions can be short-term or long-term. Short-term ones can be regional; for example, the top reseller in territory X gets a free ad in a company newspaper or free incentives for all of their resellers.
5) Exhibitions / Fairs:
In one of the companies I worked for, we used to have regional meetings between distributors and their dealers. These meetings made it possible to present all the products that we had in our company and they come together at Exhibition. And we used to keep the lunch for all the retailers that reported to the distributors. During these sessions, we encountered many questions about the products related to the Construction material expo.
6) Cooperative Advertising:
Look at the newspaper advertisements made by some popular consumer durables companies like LG, Sony, and others. You will see that they always highlight regional dealers in their advertisements. Companies like Apple, which are selective in their selection of resellers and only have high-end outlets, directly sponsor their channel resellers to run newspaper ads.
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