Hot Fire Fuel Injection Cleaner Essay

703 Words 3 Pages
Manufacturers utilize trade promotions to encourage retailers to purchase their products. The primary types of trade promotions are trade allowances, trade incentives, trade shows, and trade contests. Each type of promotion provides manufacturers with a unique opportunity to stimulate sales. Trade allowances for instance provide retailers with discounts on their invoices. According to Clow & Baack (2014), “Approximately 35% of all trade dollars goes to off-invoice allowances” (p. 341). Trade allowances also include spotting fees and exit fees. These are fees that the manufacturer pays to the retailer to stock a product or remove a product from the shelf. It is assumed that retailers will pass on these discounts to the consumers, …show more content…
Manufacturers utilize trade promotions to encourage retailers to purchase their products. The primary types of trade promotions are trade allowances, trade incentives, trade shows, and trade contests. Each type of promotion provides manufacturers with a unique opportunity to stimulate sales. Trade allowances for instance provide retailers with discounts on their invoices. According to Clow & Baack (2014), “Approximately 35% of all trade dollars goes to off-invoice allowances” (p. 341). Trade allowances also include spotting fees and exit fees. These are fees that the manufacturer pays to the retailer to stock a product or remove a product from the shelf. It is assumed that retailers will pass on these discounts to the consumers, unfortunately, that is not always the case. Channel members may use trade contests in which participants win cash or prizes as an incentive to foster sales. Trade incentives involve Cooperative Merchandising Agreements (CMA), premiums and bonus packs and/or cooperative advertising. Lastly, manufacturers can showcase their product in person at trade shows. This venue provides the customer with the opportunity to compare products and the manufacturer can scope out the competition. This is also a great time for manufacturers and vendors to network.
Trade Promotions for Hot Fire First, here is some background information on this trade program. Terry Walsh is the producer and owner of Hot Fire Fuel Injection Cleaner and has asked for help
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