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Hot Fire Fuel Injection Cleaner Essay

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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…
The company’s website could be set up to gather performance data. Trade shows and trade incentives will be engaged to reach these potential customers. Attending an industry trade show each quarter is optimal but due to the cost once the first year may be more realistic. Industry trade shows should include those for auto and repair shops as well as automobile trade shows. The company could benefit from an endorsement by one of the auto car racers currently using the product. Having one or more of these drivers accompany Terry to a trade show would be ideal. Trade show attendance provides Hot Fire with the opportunity to make national as well as international contacts. A budget will have to be set in place for the production of a nice visual display such as a floor display and lighting. Additionally, a table cover, pamphlets and promotional items such as business magnets will be needed. Hot Fire has the advantage of having a small product that will not have to be shipped ahead of time. That coupled with the fact that a large booth space is not required reduces some of the associated costs. Estimated expenses would be as follows: Floor display - $900 8’ Table cover - $300 Display shelf and lighting - $300 Pamphlets - $100 1000 Business card magnets - $175 Trade booth - $4000 Food and lodging per person - $550 Total trade related costs (not including mileage) - $6,325
This cost would be greatly reduced with the
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