Trade Promotions Boost Hot Fire Awareness

1426 Words Feb 15th, 2016 6 Pages
Trade Promotions Boost Hot Fire Awareness
Introduction
Trade promotion is defined as the process of planning, budgeting, presenting and executing incentive programs, which occur between the manufacturer and the retailer to enhance sales of specific products. These promotions help the manufacturer or channel member to push the product through the distribution channel. (Clow, & Baack, 2014.) For example, a manufacturer like that of Hot Fire pays a retailer to feature the product in the retailer’s weekly newspaper advertising, not to mention covering expenses to build retailer product promotional displays within the store. Both tactics are considered trade promotions. Before any consumer promotions can be directed to the end-user with coupons, contests, or rebates, manufacturer trade promotions toward retailers must be fully understood regarding the associated costs, focusing on what will increase profits and a return on investment (ROI), rather than short-term revenues. Trade promotions often constitute the second largest expense for a manufacturer after the cost-of-goods-sold. (CLOW) Today’s consumer is less interested in shopping, under greater time pressure, and less inclined to prepare a shopping and is more susceptible to prominent displays in the store and more likely to buy whichever of several acceptable brands happens to be on deal (Buzzell, 1990). This critical thinking paper will focus on the overall trade promotion process for Hot Fire Fuel Injector Cleaner, and…
Open Document