What is Trade Promotion in Retail? Explained

A trade promotion refers to marketing activities and incentives designed to boost the sales of products within the supply chain. These promotions target retailers, wholesalers, or distributors rather than end consumers. Retailers collaborate with manufacturers to implement strategies such as discounts, special pricing, or promotional events to encourage bulk purchases or preferential shelf placement. Effective trade promotions can stimulate product movement, enhance brand visibility, and foster stronger partnerships between manufacturers and retailers, ultimately contributing to increased sales and mutual business success.