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The 5 Main Types of Trade Promotions

Trade promotion managers play an essential role in the success of any business, overseeing promotions and partnerships to boost sales. As a trade promotion manager, you need to have a comprehensive understanding of the different types of trade promotions available. From consumer-facing activities such as seasonal discounts or buy one get one free offers, to rebate schemes for B2B clients; all outcomes must be managed and optimized in order for your company’s products or services to gain maximum exposure with minimal expenditure. In this blog post, we’ll cover the five main types of trade promotions that could bring great benefits to your company if they’re managed correctly.

Price Promotion

Offering discounts or lower prices to encourage customers to buy more.​

Everyone loves a good bargain, and price promotions provide just that. Whether it’s a percentage off or a lowered price, customers are motivated to purchase more when they feel like they are getting a good deal. Companies often use price promotions to increase sales during slower periods or to clear out inventory. But it’s not just about the short-term gains. Price promotions can also lead to long-term customer loyalty if done correctly. Customers feel valued when they receive discounts and are more likely to return for future purchases. So, the next time you see a sale sign or receive a promo code, take advantage and reap the benefits of a good deal.

Bonus Packs

Providing extra product with each purchase, such as "Buy two, get one free".

Everyone loves getting a little something extra, and bonus packs are the perfect way to do just that! By offering additional products with each purchase, customers feel valued and appreciated. Whether it’s buying two items and getting a third for free, or receiving a free sample with a purchase, bonus packs add a special touch to the shopping experience. Not only do they increase customer satisfaction, but they can also drive sales and encourage repeat business. So why not add a little bonus to your next purchase and see what extra surprise you might receive?

Point-of-Sale (POS) Promotions

Creating displays near the checkout counter that encourage customers to buy more of a particular product at the store.

As we make our way through the checkout line, we are surrounded by a variety of products. But have you ever noticed how some items seem to catch your eye more than others? That’s no accident. Point-of-Sale (POS) promotions are a strategic marketing tactic designed to encourage customers to make additional purchases before leaving the store. By creating eye-catching displays near the checkout counter, retailers are able to capture the attention of customers and encourage them to buy more of a particular product. These promotions can be anything from limited-time offers to bundling deals, and they are always tailored to the buying habits of the store’s specific customer base. So the next time you find yourself tempted by a POS promotion, remember that it’s all part of the retailer’s plan to increase sales and keep you coming back for more.


Redeeming coupon for added value.

Another effective promotion strategy is the use of coupons and rebates. Coupons are issued in advance, typically through newspaper circulars, online marketing campaigns or direct mailings, and offer customers a predetermined discount when they purchase certain items. Rebates are slightly different as customers receive money back after making their purchase. Both of these tactics are designed to entice customers and encourage them to make impulse purchases. Coupons and rebates also help businesses keep track of customer preferences, enabling companies to better understand the buying habits of their target demographics. So, the next time you see a coupon code or receive a rebate offer, consider taking advantage of it – you never know just how much money you could be saving!


Giving away samples of a product to potential customers in order to increase sales.

Trying a product before buying it can be a game-changer. That’s where samples and demonstrations come in handy. Businesses aim to engage new customers and increase sales not only by advertising but by offering a touch and feel experience. Whether it’s a free dessert at a restaurant, a makeup trial at the beauty counter or test driving a new car, these demonstrations allow customers to experience the product firsthand. The aim of this marketing technique is to convince potential customers that the products will fulfill their needs and be worth their purchase. Samples and demonstrations are a win-win situation for both the business and the customer, as they provide businesses with new customers and customers with assurance that they are buying the best of the best.

Set the Promotional Strategy that meets your goals

To sum up, there are five main ways retailers can employ pricing promotions to boost sales. Price promotions allow businesses to offer discounts or lower prices, bonus packs provide extra product with each purchase, point-of-purchase (POP) promotions create displays near the checkout counter encouraging customers to buy more of a particular product, trade allowances provide a discount on the price of goods or services when a customer meets certain criteria, and samples/demonstrations give away free samples of products or demonstrate how they work. Employing these various pricing promotions can help increase sales and build customer loyalty over time. It’s important for retailers to understand what promotional strategies will be most effective in driving sales, as well as having the right equipment and personnel to oversee them. With careful planning and execution, overall profitability and customer satisfaction can be increased.