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7 Important Promotion tools in Dealer Sales Promotion
Important promotion tools in dealer sales promotion
Dealer sales promotion or Trade promotion is employed when products are sold through the
retailers or wholesalers. Dealer sales promotion tools include buying allowance, merchandise
allowance, price deals, premium, cooperative advertising, sales contests, point of purchase, etc.
Dealer Sales Promotion - 7 Important promotion ToolsDealer Sales Promotion – 7 Important
promotion Tools
1. Buying allowance
Buying allowance is granted to those dealers who purchase in stipulated period of time. It is very
much useful in introducing new products to consumers. It motivates dealers to buy in huge
quantity, dealers get immediate benefit in the form of price reduction.
2. Merchandise allowance
Manufacturer may offer an allowance in return for the retailer’s agreement to feature the
manufacturer’s product in some way. For example, an advertisement allowance compensates
retailers for advertising the product. A display allowance compensate the retailers for the usage
of special displays.
3. Price deals
Price deals relate to the quantity of purchase. In addition to regular discounts, dealers are allowed
special discount for a specified quantity of purchase. Thus, special discount is over and above
regular discount given to dealers.
7 Important Promotion tools in Dealer Sales Promotion
Important promotion tools in dealer sales promotion
Dealer sales promotion or Trade promotion is employed when products are sold through the
retailers or wholesalers. Dealer sales promotion tools include buying allowance, merchandise
allowance, price deals, premium, cooperative advertising, sales contests, point of purchase, etc.
Dealer Sales Promotion - 7 Important promotion ToolsDealer Sales Promotion – 7 Important
promotion Tools
1. Buying allowance
Buying allowance is granted to those dealers who purchase in stipulated period of time. It is very
much useful in introducing new products to consumers. It motivates dealers to buy in huge
quantity, dealers get immediate benefit in the form of price reduction.
2. Merchandise allowance
Manufacturer may offer an allowance in return for the retailer’s agreement to feature the
manufacturer’s product in some way. For example, an advertisement allowance compensates
retailers for advertising the product. A display allowance compensate the retailers for the usage
of special displays.
3. Price deals
Price deals relate to the quantity of purchase. In addition to regular discounts, dealers are allowed
special discount for a specified quantity of purchase. Thus, special discount is over and above
regular discount given to dealers.
