What does 'trade promotion' refer to?

Trade promotion specifically refers to the incentives provided to retailers or wholesalers aimed at encouraging them to promote a product. These incentives can take various forms, such as discounts, allowances, or promotional support, designed to boost sales and enhance product visibility in retail outlets. By focusing on the trade channel, manufacturers aim to create favorable conditions for their products in the marketplace, ensuring that retailers have a strong incentive to prioritize their offerings over competitors.

This approach is essential for establishing strong relationships between manufacturers and retailers, as well as facilitating the product’s reach to end consumers. It recognizes the role that intermediaries play in the distribution process and aims to motivate them to push particular products through various marketing channels effectively.

The other options focus on consumer-driven incentives, advertising strategies, or contractual agreements, which do not align with the definition of trade promotion.