Trade promotions offer savings to an industrial customer, while trade allowances are cash incentives that wholesale salespeople earn to push the product through to retailers.

Question

Quizplus · Accepted Answer

Trade promotions are incentives offered by manufacturers to wholesalers or retailers to encourage them to stock and sell more of their product, while trade allowances are discounts or financial incentives given to retailers or wholesalers to encourage them to stock, promote, or sell a product. Both terms refer to incentives aimed at the supply chain rather than end consumers, but they are not defined by the distinction of savings versus cash incentives for salespeople specifically.

Trade Promotions Offer Savings to an Industrial Customer, While Trade