A manufacturer of a well-known brand of cosmetics is offering buyback allowances to its retailers for its new line of lip colour. What is this an example of?

Question

Quizplus · Accepted Answer

Trade promotion refers to marketing activities directed towards the members of the distribution channel, such as retailers or wholesalers, rather than the final consumer. Offering buyback allowances to retailers for a new product line is a strategy to encourage these channel members to stock and promote the manufacturer's products, fitting the definition of trade promotion.

A Manufacturer of a Well-Known Brand of Cosmetics Is Offering