A trade incentive involves the retailer performing a function in order to receive an allowance.

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A trade incentive is a type of promotion where a manufacturer or supplier provides an allowance or payment to a retailer or distributor for performing a particular function or achieving a certain level of sales or distribution. This function could include activities such as stocking or displaying a product, promoting it through advertising or marketing, or agreeing to carry a new product line. The incentive serves as a reward for the retailer for undertaking this function and helping to promote or sell the manufacturer's product.

A Trade Incentive Involves the Retailer Performing a Function in Order