A major concern in using trade promotions is that merchandise will not move unless a trade promotion is offered. For example, in the grocery industry, the majority of manufacturers offer some type of trade promotion to get retailers to make purchases.

Question

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This statement is true. The idea behind trade promotions is to offer incentives to retailers or other trade partners to encourage them to carry or promote a product. However, if a product cannot sell without a promotion, it may be an indication that there is an issue with the product's overall value proposition or marketing strategy.

A Major Concern in Using Trade Promotions Is That Merchandise