Sales promotions are an effective way to pull a product through a channel, while trade promotions are used to push a product.

Question

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Sales promotions are used to encourage consumers to purchase a product by offering a temporary incentive, such as discounts or coupons. This pulls the product through the channel by increasing demand from consumers. On the other hand, trade promotions are incentives offered to retailers or wholesalers to promote or push a product. These incentives may include trade discounts, allowances, or co-operative advertising.

Sales Promotions Are an Effective Way to Pull a Product