A functional discount is a payment to a channel member or a buyer for performing marketing functions.

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A functional discount is a type of discount provided to a channel member or a buyer as a payment for performing certain marketing functions, such as promotional or merchandising activities for the product or service. This helps the manufacturer or seller in increasing their sales and improving their market presence. Thus, it can be considered as a form of compensation or incentive for the channel member or buyer to perform their duties effectively.

A Functional Discount Is a Payment to a Channel Member