Broadly speaking there are two major
categories of promotions — consumer promotion and trade promotion. Consumer
promotions offer consumers short-term incentives drawing them into stores to
purchase goods.
Trade promotions on the other hand, help
manufacturers secure their trade partners’ support in procuring, distributing,
promoting and merchandising their products. Their purpose is to push products
down the sales pipeline to the points of purchase.
Trade promotions also help to fuel consumer
promotions as trade incentives are often intended to be passed onto shoppers.