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Trade ROI (Return on Investment)
Definition
A measure of the financial return generated from trade promotion investments, comparing the incremental profit or revenue driven by a promotion to the cost of the trade spend.
How It's Calculated
Incremental profit ÷ Trade spend
Example
A promotion generates $50,000 in incremental revenue from $25,000 in trade spend, resulting in a Trade ROI of 2.0, meaning $2 returned for every $1 invested.
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