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Trade Promotion
Definition
A marketing tactic in which a CPG manufacturer provides incentives to retailers—such as temporary price reductions, discounts, displays, or allowances—to encourage product stocking, visibility, and increased sales.
How It's Calculated
Example
A snack brand offers a temporary price reduction and funds an endcap display at a major grocery chain to support a new product launch, increasing visibility and driving higher unit sales during the promotion period.
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