Trade Promotion : Essential to Selling Through Resellers  

Oleh:

Farris, Paul ; Shames, Ervin ; Ailawadi, Kusum L.

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Sloan: Management Review vol. 41 no. 1 (1999), page 83-92.
Topik: trade; trade promotion; selling; resellers

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS27.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

Some industry observers claim that the steady increase in trade promotion expenditures in the packaged goods industry is symptomatic of a shift in power toward retailers and away from manufacturers. As firms sell more goods on deal, managers complain that promotions are eroding the power of brands. More preferable, they say, are "everyday low prices" (EDLP) rather than strategies that involve price discounts and other allowances. Trade promotion is a prime cause of the "bullwhip effect" in channels, and EDLP is perceived as a solution. However, the authors point out that EDLP may cause its own unexpected side effects. Because certain incentives and trade deals may perform important functions, managers must consider the second - and third -order effects of discontinuing them. The same logic applies to channels, so managers must assess how channel members are likely to react to various pricing strategies.

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