Discuss why companies use B2B and B2C sales promotion tactics and why a company might use both types of sales promotion tactics.

Sales promotion strategies are used in both consumer promotions and trade promotions. Consumer promotions are incentives marketed directly to consumers and potential customers. Consumer promotions are targeted at those who actually use the product, or end users. Businesses that use products and do not resell them are also end users. Consumer promotions help pull products through the distribution channel.

Trade promotion strategies are only allotted for the distribution channel. Trade promotions are expenditures or incentives for channel members to purchase goods for eventual resale. Trade promotions help push products through to retailers and end users.

Sales promotion tactics are used all along the distribution channel, from manufacturer to final consumers. There are many business-to-business (B2B) tactics and business-to-consumer (B2C) tactics.

1. Discuss why companies use B2B and B2C sales promotion tactics and why a company might use both types of sales promotion tactics.

2. How do sales promotion strategies affect movement of goods through the distribution channel?