What is a potential consequence of poorly executed trade promotions?

Poorly executed trade promotions can lead to decreased sales to retailers for several reasons. When trade promotions are not well planned or implemented, retailers may not see the expected benefits, such as increased foot traffic or sales volume. If retailers feel that the promotions are ineffective or do not resonate with their customers, they may be hesitant to participate in future promotions or may even choose to limit their orders for the promoted products. This can create a disconnect between manufacturers and retailers, harming relationships and leading to reduced sales.

Furthermore, inaccurate communication about the promotion, inadequate training for retail staff, or mismanagement of inventory can lead to poor execution. If customers perceive a lack of value or availability during the promotion period, they may be less likely to purchase the product again, ultimately impacting the overall sales performance at the retail level.

While increased product visibility, improved inventory turnover, and higher customer satisfaction are potential benefits of well-executed trade promotions, poorly executed promotions can negate these advantages and lead to unfavorable outcomes for both retailers and consumers.