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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryRetail Media & CommerceTrade Promotion

Retail Media & Commerce

Trade Promotion

Incentives a manufacturer funds with retailers, such as price discounts, displays, or feature ads, to boost sales of its products.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

A trade promotion is an incentive a manufacturer funds with retailers to boost sales of its products. Common forms include temporary price reductions, in-store displays, feature ads in circulars, and volume discounts. Trade promotions are often among a consumer goods company's largest expenses, so measuring their return is a major focus.