Manufacturers use trade promotions to encourage retailers to purchase their products. The main types of trade promotions are trade allowances, trade incentives, trade shows and trade competitions. Each type of promotion offers manufacturers a unique opportunity to drive sales. For example, trade discounts offer retailers discounts on their invoices. According to Clow & Baack (2014), “Approximately 35% of all business dollars are spent on off-invoice allocations” (p. 341). Trade allowances also include spotting fees and exit fees. This is a fee that the manufacturer pays to the retailer to stock a product or remove a product from the shelves. It is assumed that retailers will pass these discounts on to consumers. Unfortunately, this is not always the case. Channel members may run sales competitions in which participants win money or prizes to encourage sales. Commercial incentives involve cooperative merchandising agreements (CMA), premiums and bonus packs, and/or cooperative advertising. Finally, manufacturers can showcase their products in person at trade shows. This place offers the customer the opportunity to compare products and the manufacturer can stand out from the competition. This is also a great time for manufacturers and suppliers to network. Trade Promotions for Hot FireFirst of all, here is some general information about this trade program. Terry Walsh is the producer and owner of Hot Fire Fuel Injection Cleaner and has requested assistance in producing a trade promotions program. Fuel injection cleaners are poured into the gas tank when refueling the vehicle (Mester, 2013, para. 1). Terry's Fuel Injection Cleaner is a high performance product that is safe for both foreign and domestic vehicles...... middle of paper ...... should be priced at $50,000 to include advertising in specialized magazines. The following ad was created for placement in trade magazines and retailer sales flyers. Flyers could also be produced from the ad and placed at the counters of local auto stores, as well as incorporated into a brochure or newsletter. Works Cited Clow, K. & Baack, D. (2014). Integrated advertising, promotion and marketing communications. (6th ed.) Upper Saddle River, NJ: PearsonMester, B. (2013). Cleaning fuel injectors – injector cleaner. Retrieved from: http://benjimester.hubpages.com/hub/Fuel-Injection-Cleaner-Fuel-Injector-Cleaner Warren, S. (nd) Hot road marketing. [PDF Document] Retrieved from: https://csuglobal.blackboard.com/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_111176_1%26url%3D