Final answer:
Consumer, trade, and business promotions are distinct forms of marketing aimed at different audiences. Consumer promotions encourage purchases through deals for the end user, trade promotions provide incentives to intermediaries to support a brand, and business promotions target B2B relations and lead generation.
Step-by-step explanation:
Consumer promotions, trade promotions, and business promotions are marketing tactics aimed at different audiences to increase sales and brand awareness. Consumer promotions target the end users of a product or service and often include discounts, coupons, sweepstakes, or loyalty programs as tools to encourage purchases. For example, a 20% off coupon on a consumer's next purchase incentivizes them to return to the store.
Trade promotions focus on intermediaries such as retailers or wholesalers. The objective is to motivate the trade to stock more inventory or to prioritize the brand over competitors. Common trade promotion tools are bulk order discounts, trade allowances, and free point-of-sale displays. For instance, offering a retailer an additional 10% discount when they order triple the usual quantity might encourage stocking up.
Business promotions are B2B marketing vehicles that aim to generate leads or close deals. Promotions can include trade shows, business gifts, or corporate discount programs. An example could be an industry convention offering a chance to network with potential business clients and partners.