What are promotional allowances meant to encourage?

Promotional allowances are specifically designed to encourage promotional activities by channel members, such as retailers and distributors. These allowances provide financial support or incentives to these members, allowing them to promote a product more actively. By offering promotional allowances, companies incentivize channel members to engage in various marketing strategies, such as in-store displays, special discounts, or advertising campaigns that can help drive sales and enhance product visibility in the marketplace.

This strategy recognizes the critical role that channel members play in reaching the end consumer and boosts collaborative efforts to increase overall product awareness and sales.