What does the term off invoice trade allowances mean

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Reference no: EM133340253

Case Study Two: Rawlings
Rawlings is an American sports equipment manufacturing company based in Town and Country, Missouri, and founded in 1887. Rawings specializes in baseball equipment and baseball gloves It also manufactures softball, American football, basketball, soccer, and Volleyball balls, footwear and training equipment. You have been hired as brand manager for its Rawlings "Baseball Glove" brand. Your first responsiblity is to expand the demand for Rowling s Baseball Gloves. In order to increase the sales; you have decided to develop reseller support (Trade Promotion) program.

Questions

1. You are planning to use "off-invoice trade allowances as a tool for reseller support. What does the term "off invoice trade allowances" mean? What objectives can be achieved via this type of reseller support program?

2. When developing these programs should the management be concerned about "forward buying" and "diversion". Explain why management should be concerned about these issues.

Reference no: EM133340253

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