Euphemistically referred to as “trade promotion,” paid placements (made in the form of product) by cereal makers and other food purveyors for eye-level shelf positioning, has been practiced for decades. This form of marketing for superior positioning is another example of barter’s use, but has not been identified as such.

Lately, preferential displays or paid placements are appearing on travel sites like Expedia, Travelocity and Orbitz. Yes, coming into vogue are special deals with particular hotels and airlines using trade promotion to have their online offerings listed ahead of competitors. And, thus, making it harder for the Internet purchaser to spot deals.

Trade promotion by consumer goods manufacturers in the U.S. alone now tops $100 billion a year! Food retailers, consumer electronics, and office supply stores have long offered superior product placement in the aisles and on the shelves in their retail establishments across America. With the travel industry now getting into the paid placement business, the $100 billion figure will be even higher!

Barter as a business tool, when looked at realistically and in an expanded view where it’s used in a myriad of places, is an incredibly effective and productive tool!

This entry was posted on Sunday, July 22nd, 2007 at 1:54 pm and is filed under Marketing, Purchasing & Financing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.