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Trade Marketing Definition: Everything You Need to Know

11 September 2024

Trade marketing is an essential component of a company's sales strategy, often misunderstood or underestimated. In this article, we will define what trade marketing is, why it is important for companies, and how it differs from other forms of marketing. This article aims to provide you with a clear and comprehensive definition of trade marketing.

What is Trade Marketing?

Trade marketing is a B2B (business-to-business) strategy that focuses on promoting products directly to distributors, wholesalers, and retailers, rather than directly to end consumers. The main objective is to optimize the presence of products at the point of sale and maximize sales through distribution channels.

Trade Marketing Definition

Trade Marketing is the set of actions and strategies implemented by a brand to encourage its business partners (distributors, retailers, etc.) to promote its products. This can include promotions, training, merchandising, special events, and more.

Trade Marketing Goals

The main goals of trade marketing are:

  1. Increase product availability: Ensure that products are well-placed in retail locations and are easily accessible to consumers.

  2. Improve in-store visibility: Use merchandising techniques to make products more visible and appealing to customers.

  3. Build distributor loyalty: Build strong relationships with retail partners to ensure continued brand support.

  4. Optimize promotions: Create special offers and promotions to drive in-store sales.

Trade Marketing Tools

Trade marketing uses a variety of tools to achieve its goals, including:

  • Merchandising: This is the arrangement of products in stores to maximize their visibility and attract customer attention.

  • Point of Purchase Promotions (POP): These promotions include displays, displays, and demonstrations to encourage purchases directly in-store.

  • Loyalty Programs: Offering incentives to distributors to encourage them to promote a particular brand’s products.

  • Training: Educating distributors’ sales teams about the products so that they can better sell them to end customers.

Difference between trade marketing and consumer marketing

It is important to distinguish between trade marketing and consumer marketing. Consumer marketing directly targets end customers using channels such as advertising, social media, and public relations. On the other hand, trade marketing targets distributors and retailers, with the ultimate goal of facilitating sales to end consumers.

Why is trade marketing important?

Trade marketing is essential because it serves as a link between the manufacturer and the end consumer via retailers. A good trade marketing strategy helps to:

  • Improve product distribution: Ensuring that products are available at the right place and at the right time.

  • Strengthen partner relationships: Strong relationships with distributors can lead to better product promotion.

  • Increase market share: By maximizing the effectiveness of in-store sales, trade marketing helps companies increase their market share.

Conclusion

Trade marketing plays a key role in the product distribution chain. By focusing on relationships with distributors and retailers, it allows companies to optimize their in-store presence and boost sales. A clear understanding of the definition of trade marketing and its strategies can therefore greatly contribute to the commercial success of a company.