Trade Marketing

Table 1 - Trade marketing vs. Brand marketing

Trade marketing and brand marketing may be different marketing approaches; however, companies can use these two in tandem to achieve their marketing and sales objectives. A company can employ brand marketing to develop the brand image and communicate it to the customers. It will help in promoting the brand to the target audience. Once it can establish a strong brand identity in the market, it can employ trade marketing to create demand for its products amongst the supply chain partners.

Fig. 1 - Market research is one of the pillars of trade marketing

Tools of Trade Marketing

Businesses use different tools to implement the trade marketing strategy effectively. Let's discuss some of the common tools of trade marketing.

• Customer relationship management (CRM) – Customer relationship management is an approach a business uses to manage relations with customers. It helps keep track of customers' activities and improves communication with them. It gathers data through customer interaction and allows businesses to measure productivity.

• Email system – It is another tool of trade marketing. A business needs to communicate with its partners regularly. Therefore, it is vital to have an email system that ensures effective communication. The partners need to be updated about company plans and policies. The email system is equally important for communication with customers.

• Brand story – Branding is integral to trade marketing, and every established brand has a story to tell. It inspires people to connect with the brand at a deeper level. As for trade partners, the brand story helps convince them about a brand's potential.

Trade Marketing Examples

A business could employ different ways to execute trade marketing campaigns. To understand these concepts fully, let's go through some typical trade marketing examples.

Trade exhibitions

A trade exhibition is a perfect opportunity for a business to showcase its products. It could create a buzz for the products when done correctly. Businesses can draw attention not just from potential customers but also from potential trade partners. It provides an ideal setting to grow the business network and build fruitful relationships.

Fig. 2 - The trade exhibition is a vital part of trade marketing

Trade promotions

As the name suggests, trade promotions are used to promote the trade of products. At first, a manufacturer can incentivize its partners, who then pass it on to the customers. Vendors give free samples and discounts to customers to promote the products.

Strategic partnerships

When two or more brands collaborate to achieve their marketing goals, it is called a strategic partnership. These brands use each other's customer base to enhance their value proposition. In trade marketing, the manufacturer signs an agreement with wholesalers and retailers to form strategic partnerships.