What is trade marketing?

Question

Justin Parker · Accepted Answer

Trade marketing is a promotional strategy that emphasizes selling services and/or products to other businesses, instead of directly to individual consumers. This is also known as business-to-business (B2B) marketing. Trade marketing involves creating marketing campaigns and promotional offerings that are targeted specifically at:

Retailers
Wholesalers
Other businesses that exist in the distribution chain

Retailers
Wholesalers
Other businesses that exist in the distribution chain

The main goal of trade marketing is to increase brand, product, or service visibility, generate demand among targeted businesses, and increase sales to generate revenue.

The process that is involved in trade marketing typically focuses on creating marketing programs that motivate retailers and wholesalers to promote and sell a certain brand or product. Programs might include a wide variety of advertising and promotional activities, here are some examples:

Signage and point-of-sale displays
Incentives in the form of discounts and rebates for retailers or wholesalers who sell the brand or product
Joint marketing and advertising campaigns, and other co-marketing activities

Many companies rely on trade marketing techniques, but this is especially the case for those that need distribution partners to advertise and sell their products or services. When trade marketing is done effectively it improves B2B relationships with retailers and wholesalers, increasing revenue through high sales, and strengthening market positioning.