The Tricks of Trade Marketing: 7 Strategies That Work

Trade marketing is one of the oldest yet most misconstrued forms of marketing.

In this blog post, we look at how trade marketing has transformed today and how to use some proven trade marketing strategies to your maximum benefit.

Let us get right into it.

Trade Marketing: Who, What, and Why

Trade marketing is a form of B2B sales marketing strategy that aims to attract retailers, distributors, and wholesale marketers.

The goal of trade marketing strategies is to increase product demand among supply chain managers and other trade partners. It is not direct consumer-focused marketing but ultimately aims to reach the target market.

The target is to get the products on the shelves of shops, supermarkets, and other major distribution centers to maximize product visibility. As demand increases, wholesale manufacturers will be pushed to produce more goods, creating a healthy cycle of supply and demand.

Retailers and suppliers use trade marketing activities like promotional events, product booth displays, giveaways, etc., to promote and exhibit their products. This makes suppliers and consumers aware of the benefits of using their products. In turn, this attracts new distributors and potential buyers and further increases the demand.

In a nutshell, this is how trade marketing works, where manufacturers exhibit their products, increasing demand and thus producing an active cycle of demand-supply.

Who are trade marketers?

Trade marketers are large-scale and small-scale manufacturers who wish to adopt marketing tactics to ‘sell’ their products to retailers, wholesalers, distributors, and supply chain partners.

Manufacturers produce products to sell.

Rather than directly approaching customers, the trade marketing manager markets their product to be eventually sold largescale in markets, shops, and other distribution centers such as malls, thus indirectly reaching the potential customer.

Trade marketing is particularly utilized by retailers with a physical brick-and-mortar shop that needs suppliers and wholesalers to take their products to a broader base of customers.

Essentially, these strategies help manufacturers find the right distributors or retailers who will deliver their product where it needs to be delivered. With effective trade marketing, manufacturers can create a demand for the product they produce and thus increase their market value.

Why Is Trade Marketing Important Today?

Trade marketing came into the relevant marketing scene around the 1990s.

During this period, many wholesale manufacturers saw a gradual shift where the negotiation power lost its charms and distributors were calling all the shots on marketing and trading.

Today, the scenario is slightly different. Wholesale retailers have adopted new methods of promoting their products, ultimately increasing their product value with the power of strategies like targeted marketing campaigns.

Manufacturers are focusing on robust marketing strategies such as cross-promotional events, showcasing their products directly to consumers on trade shows, providing the retailer with samples and scouts, etc., all of which have proved to increase the overall exposure of the products, boost their competitive stand and reach new audience profiles and retail partners.

Fast-moving consumer goods companies have even gone a step further to try out different methods to showcase their competitive advantage. It can be a successful strategy for manufacturers focusing on increasing their product value and market share.

Trade Marketing- A competitive advantage — *Source*

Even through strong strategies, there is a constant struggle for manufacturers to deliver their products to the right supply chain parents and eventually to the open market.

If a manufacturer does not adopt any marketing strategies, the situation becomes even more arduous, the profit and product value take a heavy toll.

Now that we have an understanding of trade marketing and its importance, let us now take a deeper look into the action course.

Trade Marketing vs Conventional Marketing

Trade marketing is slightly different from conventional marketing strategies. In traditional approaches like consumer marketing or shopper marketing, your product is directly marketed to the consumers. In trade marketing, on the other hand, the aim is to market your product to a middleman (usually a retailer or a distributor) who will then sell your product to the general public.

In direct comparison, trade marketing is on a larger scale than most consumer-based marketing approaches.

Trade Marketing-marketing to retailers — *Source*

The similarities lie in marketing your products in a way that distinguishes your goods from competitors and showcases your competitive advantage. Just like consumer-based marketing, right from branding to communication, all aspects of marketing overlap here, except for the target audience.

Akin to consumer marketing and shopper marketing, as a manufacturer, you need to test out which marketing strategy works the best for you and only then adopt it on a larger scale.

In the following section, we have detailed some of the important factors you need to consider before adopting a trade marketing strategy.

3 Elements to Consider in Trade Marketing

There are three main aspects of trade marketing that need to be considered carefully before we get into the trade marketing strategies.

1. Resource allocation

With the advancement in technology today, the biggest challenge faced by marketers across all realms is reaching a wide and dispersed audience.

In large-scale trading, it is becoming increasingly difficult to showcase your products to a wide range of audience pool with ever-changing needs.

As a result of this change, it is important to aptly fragment your marketing resources as a trade marketer. This will ensure that your product is marketed to a larger and more diverse audience.

Don’t put all your eggs in the same basket.

Resource allocation is an important aspect of trade marketing and can make your product reach great market value.

2. Category distribution

Since the 1990s, large-scale manufacturers have adopted a strategy known as category management. In this strategy, multiple products falling under a similar category are grouped together, such as shampoos, body wash, etc., under bath products. The distribution of these grouped product categories is known as category distribution.

By doing so, distributors and manufacturers were able to market a number of products with just one strategy.

Category distribution enables you as a manufacturer or a wholesale seller to market a range of products under one category and not product by product.

Such a generalization of a large number of products also helps ensure that the product stands out and that brand marketing is done right.

To summarize, it is important to categorize your products into different ranges and then market them to your supply chain parents for the best results and distribution.

3. Retail potential

Since most of your products are going to be sold in retail outlets, it is important to know what to expect.

The best growth strategy for wholesalers and manufacturers is to aim to grow sales through retail stores.

Retail outlets are the big ballers for manufacturers and it is important to ensure your marketing strategy addresses these channels apart from your supply chain partners.

Trade marketing enables this but only when you play the marketing card right. With more competition for the wholesaler, it is important to showcase your product ranges in the best light possible.

Acing trade marketing by focusing on retail as well — *Source*

You need to create a rumble to make sure it is your product that sits on the store shelf and not your competitors. Also, there is also the diversity of audience that needs to be noted while marketing your products.

Trade marketing is the way to go and has never been more important to this field.

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7 Proven Trade Marketing Strategies

There are different types of methods that can be used in trade marketing, but there is no straightforward approach.

Some companies focus on reaching shoppers and curating strategies based on them. This will increase consumers’ desire for their products and thus indirectly influence supply chain managers to buy from them.

In contrast, other manufacturers take on the supply chain managers and distributors head-on at trade shows and other promotional events. All year round their focus is on these events and the whole marketing strategy is based on how to tackle competitors and impress the distributors.

As it is evident, both these approaches are entirely different but would work depending upon the product and, of course, the target.

In this section, we share seven important trade marketing strategies that could help you out while devising your own.

1. Create a strong and memorable branding

Marketing works only as long as you are willing to work for it. And branding is a very important part of marketing.

When it comes to your customers, they make a purchasing decision based on your brand and the brand image associated with it.

Strong branding- An important step of trade marketing — *Source*

Similarly, supply chain partners would not sell the product just to make quick bucks out of it. They will be willing to buy products only if it has a steady identity associated and if it is a credible brand.

It is important to ensure your products are always consistent in terms of quality.

In short, smart, steady, and memorable branding is the only way to ensure your products reach the right customers consistently.

2. Invest in strategic partnerships

By investing, we don’t necessarily mean the monetary side of it but rather the connection and time invested.

The aim of marketing is ultimately to create a winning situation for everyone with common goals. This includes wholesalers, manufacturers, and distributors, as well as the customers on the other side of the spectrum.

Team work and partnership- Important to marketing — *Source*

In trade marketing, these working relationships are crucial for a smooth transition of products from factory to stores to the end consumer.

Maintaining a good collaborative relationship on both ends is a must in trade marketing. This relationship could be nurtured in all areas.

For instance, understanding consumer behavior together and working towards helping your products reach the customer is a great way to have a strong relationship.

3. Do your research well

Do you know your product in and out? When it comes to trade marketing knowledge is everything.

Successful businesses have one thing in common — they know their product and target as well as they know themselves.

Data collection and market research on your target enables you to identify pain points and address them immediately. It is equally important to know your core competitors. Have a competitor analysis ready before implementing any action plan.

During this process, ensure you come up with plans in place to address key issues and then move on to the next step.

4. Showcase at events

Do not miss an opportunity to showcase your products either through trade shows or other promotional events. These are some of the best platforms to increase your audience and ensure your brand is well-established.

Trade shows provide the best environment to meet like-minded supply chain managers and retailers and are a great way to get your brand out in the open. You can also distribute marketing material like brochures, flyers, and business cards to your potential business partners.

Trade shows- A boost for your products — *Source*

Events also provide the perfect pitch to forge strong collaborations and working relationships. Brand and product awareness is guaranteed once you make it a point not to miss any trade shows and promotional events.

5. Use promotions and ads to your advantage

Whether it is a consumer or a supplier, everyone loves special treatment. Using promotions and offers to promote your product and boost sales is an excellent way to ensure customers keep coming to you.

Provide special offers and discount codes on a regular basis to encourage customers to choose you over your rivals.

Similarly, running ads that promote your product can also help gain more demand for your brand. Ads are a great way to promote new offers and special discount codes as well.

6. Harness the power of the internet

Using digital trade marketing to your collective advantage can be useful in more than one way.

Though the approach to trade marketing is different, the end goal is the same- to sell your products and increase demand. From Facebook ads to SEO-based marketing and lead generation, even though the target is different, the concept model is more or less the same.

Consider implementing your trade-making strategies online and establish a strong online presence. Take steps to educate your clientele online through educational videos, emails, social media, and direct contact. Keep in touch with your supply chain managers and retailers to ensure you stay on top of their minds.

Digital marketing can be a fool-proof way to ensure your products stay on the shelves.

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7. Make the most of marketing tools

There are a number of marketing tools available that you can leverage to boost brand recognition and product distribution. For instance, digitally, you can use tools such as a string website combined with a good social media presence for your brand or products.

You can use landing pages for lead generation and brand awareness which will help in boosting recognition. Similarly, offline efforts such as posters and physical ads in the form of brochures and banners can be a great way to ensure your brand and product receive the recognition they deserve.

Invest in branded kiosks and stalls when you present your brand at trade shows.

Remember, the product you wish to market will be far more lucrative if portrayed in the right light. Appropriate marketing and branding are crucial to achieve this.

Trade Marketing Examples

Trade marketing isn’t just about getting products on shelves; it’s about building relationships and showing the value of your products. Let us discuss 2 examples of trade marketing in action.

1. Mobile World Congress (MWC)

MWC is one of the biggest trade show events for mobile and telecom innovation. Over 2,400 companies, including major players like Samsung, Sony, OnePlus, and Xiaomi, launch their new smartphones at this event and show off their latest innovations to secure retailers and generate buzz in the market.

MWC is more than just a product launch event. It’s also the gathering of many industry leaders, CEOs, and other experts to deliver keynote addresses and engage in discussions. MWC is THE place where you will get to know about the latest mobile tech, watch product demos, and even interact with them in product booths.

Beyond the big names, you can also explore start-up innovations at MWC. Networking opportunities are limitless at this trade marketing event.

2. Consumer Electronics Show (CES)

The Consumer Electronics Show is another major trade marketing event. This one is for consumer electronics products. it’s the biggest event of it’s kind. Over 4,500 companies including industry giants like LG, Panasonic, and Intel use this trade show to unviiel their new products.

With interesting areas like Eureka Park, where start-ups and tech companies show their cutting-edge products, and a Drone Marketplace that features the newest drone technology and uses, CES is an excellent trade marketing example due to its massive scale and diverse range of products that attract a global audience.

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Wrap Up

Looks like we have covered everything. Hooray! Just a small note before you go:

Remember to choose your marketing strategy wisely 😉

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Content updated for freshness and SEO by Swastik Sahu.