What is Trade Marketing? Definition for dummies

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Trade Marketing is a concept that is little known by the general public and even among companies. In this post we explain what Trade Marketing is and other interesting things about this type of marketing.

What is Trade Marketing?
A large company like Coca Cola sells its products to consumers indirectly. That is, they do el salvador phone number list have specific stores dedicated to selling Coca Cola, but rather they sell them to supermarkets, bars, restaurants... in short, to retailers who are responsible for marketing Coca Cola to end consumers.

Therefore, Coca Cola's marketing is not only focused on the general public, but also has to be directed at retailers and distributors. This type of marketing is known as Trade Marketing.

A formal definition of Trade Marketing is an area of ​​marketing that focuses on driving demand from distributors and retailers for manufactured goods. Trade marketing takes place between manufacturing companies that make products to sell and retailers who buy those products and then sell them to consumers. Manufacturers can produce a wide range of products, but retailers have limited space to display them, hence competition exists between manufacturers and they turn to trade marketing to promote their products.

How is Trade Marketing done?
Trade Marketing has been with us for over 25 years. Initially conceived as a function that would organise bespoke promotions for large retail clients, it became increasingly important in the 1990s.

The essence of trade marketing is knowing how the retailer thinks and discovering what motivates it. Trade promotions implemented include granting incentives to increase retailer repurchase rates and contests that motivate retailers to sell the most of the company's product with the winning retailer receiving a prize. No matter what the specific strategy, trade marketers set short- and long-term goals for their business in order to outperform their competitors.

For example, a vendor may offer special display benefits and promotional support to retailers in exchange for additional space.

Today, almost all major manufacturers have a trade marketing function in their business.