Trade Marketing Fundamentals

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The Fundamentals of Trade Marketing

Trade marketing is a form of business-to-business (B2B) marketing, in which companies attempt to market and sell their products to wholesalers, distributors, or retailers, rather than directly to consumers. Profitable trade marketing is contingent on a number of factors, from an awareness of retailer and consumer needs to the ability to formulate innovative and modern sales techniques. What follows are some of the fundamentals of trade marketing practices.

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Trade Marketing Fundamentals

  1. 1. Trade Marketing FundamentalsThe Fundamentals of TradeMarketingTrade marketing is a form of business-to-business (B2B) marketing, in whichcompanies attempt to market and sell theirproducts to wholesalers, distributors, orretailers, rather than directly to consumers.Profitable trade marketing is contingent ona number of factors, from an awareness of retailer and consumer needs tothe ability to formulate innovative and modern sales techniques. Whatfollows are some of the fundamentals of trade marketing practices.Benefits of Trade MarketingManufacturers can benefit from marketing their products to other majorretailers or distributors in a number of ways. First of all, when successful,the process guarantees that a manufacturer will be able to get its producton store shelves. More importantly, the process ensures that themanufacturer or marketer will have a retailer’s full support in helping topromote and advertise the product. In other words, trade marketingessentially increases the sales team behind a particular product, since boththe retailer and the marketer want a product to sell.Necessity of ResearchOne of the most basic fundamentals of trade marketing is the necessity ofmarket research, which is conducted at several levels. First, marketingspecialists must conduct research into a variety of different retailers tolocate the best company or companies to which they can sell theirproducts. Once that relationship has been established, both marketer andretailer will work together to research the best promotional tactics for theproduct. Should it be placed at the checkout to encourage point of salepurchases? Should it be featured in a window display? Is it a product that
  2. 2. needs to be marketed online, through various social media marketingstrategies? Research is integral to answering these questions.Methods of Research: Primary SourcesTrade marketers and their retail partners generally take one of two maintactics when conducting product or market research. Some use primarysources, such as interviews and surveys, to determine consumer wantsand retailer needs. While this is one of the most popular ways of gatheringmarket research data, in the past this was also an incredibly time-consuming tactic. With the popularity of the internet, however, and theability to conduct surveys and compile information via e-mail or websitelinks, this method has become efficient.Methods of Research: Secondary SourcesAnother method used by trade marketers to gather information aboutclients and consumers is to compile secondary sources, such as pre-calculated trade statistics. This is information that has already beentabulated by major national or international market research companiessuch as Nielsen, and published in trade industry journals and databasessuch as Business America. This information can give a broad picture of themarket trends surrounding a particular product, serving as a starting pointfor trade or B2B marketing strategies; however, the information is not aswell-tailored to a specific business or product as that gathered from primarysources.Basic Strategies: Trade Shows and TechnologyMarketers should be ready to present their products or services at tradeshows - one of the foremost ways to advertise for trade marketing - butthey should also be willing and able to contact retailers before the tradeshow, and be ready to follow up afterwards. Creating an online presence isone of the best ways to do this. According to research conducted byVanessa Fox, a former PR representative for Google and author ofMarketing in the Age of Google, the top three targets for trade marketerstoday are actually websites, e-mail, and social media marketing outlets. To
  3. 3. keep up with the competition, marketers will need to utilize this technologyfor their benefit.Overall, the fundamentals of trade marketing include copious marketresearch, an ability to create an online presence, and a well-maintainedpersonal relationship with retailers, distributors, or wholesalers. Marketersshould frequently analyze industry trends, and keep apprised of consumerdesires as well as those of their clients. To see this and other related articles on how to better advertise, monitor, and protect your business visit http://spreadcast.net. We can help you improve your search rankings, increase your website traffic, monitor and manage your reputation, and manage your online leads for you.

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