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Trade marketing

Trade marketing - an effective way to increase sales

What will you learn from the article?

Have you ever wondered what exactly trade marketing is and why it is so important in the business world? We will try to give you an overview of the definition of trade marketing, its key aspects and the most important information that everyone should know.

Trade marketing is a term that may seem complicated, but in fact plays a fundamental role in any company's marketing strategy. Find out why it is worth paying attention to and the benefits it can bring to your business.

Let's start with the basics - what exactly is trade marketing? What are its main objectives and what techniques are most commonly used? We have prepared for you a compilation of the most interesting facts and trivia to help you better understand this field of marketing.

Definition - What is trade marketing?

Trade marketing is an important and effective strategy in advertising, applicable to the goods and services sector. Its objectives are to build and maintain relationships with trading partners, such as retailers or distributors, and to improve the visibility of products at the point of sale and increase their availability and distribution, resulting in increased company profits. In practice, trade marketing is also an important element in the communication between manufacturer and retailer.

Trade marketing - what is worth knowing about it?

As part of trade marketing, manufacturers encourage distributors to promote and appropriately display their products in-store to attract customer attention. As a result, both parties benefit - the manufacturer's profits and visibility increase, while the distributor attracts new customers and also increases sales.

As can be seen in practice, it is trade marketing that influences which products are currently promoted or displayed on the shelves in a given location. A concrete example of trade marketing activities are the classic newspapers with offers, current promotions and recommended products.

On a day-to-day basis, we do not even realise the importance of which shelf a product is placed on. As a rule, those at customer eye level sell better and are not placed there by chance. This is usually the result of a specific agreement between the manufacturer and the shop.

Importantly, trade marketing plays an important role for both big brands and small businesses.

Trade marketing - highlights

Trade marketing focuses primarily on tailor the sales strategy to the specific needs and expectations of customers. In this way, manufacturers can better understand their target group and tailor their offer to their requirements. Let us explain the key tools used in trade marketing.

The first are trade promotions - discounts, prizes or competitions aimed at increasing sales and promoting products to customers. However, it is important to ensure that promotions are in line with the company's long-term strategy and do not in any way disrupt relationships with trading partners.

Another important element is merchandising. Although the name is complicated, in practice it is simply the aforementioned management of the product's place in the point of sale. The appropriate presentation of a given offer (both visually and in terms of organisation) often directly influences purchasing decisions.

The third tool is various types of promotional material, such as leaflets, roll-ups, stands, company stands.

The next important aspect of trade marketing is the strategy of building relationships with trade partners. In practice, commissions, for example, can be helpful to encourage them to promote that particular brand's products.

The main advantage of trade marketing is that it makes it possible to build a competitive advantage in the market and increase brand awareness among consumers in a concrete and measurable way. It also makes it possible to reach an increasingly wide audience. This creates a strong distribution network.

However, for trade marketing to be truly effective, it requires the preparation of a detailed action plan, preceded by a study of the market and the needs of the target group and the distributors themselves. All this is done in order to reach the right audience at the right time with the right offer.

Summary

Trade marketing is an important and effective marketing strategy that, when done well, can significantly increase sales, strengthen brand image and expand the circle of loyal customers. It is also an excellent tool for building relationships with trading partners and responding to audience needs.

Related entries:

Marketing plan, image creation, brand management, marketing planning, image creation, customer acquisition, sales audit, branding activities, creating a company brand, image creation

Do you need help with your business development?

Bartosz Zieliński

Bartosz Zieliński Managing director

+48 665 379 071
[email protected]
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