What Is "trade Marketing"?

"Trade marketing" is an area of marketing focused on driving demand of distributors and retailers for manufactured goods. Trade marketing includes trade promotions that are tailored toward these larger groups to set products apart from the competition, grow product visibility and create better purchasing rates. Trade marketing is a smaller subset of marketing and is a different field from consumer marketing that relies on customer strategies to drive sales.

Trade marketing takes place between manufacturing companies that make products to sell and the retailers who buy the products and then sell to consumers. Manufacturers produce a wide array of products, but retailers only have so much space to display them. Trade marketing is a way product makers can promote their goods so that they can have a successful business.

This area of marketing is competitive, so trade specialists have many strategies to promote their business. One of these strategies includes trade promotions. Trade promotions include giving incentives to boost retailer repurchase rates and contests that motivate retailers to sell the most of the trader’s product with the winner 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.