Trade Marketing: 4 Trade Marketing Strategies

Trade marketing is a type of B2B marketing (short for business-to-business marketing) that focuses on establishing strong relationships with supply chain partners. Unlike shopper marketing, which appeals to end consumers, trade marketing strategies target other businesses in the supply chain, including retailers, distributors, and wholesalers.

Manufacturers of consumer products, such as fast-moving consumer goods (FMCG) or durables companies, rely on supply chain partners to sell their products. In a typical supply chain, the manufacturer will ship their products to a distributor, who sells them to a wholesaler, who in turn sells them to a retailer, who finally sells them to the end consumer. In a saturated market with many manufacturers for similar consumer goods and limited shelf space at the point of sale (POS), distributors, wholesalers, and retailers have many products to choose from. To compete, manufacturers concerned with their bottom line must develop strong relationships at every level of the supply chain.

To get these businesses to carry their products, manufacturers use trade marketing activities to establish relationships and highlight the benefits of buying from them. Trade marketing is particularly important for CPG (consumer packaged goods) manufacturers who rely on the supply chain and can significantly impact their sales goals, return on investment, and profit margins. Trade marketing can help you increase your value proposition by differentiating your company from the competition.

Companies using trade marketing strategies will often employ a trade marketing manager who oversees a marketing team. This trade marketing team is responsible for creating a marketing plan and brand strategy specifically targeting other businesses in the supply chain. Effective trade marketing campaigns help to both differentiate your product to shoppers and create strong, mutually-beneficial relationships with partnering businesses.

Even though trade marketers do not operate at the consumer level, they’re still competing for shelf space. To effectively influence purchase decisions and build brand awareness, trade marketers must rely on a number of tools to appeal to potential B2B partners successfully.

1. 1. Digital marketing: Digital marketing allows you to apply market research to reach your target market with specificity. Digital channels, such as social media platforms, email marketing, and digital advertisements can be combined with traditional personalized marketing tools such as phone calls and face-to-face meetings with prospective buyers.
2. 2. Content marketing: Creating a strong brand that end consumers recognize is crucial in convincing a wholesaler, distributor, or retailer to carry your product. Through paid ads, organic content, and social media marketing, companies can create brand awareness, appeal to their target audience, and develop customer loyalty, which in turn increases the likelihood of building long-term relationships with supply chain partners.
3. 3. Trade shows: Trade shows are industry events where companies from across the supply chain (as well as interested end-consumers) come together to learn about new products and forge business relationships. Trade shows offer a unique opportunity for companies to present demos, visuals, and product samples that demonstrate the unique selling proposition (USP) of their products, as well as get responses from prospective business partners and new customers in real-time.
4. 4. Special offers: Trade marketers often offer trade promotions and incentives, such as discounts or bonuses, to supply chain partners in order to motivate retailers, wholesalers, and distributors to carry and promote their products.

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