Trade Advertising - Meaning & Definition

Published by MBA Skool Team, Last Updated: March 18, 2015

What is Trade Advertising?

This kind of advertising is carried out by a producer which is directed towards the wholesaler, traders and distributors rather than the end consumers of the product. This kind of advertising is strategically important for firms so that they can establish good relations with the trader, wholesaler or the distributors associated with the selling of the company’s products. It is also known as business to business advertising.

The advantages of carrying out trade advertising is that it is low in cost and can provide a good means to communicate the message to the target audience. Also, it helps command a respect for the product the company launches as it is intended for specific audience. The chances of meeting a new supplier increases when we adopt to trade advertising. As the advertising is done in specific trade journals and media, the chances are high that a new supplier may get enticed with the product and contact the company for its rights. One of the major advantages of trade advertising is that it creates an image in trader’s mind which eventually makes him/her to approach the company to sell its product.

In some cases, like in the pharmaceutical industries distributors have a good command over the distribution channel. In such cases carrying out trade advertising may benefit the company as its products would reach a greater number of people. Also, in case of FMCG goods there is a huge competition to acquire the best distributor in the region so that the goods are available to the customers when required. Trade advertising helps to gain an important distributor in the region.


Hence, this concludes the definition of Trade Advertising along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

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