Trade Marketing refers to the activities that are done to market the products to the various supply chain partners like distributors, wholesalers and retailers. The word ‘Marketing’ in the usual sense connotes to the efforts made to convince the end consumer to buy a particular product/ service. But ‘Trade Marketing’ attempts to convince the intermediaries in the supply chain who exist in between the manufacturer and the end consumer. It is sometimes also called as B2B (business to business) marketing.
Trade Marketing assumes significance for a manufacturer because it will help in ensuring supply & availability of the product to meet the demand of the consumer. By doing so, a retailer will also help in promoting the product by giving prominent display, giving more shelf space, through word of mouth etc. In case of products which have ‘low involvement purchase’ (like match box, tissue papers etc), sales is directly related to the availability of the product. Here the manufacturer needs to give various sops to the retailer like discount, margins based on volumes and other benefits.
Besides product display & promotion at retailer level, Trade Marketing also helps in having a strong distribution network through the supply chain.
Hence, this concludes the definition of Trade Marketing 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.
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