Trade marketing is alive and well if you have ever seen a special product packaging or a product promotion in-store, you will know what it looks like. Trade marketing campaigns are only possible if a CPG has a deep understanding of its customers and the associated customer data.
What is Trade Marketing?
Trade marketing is a B2B strategy that increases consumer demand through distributors, wholesalers and retailers. Any trade marketing campaign aims to sell products and then to other companies, who in turn will sell the products to customers.
A successful trade marketing campaign shows the unique value of a product to all parties - the retailer, the manufacturer and the consumer. Trade marketing is used by consumer goods manufacturers to promote their products in-store, justify product placements, and increase shelf space.
Why is Trade Marketing Important
Trade marketing is essential to generating sustained growth for a product. It is a proven strategy that allows a CPG manufacturer grow its market share in a more competitive marketplace. Trade marketing has been proven to be a reliable method for increasing product distribution. In fact, 90% of tradeshow attendees are actively seeking new products according to a recent survey. Trade marketing is an important tool in your supply chain.
[1] Increasing competition
It's crucial to be different in a crowded CPG market where there is so much product choice. Effective trade marketing programs that highlight the brand's unique value and advantages are a great way for manufacturers to stand out from their competitors. This is something that might not be possible at retail.
[2] Relationship building
Strong relationships can open up opportunities for more business as supply chain partners become more dependent on one another. The relationship becomes more than just a transaction. It can be transformed into a partnership of mutual growth that benefits all parties. A manufacturer's relationship with its supply-chain partners is crucial to its ability to distribute its product.
7 Examples of Trade Marketing
It is essential to understand how, when and why you are running a trade marketing campaign. These are the main trade marketing strategies.
Trade promotions - These promotions target specific partners and can include price reductions, bonus offers, incentives, or other sales-inducing methods. Promotions are a great way to strengthen relationships with your partners and give the market a boost.
Advertising - Advertisements reach large audiences or are targeted to specific audiences to increase awareness about a brand or product. Targeted advertising campaigns that are successful make it easier for distributors, wholesalers and retailers to do their jobs. Customers will be aware of your product.
Branding - A brand highlights the unique advantages and value of a product and addresses a buyer’s identity. It is essential to successfully brand your product as more products are entering the market.
Strategic partnerships - Strategic partnership can help you get your product to market with the support of other businesses. You can benefit from the insights, operations and data of a partner to improve your processes.
Digital marketing - You can direct your marketing efforts to certain groups that make up your most targeted consumer group. Buyers today use digital channels to research purchases. A strong digital content platform can help your company stand out from the rest.
Coupons - Coupons encourage shoppers to try your product and increase sales from existing customers. Digital coupons allow you to create and track your personalized coupons. Digital coupons can be used to generate demand in many ways, including email coupons, retailer-specific coupons and social coupons.
Trade shows - Trade shows put your product on display. Trade shows are a great way for CPGs to launch new products and enter new markets. Trade shows will continue to be a major part of trade marketing.
Three Ways to Create a Perfect Trade Marketing Program
A great trade marketing strategy is more than just a plan. It involves optimization at every level. Using automated data analysis and seamless software integration to optimize trade marketing can help your business reach new heights.
Analytics - Data analysis forms the foundation of growth. Analytics - The more data you have, the easier it is to make informed decisions for your business. TPO analytics give you real-time data and a clear view on your spend so you can change your stance to be proactive.
Integration - To optimize trade promotion management, TPM and TPO solutions must be fully integrated. This allows for a central hub to store all data and information necessary to promote trade effectively.
Profitable Results - Avoid complicating things. This can lead to a flood of low-quality information, poor visibility and complicated decision making. To achieve the desired results, keep everything simple and clear. TPM should be treated with the same complexity and detail-orientation that it demands. TPO software, however, is all about making processes simple and valuable.
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b2b strategy
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goods manufacturers
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Marketing
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trade marketing
trade marketing campaign