• Post author:
  • Post category:MARKETING
  • Post last modified:February 9, 2021
  • Reading time:5 mins read

Trading of goods refers to the process of buying and selling the goods. It takes place in various forms in today’s world. One way is to directly engage in trading with the consumers. The other way is to engage in trading with the final consumers via a chain of distributors. This article proposes an effective model known as trade marketing to demonstrate the process of marketing via a chain of distributors.

Watch the video or continue reading.

Trade marketing refers to increasing of demand for a product at the level of distributors i.e. wholesalers and retailers. It is concerned with generating demand among the chain of distributors rather than the final consumers. An effective model for trade marketing is a must to push the product from the organisation to the distributors. The following model renders a guide to ‘how to do trade marketing’:

effective model for trade marketing

1. Trade marketing meaning with image model

The basic concept of trade marketing involves application of marketing to increase demand at the distributor’s level. It is a form of B2B marketing involving a promotion of goods to other businesses. The answer to ‘how to do trade marketing’ is selling the products to intermediates which in turn sell the products to the final consumers. A manufacturer does trade marketing in order to create demand for the product with the supply chain partners.

 cross promotional technique

2. Promotions and cross promotions 

Promotions under trade marketing can be taken up in two ways. One is using the conventional promotional tools. The other involves using the cross promotional technique. A manufacturer uses trade marketing to increase the demand at the intermediary level. The techniques of promotion and cross promotions are used to convince the chain of distributors to take up the product for further selling.

The conventional promotions can involve offering incentives to the distributors like free samples or simply, a trade allowance. Cross promotions is a cost effective promotional technique. It is a productive way to undertake marketing on a small budget. You can form link ups with other organisations to promote each other’s business in an inexpensive way. Therefore, successful promotion is a must for an effective model for trade marketing. 

 communicate the value of your product to the distributors

3. Emphasize on product value

You should communicate the value of your product to the distributors. Only when they are convinced about your product’s superiority, they will be able to present it effectively in front of the customers. You must emphasize on the better quality of your product as compared to others in the market. Product value plays a significant role in the process of ‘how to do trade marketing’. Therefore, you must focus on effectively presenting your product’s value at the intermediary level.

prerequisite for an effective model for trade marketing

4. Aim at growth of product over future 

You must focus on developing consistency in every aspect of your company’s operations. Your objective must not be restricted to only meeting the present day sales. Rather, you should aim at growing your company over time. A clear mindset with positive future goals is a prerequisite for an effective model for trade marketing. You should establish consistency in your operations to build a brand of good quality.

appropriate chain of intermediaries is necessary for an effective model for trade marketing

5. Pick up the right channel

The channel of distributors must be appropriately chosen. This involves an analysis of the kind of customers you desire for your product. A demographic analysis of the market should be done to shortlist the right customers. You should opt for those distributors which are close to the target customers of your product. Therefore, opting for an appropriate chain of intermediaries is necessary for an effective model for trade marketing.

All the above pointers provide the most useful ways to ‘how to do trade marketing’. An effective model for trade marketing is necessary for successful marketing of trade. You must understand all the above points to develop a tactical approach to trade marketing.


Uni Square Concepts is an advertising agency located in New Delhi, India. By initiating The Uni Square Blog, we aim to provide a comprehensive portal where readers can educate themselves about the various aspects of advertising and marketing. The articles and blogs are written by our professional team of content writers, under the guidance of senior leaders of Uni Square Concepts including its CEO, Uday Sonthalia.