Trade marketing
Quick answer
Trade marketing brings together a manufacturer's or distributor's actions towards retailers so products are present, visible and sold at the point of sale.
Key takeaways
- Promotions and offers agreed with the retailer (trade promotions)
- Merchandising: placement, number of facings, shelf materials
- Range and planograms by store type
- Commercial terms: rebates, bonuses, listing fees
What trade marketing is
Trade marketing is how a supplier works with the sales channel rather than directly with the consumer: it negotiates shelf space, plans promotions, prepares in-store materials and measures the result. The goal is to grow in-store sales (sell-out), not only shipments to the retailer (sell-in).
What it covers
- Promotions and offers agreed with the retailer (trade promotions)
- Merchandising: placement, number of facings, shelf materials
- Range and planograms by store type
- Commercial terms: rebates, bonuses, listing fees
How it is measured
Promotional uplift = (promo sales − baseline sales) / baseline sales × 100. Promotional ROI = (incremental margin − promotion cost) / promotion cost × 100. Add share of shelf and on-shelf presence (stores where the item is available / stores visited × 100).
Common mistakes
1. Promotions without a baseline. Without baseline sales you cannot tell whether the promotion added anything or only shifted demand from another period.
2. Unchecked execution. An agreement with the retailer does not guarantee that the display or the stock actually exists in the store.
3. Costs outside the budget. Rebates and fees add up and are not linked to results per customer.
How it shows up in a CRM and operations platform
Agent store visits and quotes are recorded in Sales Agent Management, and CRMconnect's BI reporting shows custom KPIs by department. CRMconnect also has a trade promotions calculator that helps estimate the impact.
Real-world example
A snack maker runs a two-week promotion in a retail chain. Baseline sales are 800 units a week; during the promotion 1,400 sell. Uplift = (1,400 − 800) / 800 × 100 = 75%, but only after subtracting the promotion cost is it clear whether it made a profit.
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Frequently asked
What is trade marketing?+
It is the set of actions by a supplier towards retailers and distributors so products are present, visible and attractive in store, with the aim of growing sales to the consumer.
How is trade marketing different from classic marketing?+
Classic marketing addresses the consumer through advertising or brand. Trade marketing works with the channel: shelf, promotions, commercial terms and execution at the point of sale.
How do you measure the effectiveness of a promotion?+
By uplift against baseline sales and by promotional ROI, meaning incremental margin minus promotion cost, divided by cost. What happens after the promotion is also checked.
Who does trade marketing in a company?+
Usually a dedicated team or person, together with sales and field agents who check execution in stores. In small firms the role is split between sales and marketing.
Where CRMconnect fits
Where CRMconnect helps
Sales Agent Management records each agent's calls, visits, quotes and opportunities and aggregates them into reports per agent, team or area.
Related terms
Trade Promotion
A promotional action between supplier and retailer/distributor: discounts, rebates, co-funding aimed at boosting sales.
B2B commerceMerchandising
Merchandising is how products are placed and presented in store so they are easy to find and buy: shelf position, facings, materials and stock.
B2B commercePlanogram
A planogram is the diagram showing where each product goes on the shelf, at which level and in how many facings, so stores present products consistently.
B2B commerceSell-in and sell-out
Sell-in is sales from the manufacturer or distributor to the retailer; sell-out is sales from the retailer to the end consumer, from the shelf or checkout.