What Is Trade Marketing
and what is it for?

There is often confusion when people talk about what trade marketing is. Even industry professionals and companies sometimes struggle to define it clearly.

This happens because trade marketing encompasses many areas, requiring a wide range of functions and departments for its actions to succeed.

In this article, we will explain what trade marketing is, what it is used for and the advantages of applying this POS-focused set of techniques.

To put things in perspective: according to Nielsen, on average 70% of purchase decisions are made at the POS, with 50% being impulse buys.

It was in this context, as distribution channels became critically important to companies, that trade marketing emerged.

This process is not simple, so let us explore the concept in depth.

1) What is trade marketing?

Trade marketing is a marketing strategy aimed at developing profitable relationships between industries, manufacturers, producers and their sales channels.

In other words, it is an area linked to brand management, promotion and consumer behavior.

Its objective is to maximize revenue and generate more value in the commercialization of products and services through distribution channels.

Trade marketing works as a form of triangulation where consumer preferences serve as a reference for actions involving industry and sales channels.

Before diving deeper, let us look at some key trade marketing concepts:

• POS (Point of Sale): The location where products or services are sold, whether in a physical store or online
• Shopper: The person who is at the point of sale and makes the purchase
• Consumer: The person who actually uses the product or service
• Sales Channels: Where the product or service is presented to the shopper: supermarkets, pharmacies, stores, e-commerce, etc.
• Distribution Channels: The means by which a product reaches the final consumer, either direct or indirect channels
• Shelf Share: The space allocated on the POS shelves for your brand

2) Understanding trade marketing at the POS

Trade marketing plays a crucial role at the point of sale. It is where all the strategic planning comes to life: product placement, promotional actions, shelf organization and brand visibility.

The POS is the battlefield where brands compete for the consumer's attention. And trade marketing is the strategy that determines whether your brand wins or loses that battle.

Effective trade marketing at the POS includes planogram execution, secondary display negotiation, promotional pricing, sampling actions and continuous monitoring of shelf conditions.

3) How to implement trade marketing?

Implementing trade marketing requires a clear strategy, well-trained field teams and reliable data. Here are the key steps:

• Define your channel strategy per retailer
• Set clear KPIs for execution quality
• Train your sales promoters on brand standards
• Invest in technology for field monitoring and reporting
• Review execution data regularly and adjust your approach

4) What are the benefits?

Companies that invest in trade marketing enjoy significant advantages:

• Higher sell-out at the point of sale
• Better brand visibility and shelf presence
• Reduced stockouts and lost sales
• Stronger relationships with retail partners
• More efficient use of marketing budgets

5) PMR: an app for trade marketing team management

Promo MKT Report (PMR) is a field team management platform designed for trade marketing operations. With GPS tracking, geolocated photos and automated same-day reports, managers get complete visibility of field execution, with no monthly fees.

PMR helps you turn field data into actionable insights, ensuring your trade marketing strategy is executed with precision at every point of sale.