Like any other business, you need to promote your product in order for it to be successful. It’s also important that you mix up your strategy with trade sale promotions so that one type of marketing doesn’t get stale.
Trade Sales Promotions are the key to driving sales, building market share, and increasing customer loyalty. It typically involves the use of tools such as promotional products, trade show displays, and more.
65% of companies identified in-person tradeshows as an invaluable part of their marketing strategy.
This article will get you up to speed on the basics of trade sales promotion and talk about how they can be used to elevate sales.
What is Trade Promotion?
Trade promotion is any marketing activity that a company conducts with the purpose of increasing sales of its products or services. Specifically, Trade promotions are used by brands to create a lasting buzz around their product or service. This type of marketing is also referred to as “trade spending.”
Performing trade sales promotion can be an effective way for companies to increase sales in the short term, as it requires minimal advertising costs and often delivers immediate sales.
95% of exhibitors prefer in-person events over virtual ones despite the growth of virtual events due to Covid-19.
Such promotions range from simple in-store displays (for example, point-of-sale advertising material) to more complex and expensive campaigns. They are most effective when targeted at key retail partners, who then promote the product or service to their customers on-site, through social media, and in emails.
5 Types of B2B Trade Promotions and How They Can Help You
In the business-to-business (B2B) marketing industry, trade promotions help you to encourage business customers to buy a certain product or service. These kinds of promotions are commonly used by B2B marketers when selling their products to other businesses and organizations, who then sell the product to consumers.
1. In-store displays
One of the most common trade sales promotion types is In-store displays. Choosing this one to amp up sales is obvious-it connects on a personal level with your potential customers. In-store displays are a very effective way to promote a product by making it visible and accessible for customers to purchase. They come in many different shapes and sizes, but the most popular is the free-standing display.
2. Sales contests
Sales contests effectively increase consumer interest in your products and get them more engaged with your company. They can be done in-store or online, and they incentivize customers to buy more of your product than they originally planned or purchase products that they might not have considered before.
Retailers often use this type of trade sales promotion to increase the number of buyers and generate more revenue.
3. Deals and discounts
Deal and discounts are a great way to make people buy your product or service, especially if they hesitate to decide. This type of promotion is eye-grabbing in nature when the customer has not yet made up their mind about buying your product or service.
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These are typically the most popular type of trade sales promotion because they increase product value quickly and easily.
4. Rebates
Rebates are another popular but less common type of B2B trade sales promotion that offers customers money back for their purchases after they have been made, rather than before they have been made as with bundles.
Rebates can be in the form of discounts, credits, coupons, or gifts. This option is most suitable for companies looking to increase their sales.
5. Bundles
A bundle is when a company offers products or services at a discounted price. It is often done in the form of a package deal. The bundle can be for one product or service or multiple products and services. Bundles are a good option for companies with multiple products and are a great way to provide more value for your customer. It can be as simple as bundling two products together or as complicated as bundling an entire set of products with one another.
This type of trade sales promotion will usually increase sales because customers feel like they are getting more for their money. And that is precisely the motto of this one!
The Benefits of Implementing Trade Promotion Activities
Trade promotions are a marketing activity that companies use to increase their brand awareness and consumer engagement. It is done by providing discounts, free samples, or other incentives.
There are many advantages to trade sales promotion, but one of the most important is that they can help generate new customers. In-person events or face-to-face marketing helps win more business growth.
Almost, 71% of SMEs (small and medium-sized enterprises) were successful to scale business through face-to-face networking.
If a customer likes a product or service, they may be more inclined to purchase it again in the future if they get a discounted price on their first purchase. The specific advantages of trade promotions include the following:
- Quickly Improve Your Order To Cash Cycle
Trade promotions can significantly benefit an organization’s ability to speed up order-to-cash cycles. In addition, these are the most effective means through which organizations can build their brand and expand customer reach. Why? Because trade promotions get your product or service in front of more people and generate more sales.
Trade promotions are the perfect tool to reduce the time it takes for your company’s money cycle (order-to-cash). It is possible because it helps generate more revenue for your business which can then be put back into the business to help with cash flow issues.
- Significant Rise in Order Size
It is impossible to think of a business that has never used promotional activities or trade promotions. Trade promotions are considered one of the best ways to promote and increase sales. The activities are quite popular with several companies, who consider it their primary tool for growing their business or increasing the demand for their product.
Trade promotions can help you generate more revenue by increasing your order size. They can help you get more customers by increasing your customer base and even international market access. Finally, they can provide you with a competitive advantage over other companies in your industry because it makes you stand out from the crowd.
- Impressively Boost Your Profitability
Trade promotions are a very effective strategy for sustainable business growth. Trade promotions provide companies with an opportunity to reach out to customers, gather feedback, and improve efficiencies.
In the present market scenario, it is observed that companies are more interested in increasing sales rather than profits. The constant drive to reduce costs has meant that businesses have had to become more efficient in running their operations. With the need to increase profits and decrease expenses, trade promotion planning is critical for any business’s marketing mix.
In such a situation, trade promotion can be the only advantageous option for business owners to increase their profit and revenue if they want to focus on this aspect intact.
- A Strong And Lasting Relationship With Your Customers
Trade promotion is a marketing technique that uses product samples to attract customers. Businesses can use trade promotions in various ways, including providing samples at the point of sale, setting up booths at conventions, and sending sample packages to target consumers.
Thus, Trade promotions are an excellent way to reach out to your customers and strengthen your relationships with them. It is a powerful form of marketing that can help your potential customers stay connected with your brand, even in the off-season for sales.
What are the Best Tools to Aid in Trade Sales Promotions?
There are a number of tools that can help your business run more efficiently when it comes to trade sales promotions. Trade promotion optimization software can help you map out your promotion plan and allocate your budget more effectively. Trade promotion management software can help you track your promotions and analyze the results. Both of these tools can help you make your promotions more successful and save you time and money.
1. Trade Promotion Optimization Software
When it comes to trade promotions, efficiency is key. The more efficiently you can plan and execute your promotions, the more successful they will be. That’s where trade promotion optimization software comes into the picture.
Such software tools enable you to optimize your promotions by helping you to plan, manage and track them more effectively. It can help you to identify opportunities and optimize your strategies to ensure that you are getting the most out of your promotions. Moreover, such tools help companies to find the best promotional items for trade promotions and create a promotional calendar based on the target audience.
With the help of trade promotion optimization software, you can streamline your trade promotion process and make sure that your promotions are as successful as possible.
2. Trade Promotion Management Software
Trade promotion management software is a tool that helps in the coordination of trade promotions like planning, executing, and measuring the results of their trade promotions. It helps an organization execute trade promotions with the help of a database that stores all promotional items, their pricing, and all promotional activities.
This type of software can automate many of the tasks associated with trade promotions, such as creating and managing promotion calendars, communicating with retailers (by sending out digital business cards), and tracking spending and results. It can also help you analyze the performance of your promotions and make better decisions about which ones to run in the future. If you’re looking to run more efficient and effective trade promotions, then trade promotion management software is definitely a tool worth considering.
Wrapping Up!
No matter the size of your company, there are many benefits to be had by investing in trade promotion tools. Promoting your product is a significant aspect of marketing, and you need to be sure that whatever it is you’re using can achieve its purpose. That’s where Trade sales promotion plays a crucial role in driving business growth for both brands and enterprises.
Many different tools are available to help you plan, manage, and optimize your trade sales promotions. We’ve already two of the most important ones above. Whether it’s to increase brand awareness or drive traffic to stores, the right software can ensure you get the most out of your marketing budget.
