The process of setting a budget for trade marketing can be very difficult and complicated. You need to carefully evaluate potential supply chain partners and your competitors’ strategies, and according make a move before time runs out. There is a lot of speculation involved, so you may need to ramp up or cut back spending at the right times. If you have set a dollar figure that you are comfortable spending for trade marketing, remember that it is just one part of the budgeting process. You still need to see where and how you spend those dollars. Here is a look at some tips to build and allocate budget resources for your trade marketing strategy. 

 

1. Ask the right questions and focus on the important factors in trade marketing

The right amount for your annual budget depends on a number of factors. Before you set this amount, ask the following questions: How well-known is your company in your specific industry/niche? What industry is your company part of and how much do your competitors spend for trade marketing? How much can you afford to spend on trade marketing?



If you are not that well-established and lack a proper supply chain structure to begin with, focus on investing as much as you can on trade marketing for the next few years. As your supply chain strengthens, you can drop down your budget. If you have a fairly high profit margin, you can afford to spend some more to keep your company growing.

3. Do not forget about related expenses

Marketing does not just involve advertising your products to supply chain customers, but also related expenses like trade show displays, market research, sales team training, and so on. You may also need to hire outside experts to help you strategize better. You should account for a little extra in case these unexpected expenses come up.

4. Allocate resources smartly

Once you have an annual budget set for your trade marketing strategy, it is time to allocate these resources on the right trade marketing channels. Direct mail, print, and trade show booths are some channels available to you, but you also have to allocate resources to meet high-value customers directly. You also have to allocate resources to reach customers with the most potential first and then move on to customers with less potential.

5. Track your records

No matter how much you allocate for your trade marketing budget, you have to follow your marketing performance closely. Be vigilant of how much time, money, and effort it costs to get each supply chain customer. Assess your sales team’s performance regularly and record their results meticulously. It helps you make a better trade marketing plan and budget the next time.