Trade research is the collective term used to encompass various research methods needed at various stages of distribution network. Trade research includes wholesale and retail audits, distribution checks and ad hoc studies. Generally, 50 per cent of the expenditure on trade research is evenly divided between distribution checks and ad hoc studies.

Importance

Information from trade research is vital in strategic and tactical decisions. Major uses of trade research have been listed below:
1.    Simple observation of long-term trends provides information for strategic decision-margin

2.    These trends can help management to predict the size of the market, market share of company, competitors and dramatic movements and brands. This in turn helps the marketing management o formulate policies and strategies regarding product planning, branding, packaging, distribution, pricing and promotion.

3.    Trade research helps in profit planning with regard to different brands as the data becomes available through this research.

4.    Trade research data provides information o what has happened in the past and what would happen in the future which helps in tactical decision-making. For example, the management can analyze the promotional expenditure on evaluation only those which are more effective.

5.    The data also helps the marketing managers to avoid obvious future pitfalls. For example, the managers can easily avoid disastrous sales promotion expenditure.

6.    It provides to marketing management a signpost and an eye to visualize competitors’ efforts and their successes and failures.

7.    The marketing management can keep itself informed about the market place in a quantitative, relatively unbiased way month by month and year by year.

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