A trade association, also known as an industry trade group, business association, or sector association, is an organization founded and funded by businesses that operate in a specific industry . An industry trade association participates in public relations activities such as advertising, education, political donations, lobbying, and publishing, but its main focus is collaboration between companies, or standardization. Associations may offer other services, such as organizing conferences, networking or charitable events or offering classes or educational materials. Many associations are non-profit organizations governed by bylaws and directed by officers who are also members.
Trade Associations
The Association of Master Upholsterers is an example of a trade association.
One of the primary purposes of trade groups, particularly in the United States, is to attempt to influence public policy in a direction favorable to the group's members. This can take the form of contributions to the campaigns of political candidates and parties, contributions to "issue" campaigns not tied to a candidate or party, and lobbying legislators to support or oppose particular legislation. In addition, trade groups attempt to influence the activities of regulatory bodies.
Almost all trade associations are heavily involved in publishing activities, whether in print or online. The main media published by trade associations are as follows:
- Association website - The association's website typically explains its aims and objectives, promotes the association's products and services, explains the benefits of membership to prospective members, and promotes members' businesses.
- Members newsletters or magazines - Whether produced in print or online, association newsletters and magazines contain news about the activities of the association, industry news and editorial features on topical issues. Some are exclusively distributed to members, while others are used to lobby lawmakers and regulators, and some are used to promote members' businesses to potential new customers.
- Printed membership directories and yearbooks - Larger trade associations publish membership directories and yearbooks to promote their association to opinion formers, lawmakers, regulators and other stakeholders. Such publications also help to promote members' businesses both to each other and to a wider audience. A typical membership directory contains profiles of each association member, a products and services guide, advertising from members, and editorial articles about the aims, objectives, and activities of the association. The emphasis of association yearbooks on the other hand is on editorial features about the association itself and the association's industry.
The opportunity to be promoted in such media (whether by editorial or advertising) is often an important reason why companies join a trade association in the first place.
Industry trade groups sometimes produce advertisements, just as normal corporations do. However, whereas typical advertisements are for a specific product, industry trade groups advertisements generally are targeted to promote the views of an entire industry.