Trade Marketing – Definition, objectives, functions and current applications
Posted: Thu Dec 05, 2024 6:59 am
marketing is in American companies such as Colgate Palmolive, Procter & Gamble and Walmart, which created this term to refer to the integration of the functions of the marketing and sales departments aimed at strengthening relationships with distributors.
This means that the manufacturer sees the distributor as a customer, rather than as a distribution channel, so Trade Marketing would be aimed at satisfying the consumer through the integration of the manufacturer's marketing activities with those of the distributor, jointly considering the needs of market development.
The three most important variables to take into account in trade marketing are: Category management, assortment and promotion.
The greater concentration of distribution in recent decades, the deregulation of the economy, the increase in the weight of the distributor's brand (White Labels), the greater negotiating power of the large chains, the limited space on the shelves, the processes of customer loyalty and the joint processes between producer and distributor, caused the Producers/Manufacturers to seek to balance the direct concessions of margin to the Channel with actions that add value to the brand or improve the bond with the customer.
German Pineiro's BlogTrade Marketing therefore seeks to strengthen the relationship between the Producer and the Distributor, given that at present we can speak of the existence in the market of a battle for space in the Points of Sale just as we can speak, from the point of view of Traditional Marketing, of a battle for space in the mind of the consumer.
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On the other hand, Trade Marketing constitutes the Strategic Link between Marketing and Sales, applying the Marketing approach to the company's Distribution and supporting traditional Marketing to the consumer with Marketing to the Distribution Channel.
Among the main objectives of trade marketing we can highlight:
-Search for a balance between Marketing Channels by geographic area
-Search for new Channels
-Improve turnover at the point of sale
-Boost and accelerate sales by planning and coordinating promotions
-Develop merchandising
-Generate “traffic building” (get the consumer to visit the establishment)
-Achieve brand loyalty with Consumers through the channel
The Trade Marketing professional must make decisions about Distribution, Marketing Mix, Space Management, Trade Promotions, Advertising with Trade, Demographic Analysis by packaging and sizes, Area Test and Category Management, being responsible for the profits and volumes of the business.
Among the main functions of trade marketing, the following stand out:
-Sales estimates
-Product adaptation to consumer and client specifications
-Create plans to achieve brand objectives by distribution sectors
-Develop volume opportunities through consumer-oriented promotions through distribution
-Development of promotions and point-of-sale animation actions
-Assistance in aspects of brand communication with the client
-Evaluation of the profitability of promotional actions
-Management of consumer pricing policies between channels
-Design and management of shelves and points of sale
-Planning of publications in clients' promotional brochures
-Launching new products to clients
-Management of events with clients
-Knowledge of purchasing habits at the point of sale
-Direct marketing to the consumer through distribution channels
-Control of customer additions and by region
Summarizing the above, we can say that Trade Marketing is the Management Process between the participants of the Commercial Distribution Channel to develop and implement plans that allow achieving the market, brand and volume objectives set for mutual benefit and of course for the consumer.
You may also be interested in: WhatsApp Business and WhatsApp personal on the same phone thanks to your virtual number with Rinkel
Bibliography and recommended books:
If you are interested in your studies or your work in trade marketing, I recommend the following bibliography that you can find in your favorite bookstore and also on Amazon. Click on the links if you want to know more details such as the publisher or the price:
Trade Marketing: efficient management between manufacturer and distributor .
Practical guide KAM and Trade Marketing .
Distribution and Trade Marketing .
Trade Marketing, Category Management .
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This means that the manufacturer sees the distributor as a customer, rather than as a distribution channel, so Trade Marketing would be aimed at satisfying the consumer through the integration of the manufacturer's marketing activities with those of the distributor, jointly considering the needs of market development.
The three most important variables to take into account in trade marketing are: Category management, assortment and promotion.
The greater concentration of distribution in recent decades, the deregulation of the economy, the increase in the weight of the distributor's brand (White Labels), the greater negotiating power of the large chains, the limited space on the shelves, the processes of customer loyalty and the joint processes between producer and distributor, caused the Producers/Manufacturers to seek to balance the direct concessions of margin to the Channel with actions that add value to the brand or improve the bond with the customer.
German Pineiro's BlogTrade Marketing therefore seeks to strengthen the relationship between the Producer and the Distributor, given that at present we can speak of the existence in the market of a battle for space in the Points of Sale just as we can speak, from the point of view of Traditional Marketing, of a battle for space in the mind of the consumer.
You may also be interested in: Tips for saving money when purchasing office supplies and stationery for SMEs
On the other hand, Trade Marketing constitutes the Strategic Link between Marketing and Sales, applying the Marketing approach to the company's Distribution and supporting traditional Marketing to the consumer with Marketing to the Distribution Channel.
Among the main objectives of trade marketing we can highlight:
-Search for a balance between Marketing Channels by geographic area
-Search for new Channels
-Improve turnover at the point of sale
-Boost and accelerate sales by planning and coordinating promotions
-Develop merchandising
-Generate “traffic building” (get the consumer to visit the establishment)
-Achieve brand loyalty with Consumers through the channel
The Trade Marketing professional must make decisions about Distribution, Marketing Mix, Space Management, Trade Promotions, Advertising with Trade, Demographic Analysis by packaging and sizes, Area Test and Category Management, being responsible for the profits and volumes of the business.
Among the main functions of trade marketing, the following stand out:
-Sales estimates
-Product adaptation to consumer and client specifications
-Create plans to achieve brand objectives by distribution sectors
-Develop volume opportunities through consumer-oriented promotions through distribution
-Development of promotions and point-of-sale animation actions
-Assistance in aspects of brand communication with the client
-Evaluation of the profitability of promotional actions
-Management of consumer pricing policies between channels
-Design and management of shelves and points of sale
-Planning of publications in clients' promotional brochures
-Launching new products to clients
-Management of events with clients
-Knowledge of purchasing habits at the point of sale
-Direct marketing to the consumer through distribution channels
-Control of customer additions and by region
Summarizing the above, we can say that Trade Marketing is the Management Process between the participants of the Commercial Distribution Channel to develop and implement plans that allow achieving the market, brand and volume objectives set for mutual benefit and of course for the consumer.
You may also be interested in: WhatsApp Business and WhatsApp personal on the same phone thanks to your virtual number with Rinkel
Bibliography and recommended books:
If you are interested in your studies or your work in trade marketing, I recommend the following bibliography that you can find in your favorite bookstore and also on Amazon. Click on the links if you want to know more details such as the publisher or the price:
Trade Marketing: efficient management between manufacturer and distributor .
Practical guide KAM and Trade Marketing .
Distribution and Trade Marketing .
Trade Marketing, Category Management .
Related articles:
Community Manager – Definition, functions, tasks and profile
IV Trade Marketing Forum and Visual Communication Exhibition
Current trends in online marketing
Marketing Definition… Simplifying the Simple
New Kinect applications in the area of Marketing
CategoriesBusiness Management , Marketing
ElBlogDeGerman.Com receives the “Blog of the Day” award
GEANETONDEMAND PRESENTS A NEW PRODUCT FOR ADVERTISING AGENCIES
Blog sections
Present
Blockchain
Cloud Computing
Ecommerce
Companies
Business Manageme cameroon phone data is a secret weapon nt
Gurus and Thinkers
Marketing
Online Marketing
New Technologies
Miscellaneous and Curiosities
Latest published articles
Growth Hacker: Functions, tasks and profile
Complete guide to indexing your website and avoiding penalties for duplicate content
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