Trade marketing strategies
What could these managers have been doing with their time if they were managing short-term, tactical, often unprofitable activity? In any change management effort there is a need to accept that if a team is going to start doing something new, then they will need to stop doing something else or do it a lot less, at least! Fortunately in the case of Trade Marketing there is a perfect activity to spend less time on — promotions. But a commitment to do less, to simplify, to reduce the time and money spent in this area is the first step to moving Trade Marketing teams towards a more strategic role.
If Trade Marketers are spending up to 80 percent of their time on these activities, even a small shift would create a lot more time to add more strategic value to the organization. Thanks for taking time to comment! Glad you liked the first part… Second part coming in the next week or two! Thanks — and appreciate you taking the time to comment. All the best and thanks again.
I want to ask a question about customer to you. If you dont mind. What should we do to enlarge our bisnis fmcg in our customer outlet? You can pick it up at Amazon. Hi Mike Tks for the article. Very useful in understanding the evolution of trade and channels.
Hi Terrance, Thanks — glad you liked it and found it useful. Check out this for more on The Role of Trade Marketing. Great thinking here Mike.
I absolutely agree that consumer brands live or die on their ability to distribute smartly and that not enough strategic thought goes into making trade hum. Agree too that promotional tactics have been allowed to dominate supply chain marketing at the expense of best application of end consumer insights.
Look forward to the sequel …. Thanks for taking the time to read and comment. I think there may be a number of sequels! Check it out here. Very well captured Mike. I always had this question in mind.
It would be great if you can share some brand examples suggesting success through change management. Thanks — glad you liked it.
Hi Giancarlo, Thanks for reading and thanks for taking time to comment. There seems a strange situation that most people acknowledge that promotions lose money, take lots of time, and that there are better things to do with that time. Yet — we continue…. I hope things will begin to change: Your email address will not be published.
Skip to content Skip to primary sidebar. Comments great article… look forward to reading the full article on Trade Marketing. Hi Reita, Thanks for taking time to comment! All the best, Mike. Hi Aziz, Thanks — and appreciate you taking the time to comment. The alignment of sales and marketing discipline to profitability can be another explanation for trade marketing. Trade marketing is the basic idea of marketing your products through the value chain and at the point of sale i.
Consider it the idea of creating a demand for your products across the channel and before it reaches the consumer. This traditionally exists in a brick and mortar environment and can be argued to be one of the oldest forms of marketing. The role of these entities is absolutely critical as they help in ensuring that the product is widely distributed and available for the end consumer. The key benefit of these entities is in ensuring that the distribution costs are lower for the manufacturer and simultaneously the products are available for the end consumer.
The distributor and dealers operate on a base trade margin factored in the cost of the product by the manufacturer. The dealer could be a Retailer selling to end consumer directly , wholesaler selling to other retailers primarily or a modern retailer i. Sales outlet means a retailer. A retailer is also one of the customers in trade marketing targets.
Plans of trade marketing is targeting customers and shoppers. Sales outlets customers are a place that manufacturer can meet shoppers and consumers. Basic method of trade marketing is focusing on sales fundamentals, such as Distribution, Display, Promotion and Price.
With data and knowledge of sales fundamentals, trade marketing develops market strategy aligned with brand strategy. In order to deliver sales volume and value, trade marketing support sales forces with well-designed fundamental enhancement plans. Shopkeepers and retailers are becoming more and more profit margin oriented. Shopper marketing may be included in trade marketing, therefore the shopper being another target for trade marketing managers, while it can also be considered as a separate discipline.