Trade Marketing Flashcards

Trade Marketing: Key Concepts

Trade Marketing Definition

• Trade Marketing (TM) focuses on the BUYER/shopper, distinct from marketing (consumer) and sales (customer/client).
• Aims to coordinate and align all departments, acting as a growth engine in the channel/retailer/point of sale.
• TM involves landing marketing strategies (4P's) into the retail environment (POS).

Importance of Trade Marketing

• Distributors are key to reaching customers, especially in FMCG.
• Manufacturers depend on retailers, necessitating collaboration.
• Collaboration involves manufacturers understanding retailer differences and retailers recognizing manufacturers as category experts.
• Goal: Boost demand, achieve efficiency, and fulfill shopper needs.

Trade Marketing vs. Traditional Marketing & Sales

• Marketing: Focuses on consumers.
• Sales: Focuses on customers/clients.
• Trade Marketing: Focuses on buyers/shoppers, influencing purchasing decisions at the point of sale.
• About 70% of purchasing decisions are made at the point of sale, and 68% are unplanned.

Trade Marketing Objectives

• Coordinate and develop trade marketing plans by channel.
• Ensure correct implementation of company strategy, fitting retailer needs.
• Define segmentation, target, positioning, price policy, image, assortments, and promotional activities.
• Manage categories.

Evolution of Sales and Marketing Departments:

1900-1960

• Hierarchical system (army).
• Limited decision-making for marketers.

1960-1970

• Marketing expands, developing functional areas (distribution, sales, advertising).
• Emergence of the "four P's".

1980s

• Customer satisfaction and relationships become essential.
• Distributors become important for manufacturers.
• Trade Marketing appears, along with Key Account Managers.

1990s

• Reduced hierarchical levels; quicker market response.
• Integration and collaboration between customers and suppliers.

2000s

• Focus on micromarketing and personalized relationships.
• Commercial organizations prioritize customer strategy.
• Emphasis on the "three R's": Recruit, Retain, Recover customers.

Trade Marketing Apparition

• First appears from 1980 to 1990 in U.S.A and Europe.

Why Trade Marketing Appears

• Sales concentration.
• The Marketing Mix of each channel has a distorting screen or lens effect between consumer demand and supplier.

Key Elements of Modern Organizational Structure:

• Define working roles for efficient execution.
• Establish collaboration to integrate activities.
• Focus on ROI, analysis, and feedback, while preparing for constant change.

Trade Marketing Roles and Responsibilities:

• Support commercial management.
• Develop trade policy.
• Manage assortment and pricing policies.
• Oversee POS management and sales activation.
• Analyze information and sales force communications.

Objectives of Trade Marketing Department:

• Identify growth opportunities.
• Support KAM and Sales Team.
• Improve marketing/sales interaction.
• Reinforce customer marketing orientation.

Trade Marketing Team Placement:

• The trade marketing team has to be within the organizational chart close to comercial direction and Marketing.

Trade Marketing Summarizing

• Vertical strategic and operational alliance: Processes, technologies, information exchange, commitment →partnering

Trade Marketing Director - Responsibilities

• Coordinate and develop marketing strategies in commerce to achieve the business objectives.
• Develop, implementation and monitoring of all programs designed to improve 4P strategies.
• Working closely with the global team to ensure that global strategies are in line with local executions

Trade Marketing Director - Requirements

• 4-5 years of FMCG experience in Trade Marketing and Key Account Management.
• Knowledge of trade marketing concepts and best practices.
• Very good communication and relationship skills. Focused on results.