Defining Trade Marketing would be a good start to this post since many would possibly argue the need for the development of such a department - job post(s) within a competitive organization.
Therefore, Trade Marketing is a clear B2B business approach aiming at satisfying concurrently the end-user with tailor made marketing activities and the Trade as business partners.
This is a rather personalized business activity, a Service-Dominant approach acccording to Vargo and Lusch, (2004, 2008, 2009). A business activity that has as a single goal, to plan and program Distribution Channels and thus key accounts with the same effectiveness and efficiency that an FMCG firm would carry out Brand management.
Trade marketers place a strong emphasis on single customer returns, whereas consumer marketing experts focus on product returns. More specifically, in view of Trade Marketing corporate orientation Trade Marketers would emphasize strongly on annual deals with the Trade regarding bargained position per brand (Stock Keeping Unit) and build marketing intelligence systems with an emphasis on analysis per customer. Literally, Trade marketing gets parallel to Consumer Marketing - A dual, marketing - business approach.
Why would a competitive FMCG firm initiate and implement a Trade Marketing business approach into markets?
For a number of reasons:
A) Distribution Channels tend to concentrate
B) There is a radical development of the Final Customer Purchasing Process and
c) Mass Marketing Strategies have a high operational cost and doubtful results
The need for improvisation and launch of unique tailor made Trade Marketing activities represents a generic, commercial status development, moving from the traditional Key Account Management sales approach to a "sell-in" business approach directed at providing a Relationship Management perspective both to our busines partners - the Trade and the markets.
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