Application and Development of Trade Marketing Strategies - why?

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.

Channel Design Decisions

How do we come to decide upon the right or wrong channeling decision?

Obviously, any marketing activity that we design and implement has no value whatsoever, unless the product is placed on the shelf. In fact, proper channeling reflects on the realization of our entire marketing plan development. Truly, such a decision is critically affected by a number of parameters that have a direct impact upon our selection process;
A) Analysing Consumer Needs. We really need to know what do customers want, what do customers expect out of the channel?
For example, would a customer buy a car from TESCO?
B) Setting Channel Objectives has a strong impact upon our speed in product delivery (e.g. Optimum Stock Turnover Rates), care about the existing and prospective customer (e.g. Exceed optimum customer care levels) and cost measurement. These are three factors that need to be strongly considered by line management. We obviouly want our supply chain management best practices to be our competitive advantage and not a debatable issue.
C) Identifying major alternatives regarding the types and numbers of intermediaries and hence their responsibilities.
D) Evaluation of alternative channeling decisions on the ground that the conusmer has the product available when required at the right price involving the right blend-set of Stock Keeping Units (SKU's).
E) Adaptation of the channeling selection involves economic and control parameters. In many cases it is not what we desire in marketing but what we can afford and how can we eventually control performance effectivenes.

Does the channeling selection decision-making process has a direct impact upon Trade Marketing Strategies best practices?
It is soon to be discussed

Channeling and the effect on Marketing

An introduction to channels of distribution, by Brian K. McCarthy, December 2010