Business Intelligence and FMCG Glossary: #trademarketing
Trade Marketing
What is Trade Marketing?
With the concentration and specialization of modern distribution the concept of customer marketing or trade marketing has emerged. Its purpose is simply to adapt the value proposition of the marketing mix to a particular distribution channel or retailer.
Trade Marketing considers the needs and specificities of a brand, for example in terms of:
- Product format: we do not sell the same format in a convenience store or hypermarket
- Shelf ready packaging: to facilitate shelving
- Differentiated prices according to the positioning of the distributor
- Adaptation of promotions to the distributor’s strategy
- In-store communication and visibility
- Shopper experience
- Up to exclusive products or brands
This obviously represents a key development of the collaboration between the distributor and the manufacturer that goes far beyond the commercial negotiation in terms of exchange of information such as strategic vision or sell-out data per store. This supplier/retailer strategic alignment lays the foundations for category management the objective of which is a shared management of the mix aimed at meeting customer expectations in a sustainable and cost-effective manner.
