Trade Marketing – Definition, objectives, functions and current applications

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asimd17
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Trade Marketing – Definition, objectives, functions and current applications

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According to various sources, the origin of trade marketing is in American companies such as Colgate Palmolive, Procter & Gamble and Walmart, which created this term to refer to the integration of the functions of the marketing and sales departments aimed at strengthening relationships with distributors.

This means that the manufacturer sees the distributor as a customer, rather than as a distribution channel, so Trade Marketing would be aimed at satisfying the consumer through cash app data the integration of the manufacturer's marketing activities with those of the distributor, jointly considering the needs of market development.

The three most important variables to take into account in trade marketing are: Category management, assortment and promotion.

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The greater concentration of distribution in recent decades, the deregulation of the economy, the increase in the weight of the distributor's brand (White Labels), the greater negotiating power of the large chains, the limited space on the shelves, the processes of customer loyalty and the joint processes between producer and distributor, caused the Producers/Manufacturers to seek to balance the direct concessions of margin to the Channel with actions that add value to the brand or improve the bond with the customer.

German Pineiro's BlogTrade Marketing therefore seeks to strengthen the relationship between the Producer and the Distributor, given that at present we can speak of the existence in the market of a battle for space in the Points of Sale just as we can speak, from the point of view of Traditional Marketing, of a battle for space in the mind of the consumer.

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On the other hand, Trade Marketing constitutes the Strategic Link between Marketing and Sales, applying the Marketing approach to the company's Distribution and supporting traditional Marketing to the consumer with Marketing to the Distribution Channel.
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