In my masters classes, in meetings of friends and even in my house they ask me: What is Trade Marketing? … What exactly do you do? And they ask me so intensely that it’s like they told me … What the fuck is TRADE MARKETING !!! Then let’s go to the universal source of knowledge in these times, Wikipedia … Ok No! But let’s see what it says.

Trade marketing is a branch of marketing or marketing that deals with and is concerned with increasing the demand for the product by the wholesale, retailer, or distributor level rather than at the consumer level.

All this is not without reason, but when in the text indicates that it is done at the level of the distributor refers to that we do it from the Point of Sale or Distribution Channel.

The Trade Marketing consists simply of applying the marketing actions in the Point of Sale, from there we started in 3.2,2 … Go!

Trade Marketing emerged as a response to the massive arrival in the market of products, many of which became a failure and ended up disappearing within a few months. The manufacturers suffered because they invested heavily in the development and commercialization of these products and did not recover, the distributors had problems to achieve a fast turnover and adequate profitability in the Point of Sale.

Then we discovered that the channels acquired more power in the negotiation and the margins were compromised.

#DatoTrade Today, 80% of the Purchase Decisions are taken at the Point of Sale, so the objective of the Trade Marketing is to attract the public to that Point of Sale and manage the ease of access of that public to the product or service that We offer improved margins in the channel.

Trade Marketing is important for two reasons:

  • Close the Circle of Sale, that is, of all the communication you saw in the media, with Trade Marketing you end up convincing and you make the decision to buy that product or service.
  • It creates Long Breath Relations, that is to say, that the channel is affected directly because we will be the first mark positioned in his mind but mainly in his heart, ALWAYS.

The main challenges of Trade Marketing are:

  • Monetize, that the products that are visible in the POS are the most profitable for both the manufacturer and the channel.
  • Long Term Vision, always be attentive to our channel so that the relationship that was created lasts as long as possible and have a proactive action for it.
  • Look after the brand in the POS, take care of our brand, keep it well positioned in the gondola or counter, with a correct pricing, a good assortment, a good offer, ensure that our value proposition is better than the competition. .
  • Identify and develop opportunities, be aware of our channel, its needs and create actions that give value to our product or service.

When we talk about Trade Marketing within the Marketing Mix or the 4Ps of Marketing, we talk mainly about the PLAZA P, and when we talk about square we talk about where our product is located and what is the route that it takes to reach the final consumer, so that We must know the various intermediaries that exist. There may be a direct distribution such as the outlets (from the manufacturer to the final consumer) or with some or some intermediaries such as the markets to finally reach the final consumer.

The Trade Marketing is a very rich area that of a time to this part has taken an important protagonism by the relation that has with diverse areas in the commerce, beyond the already known that are with the manufacturer and the channel, besides we have to The agency and the competition. Trade Marketing has to satisfy diverse needs of actors with different priorities.

The Manufacturer or Company must present solutions and must be immersed in various areas of the same, such as marketing, sales, finance, HR, systems, production, etc.

The Channel or Store should treat it in a special way, make it unique and that should be translated into facts, with special programs that give value to our brand and be the first in your heart.

The Agency must be trained, cared for, it must be known that it is the visible part of the manufacturer, they must be flexible, agile and with quality of service. The feeling of “belonging” can make the difference between doing a good execution and a magnificent execution.

The Competition must know, know who you compete with and who does not, and be able to anticipate their movements in the POS.

Now if you know that Fuck is the Trade Marketing … this is a very broad topic and I am sure that in a second part we can know in more detail this beautiful space of commerce and good relations with our channel.

I leave a sentence to reflect:

“Do not answer where your company wants to sell today, ask yourself how the shopper will buy tomorrow.”

By César Díaz, Consultant in Street Marketing, Specialist in TRADE MARKETING, taken from Hablemos de Marketing.