Abstract
In the current distribution process, retailers and manufacturers have to work together. This relationship has often been conflictive, but now is the time for collaboration. Indeed, looking at the different fields where suppliers and retailers have to work together, we can easily understand the role of Trade Marketing. This paper highlights the central place of Trade Marketing in FMCG companies. Though it's called Trade Marketing or not, we will see that these practices are imperative for any FMCG company because of their dependency on retailers.
In theory, Trade Marketing is defined as a methodical procedure carried out jointly by suppliers and retailers, whose objective is to better serve customers' needs and expectations, increase profitability and competitive position, while taking into account each other's constraints and specificity. In practice, if FMCG companies use Trade Marketing, it's often to better control their products. Indeed, consumers do not buy the product directly from the manufacturer, but via wholesalers, distributors, and retailers. So, besides communicating with the consumer directly, the manufacturer must also ensure that all intermediates are positioning and promoting their products favorably. Between Sales and Consumer Marketing department, Trade Marketers have to be a link between these two entities, to have a higher impact on the relationship with retailers.
While the Consumer Marketing department manages the brand, and builds the communication based on the shoppers' insights, Trade Marketers develop channel strategies to reduce costs, and increase purchases. They select the channel that best suits each operation, and design commercial arguments, Point-Of-Purchase (POP) vision, and displays. Based on the Trade Marketing action plan, the Sales department negotiates with the retailers, to implement and monitor the operation, which is aimed to generate a higher purchase volume.
