Trade Marketing Mix

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Description of Trade Marketing Mix. Explanation.




Example of MerchandisingDefinition Trade Marketing Mix. Description.

At the end of the Supply Chain, it is normally the End Consumer who is ultimately buying the products (or services). This is why manufacturers of products and services spend a lot of time, effort and money to influence the consumer to choose their product or service via various consumer Marketing Methods and Approaches, including the Marketing Mix.

However, observe that consumers are normally NOT buying the products or services directly from these manufacturers, but via or from wholesalers, distributors and retailers. So besides communicating (advertising) towards the consumer directly, manufacturers must also ensure that any intermediates (wholesalers, distributors and retailers) are positioning and promoting their products and services favorably. Both absolutely and compared to their competitors.

This way of marketing is called Trade Marketing. Using trade marketing, manufacturers aim to achieve a favorable Competitive Position at wholesalers, distributors and retailers.

The Trade Marketing Mix are those elements of the Marketing Mix that relate to increasing the demand at wholesaler, distributor and retailer level rather then at the end-user level.

Typical examples of such elements are: Trade Advertising (for example a Pepsi-Cola advertisement placed in some trade magazine, in order to promote Pepsi to retail managers), trade incentive programs, personal selling, wholesale pricing, payment options, return services, special display allowances, promotional support and Merchandising (product promotion that is carried out in the point of purchase).

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Compare with: Marketing Mix  |  7 Ps  |  Vendor Managed Inventory  |  Multi Channel Marketing

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