Definition of Trade marketing
Several definitions:
1.​ Trade marketing is a wider marketing discipline that aims to increase demand with
supply chain partners such as wholesalers, retailers, or at the distributor level, rather
than just at the customer level.
2.​ Trade marketing is the process of organizing, managing and controlling activities in order
to create the ability and achieve the goal of most effective consumption of an
organization's products on the basis of satisfying the needs in the best way of producers,
traders and consumers
3.​ Trade marketing refers to all the sales and marketing initiatives that can be implemented
as part of a collaborative approach between a brand and its distributor. The aim is to
boost in-store sales.
4.​ Trade marketing is a process that entails manufacturers performing promotional
activities to increase the demand for their products among wholesalers and retailers.
5.​ Trade marketing is where the supplier/distributor relationship lies. This is also known as
distribution marketing in B2B sales strategies.
Distributors as a customers and focus on consumers
Definition: Is a marketing process or initiatives or strategy that help company create
relationships with distributors and consumers with the objective of increasing sales in store for
shoppers and demand of distributors (with focus more on distributors)
Differentiate Customer, Consumer and
Shopper
In trade marketing,
-​
-​
Customer are distributors, intermediaries
Shoppers: who buy at POS
The objective of trade marketing is to push buying at Point Of Sale -> two main terms
focus: Customers and Shoppers
When Shoppers are also Consumers, then both Shopper Marketing and Consumers
marketing
Trade marketing: Relationship between Brand and distributors AND Brand and Shopper
Brand marketing: Relationship between Brand and Consumer; raise awareness
Customer marketing: Relationship between Brand and distributors
Shopper marketing: Relationship between Brand and Shopper (with the help of
Customers)
Retail marketing: Relationship between Distributors and Shopper
WHAT IS THE OBJECTIVES OF THESE 5 MARKETING TYPES ?
Type
Objective
From
To
Trade
Marketing
Ensure product availability
in trade channels and
improve retailer
relationships.
Manufacturer/
Brand
Distributor/ Retailer
and Shopper
Brand
Marketing
Build brand awareness and
equity in the minds of
consumers.
Brand
Consumer
Customer
Marketing
Enhance distributor
incentives
Company
Distributors
Shopper
Marketing
Influence purchase
decisions at the point of
sale.
Brand
Shopper
Retail
Marketing
• Engage in store
• Shop in store
Retailer
Shopper
WHEN SHOPPERS ARE ALSO CONSUMERS, THEN BOTH SHOPPER MARKETING AND
CONSUMERS MARKETING (BRAND MARKETING) SHOULD BE DONE OR ONE ONLY
AND WHY ?
WHAT HAPPENS IF ONLY ONE IS DONE IN THIS CASE ?
●​ Should be done at the same time because of different objectives between
Shoppers Marketing and Consumers Marketing
VALUE: ​
Value as to the manufacturer: benefits bring to customer:
-​
-​
"Value is embodied by a series of activities and processes—a value chain—that
provides a certain value for the consumer. It is the totality of the tangible and
intangible product and customer service attributes offered to shoppers;"
"The level of value relates to each firm’s desire for a fair profit and its niche."
Value as to the consumer: what to sacrifice to get the benefits:
-​
-​
-​
Value = Comparison between Perceived benefits and Perceived sacrifices (value,
time, Opportunity)
"Value is the perception a shopper has of a value chain. It is the customer’s view
of all benefits from a purchase (formed by the total retail experience)."
"Value is based on perceived benefits received versus the price paid."
Value = Benefits over sacrifices
-​
Customers sacrifices can include
-​ Money
-​ Transaction costs
-​ Psychic costs
■​ Satisfaction when Value >= Expectation
■​ Dissatisfied: Value < Expectation
Perceived risk in the psychic cost:
Rủi ro cảm nhận là một phần của chi phí về mặt tinh thần (psychic cost)
Types of Perceived Risk (represented by colored circles surrounding the main topic):
●​
●​
●​
●​
●​
Performance: the customer is not fully sure that the product will do what is required
Physical: there maybe some bodily harm done by the product
Financial: there is danger of economic loss from the purchase
Social: customers feel that their social standing or reputation is at risk
Psychological: the customers' self-esteem or self-image is endangered by a purchase
1.4. Customer relationship
Distributor (channel in slide)
Shopper (customer relationship in slide)
●​ Customer base: total customer of a company
●​ Customer service:
●​ Customer satisfaction: Value ….
●​ Loyalty program: loyalty matrix
1.4.2. Customer relationship
Social-relational
rewards
Things such as mailings about special events or the right to use
special waiting areas at airports.
Functional rewards
Things such as access to priority checkout counters or home
delivery.
Economic rewards
Price reductions and purchase vouchers.
Informational rewards
Things such as personalized beauty advice or information on new
goods or services.
Hedonic rewards
Things such as points that can be exchanged for spa services or
participation in games or sweepstakes.
Examples:
●​ Social-relational rewards:​
○​ Mailings about special events: A clothing store sends out personalized
invitations to a VIP shopping night with exclusive discounts and
refreshments.
○​ Right to use special waiting areas at airports: Airline elite status members
get access to comfortable lounges with amenities like free Wi-Fi, snacks,
and drinks.
●​ Functional rewards:​
○​ Access to priority checkout counters: A supermarket offers a dedicated
express lane for loyalty program members, reducing their wait time.
○​ Home delivery: A restaurant provides free delivery for online orders placed
by registered customers.
●​ Economic rewards:​
○​ Price reductions: A bookstore offers a 10% discount to customers who
sign up for their email newsletter.
○​ Purchase vouchers: An online retailer sends a $20 voucher to customers
who spend over $100 on their website.
●​ Informational rewards:​
○​ Personalized beauty advice: A cosmetics brand sends customized product
recommendations and skincare tips based on a customer's skin type and
preferences.
○​ Information on new goods or services: A technology company sends out
early access information about a new product launch to their subscribers.
●​ Hedonic rewards:​
○​ Points that can be exchanged for spa services: A credit card rewards
program allows customers to redeem points for relaxing spa treatments.
○​ Participation in games or sweepstakes: A fast-food chain runs a mobile app
game where customers can win prizes like free meals or gift cards.
Reviews questions
1.​ Differentiate value in the view of shopper/consumer and distributors:
shopper/consumer (Benefits versus scarification) and distributors (benefits)
2.​ Describe loyalty model ?
3.​ Definition of Trade marketing ?
4.​ Describe 3Cs (Company,...) ?
5.​ Name 5 types of rewards category ?
6.​ Differentiate shopper and consumer: shopper (make the decision at POS)
7.​ COMMENT: Retailer need to identify customer based and offer SAME propositional
value: FALSE (NOT all customer are PROFITABLE, therefore only develop base
that bring value to the company)