AboutLeo Lingham Expertise I can answer questions on marketing, marketing planning,
product management, advertising, sales promotions, sales planning,
merchandising, direct marketing, and sales management.
Experience 18 YEARS WORKING MANAGEMENT EXPERIENCE IN BUSINESS PLANNING,
STRATEGIC PLANNING, MARKETING, SALES MANAGEMENT, AND ORGANIZATION DEVELOPMENT.
PLUS
24 YEARS OF MANAGEMENT CONSULTING IN STRATEGIC PLANNING,
BUSINESS PLANNING, PRODUCT MANAGEMENT, MANAGEMENT TRAINING,
AND BUSINESS COACHING.
Expert: Leo Lingham Date: 6/18/2008 Subject: Diff between Real and Trade Marketing
Question Mr. Leo Lingham
I hope you are in good health
Please tell me in detail what is the difference between the real and trade? what are the important elements comes in both marketing terms?
Please guide me with examples of well known industries
Best regards,
Babar Hussain
Answer BABAR,
HERE IS SOME USEFUL MATERIAL.
REGARDS
LEO LINGHAM
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What is Marketing ?
It is a process by which
-one identifies the needs and wants of the people.
-one determines and creates a product/service to meet the needs
and wants. [PRODUCT]
-one determines a way of taking the product/service to the market
place. [PLACE]
-one determines the way of communicating the product to the
market place. [PROMOTIONS]
-one determines the value for the product.[PRICE].
-one determines the people, who have needs/ wants. [PEOPLE]
and then creating a transaction for exchanging the product for
a value.
and thus creating a satisfaction to the buyer's needs/wants.
TERMS to understand.
1.Product/Service means a product or service or idea to satisfy
the people's needs / wants.
2.Needs mean when a person feels deprived of something.
3.Wants mean when a person's need is formed / shaped
by personality, culture, and knowledge.
4.Value means the benefits that the customer gains from
owning and using the product and the cost of the product.
5.Satisfaction means the extent to which a product's
perceived performance matches a buyer's expectation.
6.Exchange means the act of obtaining a needed/ wanted
object by offering something in return.
7.Transactions mean a trade off between a buyer / a seller
that involves an exchange at agreed conditions.
Marketing is based on identifying, anticipating and satisfying customer needs effectively and profitably.
It encompasses SUBFIELDS like,
*Marketing Concept.
*Importance of Marketing to Strategic Management and the
Organization Success.
* strategic marketing management
*Understanding the Marketing and Competitors.
* marketing research.
*market forecast.
*The importance of knowing Buyer Behavior.
*consumer behavior
*organizational buyer behavior.
*Marketing Strategy
*Strategic market Planning
*Market Development.
*marketing environments
*marketing strategies
* marketing planning.
*TRADE MARKETING MANAGEMENT
*Marketing Plan.
*developing a marketing plan.
*executing/implementing a marketing plan.
*market segmentation
*market targeting.
*market positioning.
*product marketing
*Channel marketing
*New Product Development & Strategy.
*new product development process.
*new product commercialization.
*Product Pricing Considerations and Approaches.
*pricing principles.
*pricing strategy
*Marketing Logistics
*marketing channels.
*physical distribution.
*Marketing Decision Making
*Marketing Mix.
*promotions
*selling
*publicity
*online marketing
*direct marketing.
*marketing communication
*branding
*advertising
*telemarketing
*test marketing
*product planning
*sales development
*sales planning
*sales organization
*trade marketing
*merchandising
*retail marketing
*customer servicing
*SELF SERVICE MARKETING
FROM THE ABOVE, YOU WILL SEE THAT
''TRADE MARKETING '' IS A SUBFIELD OF TOTAL MARKETING.
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TOTAL MARKETING EXAMPLES
1.COCA COLA [USA] MARKETING.
2.UNILEVERS [ UK ] MARKETING
3.PEPSI CO. snacks [ USA] MARKETING
4.GILLETTE BLADES [ USA] MARKETING
5.RECKITT BECKENISER [UK] MARKETING
6.GENERAL MOTORS [USA] MARKETING
7.FORD MOTORS [USA] MARKETING
8. VOLVO CARS [SWEDEN] MARKETING
9.DANONE CONSUMERS [ FRANCE] MARKETING
10.GENERAL FOODS [KRAFT CHEESE] MARKETING.
THESE COMPANIES CONDUCT TOTAL MARKETING
COVERING ALL THE ELEMENTS LISTED IN THE
SUBFIELDS ABOVE.
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WHAT IS TRADE MARKETING
The essence of trade marketing is finding out how the RESELLERS[ wholesaler/ distributors/ retailers ]
thinks and discovering what motivates them. Just like consumer marketing targets the consumer, mapping the consumer's behavior.
It is a element of the marketing mix that relate to building demand at the MIDDLEMEN (wholesaler, retailer, distributor) level. For example, a marketer might offer special display allowances and promotional support to retailers in exchange for additional display space.
Trade marketing is a discipline of marketing that relates to increasing the demand at wholesaler, retailer, or distributor level rather than at the consumer level. However, you need to continue with your Brand Management strategies to sustain the need at the consumer end. A consumer is the one who identifies and purchases a product from a retailer. To ensure that a retailer promotes your product against competitors', you must market your product to the retailers, also. Trade marketing might also include offering various tangible/intangible benefits to retailers
Trade marketing includes a complete spectrum of activities targeted to supporting a company’s sales process. Trade marketing is an all-encompassing, integrated corporate policy, which puts interaction between dealers and customers in the foreground – the objective being to ensure sustainable benefit over competition.
THE TRADE MARKETING SUBFIELDS include,
*retail marketing
*retail advertising
*retail promotions
*wholesaler pricing
*distributor pricing
*retailer pricing
*trade discounts
*payment terms
*trade spending budgeting
*goods return policy
*promotional budgeting
*below the line advertising
*trade shows organization
*trade promotions budgeting
*retail training support
*private labels development
*category management
*point of sale
*retail floor displays
etc etc
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THESE SAME 10 COMPANIES SPEND A LOT OF MONEY
ON THE TRADE MARKETING.
THESE COMPANIES CONDUCT TRADE MARKETING
COVERING ALL THE ELEMENTS LISTED IN THE
SUBFIELDS ABOVE.
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THESE COMPANIES ,
-if they spend 10 mill. dollars on the total marketing,
out of that
-nearly 4 mill. dollars is spent on trade marketing.
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