Thursday, August 7, 2014

The difference: Trade Marketing, Customer Marketing & Shopper Marketing

Hi FMCGers,

When I started writing this blog I started 3 subjects and stopped in the middle as they were some usage of Trade Marketing terms & Trade Marketing sub-functions, then I noticed it can be a good opportunity to share what are the classification of Trade Marketing for myself and the reader to stand on the same platform for future discussions.  

This is classification is not a text book guideline it is just my humble understanding and data collecting put on my words. 

As I mentioned earlier, most companies until now are considering the Trade Marketing as concept not as a function and they place trade marketing functions separately between different departments; mainly marketing and direct sales. 
In the last blog we shared the definition of Trade Marketing and where the companies place this function within it is structure (Link to the post: What is Trade Marketing), this time we will go through the Trade Marketing different sub-functions and how these sub-functions as a whole form the term "Trade Marketing".

The Trade marketing functions are:
  • Customer Marketing
  • Shopper Marketing 
These two functions have very different application and approaches, it is even to the extend that in some companies these two functions are placed in two separate department (an option I am not in favor of, however each company has it is own nature and needs, also, the trade marketing concept is not developed enough specially in Saudi Arabia to be a unique department by itself).

To share the main difference between the two functions I needs too many pages, but I tried my best to have a quick summary table below that highlight the key differences.



The table give a general idea about the main deference and the below are just example of each function:

Customer Marketing:


Goody Kitchen initiative with Panda is an example of a customer marketing initiative, it is a customer based initiative, the objective was to grow the joint partnership with Panda across Goody brands and products, note that from supplier/brand point usually customer marketing initiatives are aiming to grow the customer), again customer marketing is customer based initiative


Shopper Marketing:

RedBull example of having brand related initiative where the communication is based on the brand and the customer is just a platform, the same displays can be placed with totally different customers; as the base here is the brand and the shopper not the customer, also, the displays aim to attract the shopper section shopper to RedBull ignoring the other brands. 

Finally, if each customer marketing and shopper marketing are placed in the right department supported by the right process and objective understanding, the companies will be able to be more efficient in their efforts and budgets, also, the impact in-store will be superior.

Kindly share with us in the comments below if you have any customer marketing or shopper marketing experiences, enquires or feedback, every contribution or article sharing is much appreciated. 

Hasan Bashammakh
FMCGers





2 comments:

  1. It helped me to understand more about trade marketing

    ReplyDelete
  2. Continue to my comment>> excellent article y36eek al3afiya :-)

    ReplyDelete