What is trade marketing?
Trade marketing is a sub-branch of marketing that emerged in the 1990s. Created in response to a new paradigm in modern industrial production, it consists in developing the sale of products aimed mainly at supermarkets and large stores specialising in sport through a win-win approach.
To do this, trade marketing is a B2B (Business To Business) approach, born out of joint work between the producers and the distributors of manufactured goods. The aim of trade marketing is to identify the common ground between a product range and its distributor in order to create promotional events and marketing strategies that make consumers want to buy. Trade marketing is not only about sales, however: it also covers logistics, product development, merchandising, research and IT. All the information that retailers and producers can share makes it possible to align their respective needs and find common ground in order to develop the best price choice in stores.
Indeed, these two players do not always share the same objectives: the distributor seeks to adapt as closely as possible to demand while the producer seeks to create demand by diversifying. Trade marketing is therefore there to make it possible to pursue both objectives by pooling a certain amount of expertise.
Here are some of the benefits of trade marketing:
- Savings across the production chain
- Stable commercial relationships
- Fewer commercial disputes
- Better forecasting
- Higher sales
- Fewer stock shortages
The secret of trade marketing is therefore to correctly identify your trade partners as well as the sales target, to develop a marketing approach shared by both brands, and to set financial targets that benefit producers and distributors alike, to see off the competition and ultimately to build customer loyalty.
What does a trade marketing manager do?
The main role of a trade marketing officer is to ensure a good relationship between producers and the distribution network. This understanding is what makes it possible to put in place a shared strategy that is both effective and profitable.
They will then need to roll out a wide range of promotional campaigns in line with the strategic policy of the stores. They will be at the heart of designing and implementing these campaigns, from marketing through to in-store displays.
Remember that promotions do not take place only in store; they can happen online, be sent by post, take place near a railway station, and so on. The trade marketing manager must therefore be able to adapt to different media and new technologies, as well as to changing consumer habits, in particular delivery and online shopping.
They must therefore organise promotional activities such as prize draws, seasonal campaigns, communication plans and sales while calculating their cost and their effectiveness over time in order to negotiate more successfully with the major retailers. They must of course find products that match particular themes and targeted demand in order to ensure that production runs in the best possible conditions.
The trade marketing manager must also keep a close watch on new trends in promotion, on customer demand (expectations, fashions, desires, and so on) and on the strategies of other players. They must be curious, particularly about new ways of doing marketing. They must also come up with original techniques to attract customers.
Showcasing products is their number 1 objective; to do so, they always keep a close eye on competitors' methods and international markets.
They are the coordinator of the final promotional project. To succeed, they work alongside many other professionals (communication agencies, graphic designers, logistics support, department managers, brand marketers, and so on). They need to understand how logistics work in store and what equipment is available (display stands, posters, banners, discount vouchers, and so on).
Once the campaign is over, they must review the promotion with both their agency's marketing manager and the distributor who commissioned it. This allows them to draw lessons from the various campaigns in order to make them ever more effective and profitable for the companies involved. To this end, they may also work with consumer associations to gain a broader picture.
What qualities and skills does a trade marketing manager need?
- Organisation and rigour
- Communication and transparency
- Creativity and innovation
- Dual sales and marketing expertise
Salary, career opportunities and progression
A trade marketing manager can expect to earn around €2,500 gross per month at junior level, and €4,500 gross per month as an experienced professional. Bonuses may be earned for particularly profitable campaigns carried out during their contract. However, these are not necessarily included in the salary.
With enough experience, this professional can go on to become marketing director or marketing officer for a brand, a group or a company. A trade marketing manager can easily move into almost any marketing role or into a position in sales management.
Which programme should you take to become a trade marketing manager?
As this is a skilled role that carries responsibility, it is advisable to study at a business school and to hold at least a three-year degree (bac +3). For example, you can take a bachelor's degree in marketing or communication, strategic marketing or business. However, it is often preferable to go on to a master's in marketing, or to take a master's or an MBA to maximise your chances of finding a job.
To specialise in the sports sector, it is advisable to gain additional knowledge through programmes such as a Master's in Sport Business.
