Plus there isn't much shelf space.

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It is clearly better for the manufacturer to sell directly to retailers, but they may not have the luxury of choice, in which case they need to promote their products to all three parties.

Trade marketing strategies are used to create demand for your own products and this is important as retailers, as well as wholesalers and distributors, have millions of products to choose from.


But marketing efforts can pay off. While margins may be very slim, in a perfect sri lanka consumer email list world, everyone in the sales chain will make money, especially if we're talking about products in big supermarkets.

As you might have guessed, the retailer is ultimately in the position of power and everyone knows it.

As such, there is an ongoing battle between manufacturers to get products in front of supply chain partners and if a manufacturer does not use any commercial marketing campaigns, they put their profitability at huge risk…

Trade marketing tactics could be the difference between one retailer choosing one product to sell and another, so it's strange that manufacturing companies often ignore trade marketing or completely misunderstand it.

How did trade marketing become so important?
The concept of trade marketing really became relevant and important in the 1990s.

Previously, a manufacturer had a very strong negotiating position, but during that decade, the balance of power shifted considerably and retailers began to make all the decisions.

Mike Anthony is a retail marketing expert. Something of a pioneer in shopper marketing after a 17-year career in consumer goods, Mike is the CEO of Engage, a company that helps organizations create the vision and strategy needed to drive their marketing and sales efforts. And he was kind enough to reveal some insights into the history of retail marketing.

Trade marketing has been around for over 25 years. The need for trade marketing became more evident when fast moving consumer goods [FMCGs] companies became concerned about several critical business issues.