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Table 1: Definitions of Trade Marketing, Category Management, and Shopper Marketing

This document discusses and compares trade marketing, category management, and shopper marketing. It provides definitions of each from various sources. While the definitions have inconsistencies and overlaps, they commonly imply that these concepts are specific to consumer goods industries due to their two-tier distribution structure. All definitions also consider retailers as key stakeholders and develop marketing activities that benefit retailers directly or indirectly by targeting shoppers.

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Shashank Gupta
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58 views

Table 1: Definitions of Trade Marketing, Category Management, and Shopper Marketing

This document discusses and compares trade marketing, category management, and shopper marketing. It provides definitions of each from various sources. While the definitions have inconsistencies and overlaps, they commonly imply that these concepts are specific to consumer goods industries due to their two-tier distribution structure. All definitions also consider retailers as key stakeholders and develop marketing activities that benefit retailers directly or indirectly by targeting shoppers.

Uploaded by

Shashank Gupta
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Introduction 2

category management cause conceptual confusion. The latest trend to implement shopper
marketing adds to the confusion (Desforges and Anthony 2013; Flint, Hoyt, and Swift 2014).
Some authors see shopper marketing as the further development of trade marketing and
category management (Frey, Hunstiger, and Dräger 2011; GS1 Germany 2013; Harris 2010).
Others argue that shopper marketing is different to trade marketing and category management
(Flint, Hoyt, and Swift 2014; Hoyt 2010). Desforges and Anthony (2013, pp. 23–24), for
example, argue as follows: “The introduction of Category Management and trade marketing
were evolutionary; they attempted to augment the existing way of doing business rather than
addressing the fundamental issues within the environment. Neither of these approaches has
been truly successful.”

Table 1: Definitions of trade marketing, category management, and shopper


marketing
Trade marketing Category management Shopper marketing

• “Trade marketing is industrial • “Thus, category management is • “Shopper marketing is the planning
marketing ‒ business-to-business seen as a joint process of retailers and execution of all marketing
marketing. (…) In essence, trade and suppliers to manage categories activities that influence a shopper
marketing is a balancing act as strategic business units, in order along, and beyond, the entire path-
involving three issues. First, to produce enhanced business to-purchase‒from the point at which
maximising the value offered to results by focusing on delivering the motivation to shop first emerges
retailers. (...) Second, ensuring the increased consumer value.” (Dupre through to purchase, consumption,
profitability of individual accounts. and Gruen 2004, p. 445) repurchase, and recommendation
(...) Third, since the client base is • “The strategic management of (Shankar 2011). Shopper marketing
much more concentrated in product groups through trade is primarily aimed at creating a win-
industrial markets, the danger of partnerships, which aims to win-win solution for the shopper-
dependence is much more maximize sales and profits by retailer-manufacturer triad.”
dramatic.” (Corstjens and Corstjens satisfying consumer and shopper (Shankar and Yadav 2011, pp. 1–2)
1999, p. 222) – updated by Thain needs.” (Institute of Grocery • “In our view, shopper marketing for
and Bradley (2012) Distribution 10 May 2014) manufacturers is all about targeting.
• “As a process to integrate sales and • “Category management, in its It is understanding how one’s core
marketing objectives and strategies, definition and its deployment, is target consumers behave as
trade marketing is designed to described as strategic trade shoppers in different channels,
ensure that the retailer’s needs (e.g. marketing (…); it represents an formats and retailers and using this
in promotional terms) communicated attempt by supplying companies to intelligence to develop shopper-
internally by sales personnel are co-develop category strategies with based strategies and initiatives that
met by the brand marketing mix co- their retailer customers (…).” will grow the business (brands,
ordinated by marketing (Cespedes, (Dewsnap and Jobber 2004b, p. 7) categories and departments) in
1993).” (Dewsnap and Jobber 2009, ways that benefit all stakeholders ‒
p. 989) brands, consumers, key retailers
and the mutual shopper.” (Hoyt
2010, pp. 136–137)

Besides the inconsistencies and overlaps, the definitions have three major commonalities.
First, they imply that trade marketing, category management, and shopper marketing are
idiosyncratic to the consumer goods industry (Geylani, Dukes, and Srinivasan 2007). The
necessity for trade marketing, category management, and shopper marketing results from the
“two-tier distribution structure” of the consumer goods industry (Swoboda et al. 2012, p.
729). Second, all definitions consider the retailer as a key stakeholder. Third, in all definitions
trade marketing, category management, and shopper marketing develop marketing activities
that either benefit retailers directly or indirectly by targeting its customers, the shoppers.

All key authors acknowledge that trade marketing, category management, and shopper
marketing is an interrelated organizational topic (Flint, Hoyt, and Swift 2014; GS1 Germany

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