Marketers Pressed to Increase Spending on New Trade Promotions

Nobody has ever said it’s easy to get shelf space for your new cereal or laundry soap at the supermarket or discount store. Traditionally, companies have offered trade promotion funds to sweeten the deal. This might include coupons, volume discounts or in-​store marketing materials. These companies also  market their products directly to consumers through traditional and online advertising. Their efforts increase the bottom line and that of the retailer. But is all that about to change?125069_dilemma

According to an Ad Age report, Walmart is now asking marketers to spend consumer-​targeted ad budgets on efforts that promote Walmart as well as the product being sold. Readers commenting on the article point out that many large retailers, not just Walmart, are asking marketers to divert ad budgets in this way. Some readers say that this shift emphasizes the importance of shopper marketing while others say the strategy is likely to help manufacturers as well as retailers. For smaller firms looking to break into the market though, the stakes may be getting a lot higher. Read the article and comments here.

[Neff, Jack. “Walmart Browbeats Marketers,” Ad Age, 7.20.09]
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.