COLLABORATION BETWEEN MANUFACTURERS AND RETAIL STORES THROUGH TRADE MARKETING AND SALES PROMOTION ACTIVITIES

Mirjana Nedovic Cabarkapa (), Darija Ivankovic () and Vlasta Sibalic ()
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Mirjana Nedovic Cabarkapa: Podravka d.d.
Darija Ivankovic: Polytechnic "Lavoslav Ruzicka" in Vukovar
Vlasta Sibalic: Financial Agency - Branches Vukovar

Business Logistics in Modern Management, 2012, vol. 12, 159-170

Abstract: This article examines mutual relationship, namely cooperation between manufacturers and trade enterprises when the following issues are discussed: retail price recommended by manufacturer, in-store product positioning, support in activities related to the product improvement, as well as activities related to the trade marketing offered by manufacturer to retail store as its business partner. Fairness in implementation of agreed activities between those enterprises would improve their relationship, and at the same time lead towards more satisfied customer, who would be capable to recognize quality of offered product directly in retail store. The common goal of enterprises (both manufacturers and retail stores) is achieving the highest possible level of customer satisfaction and increase of sales results. The purpose of this article is to elaborate eventual problems which may arise between those subjects, particularly in situation when one of the partners does not respect agreed conditions, which direc ly affect mutual trust. In such a business condition customer could be restricted for benefits of marketing activities, and could therefore choose other products from competition. Through timely control of agreed marketing activities it is possible to influence success of implementation and removal of possible obstacles.

Keywords: manufacturer and retail store; sales promotion activities; trade marketing (search for similar items in EconPapers)
Date: 2012
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