[MUSIC] Welcome. Today we're going to describe how trade marketing has changed the organizational structure. The emergence of trade marketing implied some modification in the structure of the marketing and sales departments, bringing conflict sometimes. Organizationally speaking, there are two main figures that appear. The account key manager, or the key account manager on the manufacturer side and the category manager on the trade or distributor side. The biggest conflicts appear on how marketing and sales budgets began to be allocated in a different way. And regarding where we allocate these figures in the organization, it differs a lot among the companies. There is not a unique solution. So we start to talk about what a key account manager is. It is the person in charge of a large client on the manufacturer's side, and what are the man objectives? Of course, maximize sales and the wallet share within each client. We want this client to buy as much as possible from us. We also want to increase loyalty from the customer perspective. And we serve all the Key Account Manager is usually the advocate of the client inside the manufacturer. This person also wants to increase their knowledge about the client from the manufacturer's viewpoint, and even the knowledge about a certain industry. And finally he or she acts as a facilitator to make easy the communication process between the manufacturers and the client. The other figure that we were talking about is the category manager. And he's the counterpart of the key account manager, but from the distributor's viewpoint. It is the person in charge of managing the brand and all the references or stock keeping units of a certain product category. And what are the main objectives? In this case they differ. It has to develop a strategic plan for a certain product line. Define and take care of the information and technology that is required to support the process and manage the relationship with all the manufacturers within the category. Finally, define and manage the internal organization at the distributor level. And these changes in the structure has also consequence about the marketing. It's not the same, the consumer, as the trade marketing. And the main differences, I am going to highlight them. If we talk for example about objectives, in trade marketing we are trying to detect and satisfy the trade needs, whereas in the consumer we're thinking about the consumer needs. If we talk about the promotional plan, in trade marketing we are targeting the client per channel, whereas in the consumer marketing we are talking about consumers per brand. If we think about communication tools. In trade marketing of course they are professional B2B tools, whereas in the consumer one it's more the mass market ones. And finally we'll talk about market research. We are talking about consumer habits in the consumer marketing versus purchasing habits in the trade one. So today you have seen that we have covered that trade marketing implies changes in the organizational structure in order to obtain the goals. See you in the next class, where we will learn about the most important trade marketing collaboration activities which is the efficient consumer response and the category management. [MUSIC]