CHAPTER 1

Trade Structure and Route to Market

Retail outlets and sales channels

The retail outlets of every market can be grouped into sales channels that are supplied and serviced by a multiplicity of trade accounts: retailers, distributors, and wholesalers. A sales channel is a cluster of retail outlets with similar selling proposition, physical characteristics, and target shoppers. The first challenge for a newly appointed sales leader is to choose the combination of sales channels and trade accounts where she will sell her company’s brands—in other words, to select the path to reach out to her target shoppers, her route to market (RTM).

The identification and selection of sales channels is the first step to take in the definition of a RTM. ...

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