Trade Spend Strategy: Your Untapped ROI Opportunity
There are 2 general approaches to trade spending strategy:
- The Offensive Expectation: trade dollars should be positioned as performance-based and value-generating mechanics. These are complex to manage, monitor and audit. With this approach, build out a resource model to support and ensure you can accomplish your goals without spending your benefits on administration.
- The Defensive Expectation: trade dollars are focused on avoidance [not opportunity] and will be earned mostly on purchases alone. In this approach, simplification of the process structure is recommended in order to minimize an administrative investment.
When an executive team engages in the definition and execution of the trade spend and pricing strategy, there's a return on investment that outweighs the majority of competing activities by a factor of 10x or more.