For example, how effective do you think handing out flyers would be for trade marketers when compared to a comprehensive online content marketing campaign? The short answer is there can be no comparison. While content marketing is currently experiencing a surge in popularity, it hasn't been fully embraced by trade marketers.
Considering the effectiveness of some old-school marketing tactics, content marketing is an excellent opportunity. And then, of course, there is the constant need for manufacturers to add value. Aside from purely marketing to your supply chain partners, you need to add tangible or intangible value. That can be done through shopper research, providing planograms that seek to increase a categories overall performance , retail analytics and more. While trade marketing is largely about increasing demand from your supply chain partners, which is B2B in nature, it also comes with the necessity to ensure that demand from consumers themselves is also maintained.
What use would it be if you get many purchase orders from a retailer but then the retailer struggles to sell the product afterwards? Such a situation would result in once-off purchase orders rather than repeat business. To prevent that from happening, manufacturers need to provide adequate support to ensure that their products are displayed, promoted and marketed to consumers properly.
It can come in any shape or form so long as it helps to sustain the demand for products at the consumer level. That goes for anything in life and business, including anything related to the retail industry. Your trade marketing efforts, for example, will mean nothing if either of your B2B or B2C is misaligned or lacking.
That is because your supply chain partners want to know that there is demand for your products at consumer level before committing. Firstly, you need to communicate the demand that is currently at consumer level. If you fail to do that, then imagine this situation: What would happen if you failed to follow through on your promise?
The result is an immediate break down in that relationship. In fact, it could be difficult to repair the relationship if what you promised is so far from what was delivered. Trade marketing is particularly interesting because it entails both B2B and B2C marketing. If you are looking for ways to improve demand at the shopper level B2C , data-driven planograms are one way to do this.
They also add value to retailers, wholesalers and distributors. If this is interesting for you then you might be interested in our FREE Category Management Collaboration Guide , which explains how suppliers and retailers can work together to drive category growth. To ensure that a retailer promotes a company's product against competitors', that company must market its product to the retailers as well.
The alignment of sales and marketing discipline to profitability can be another explanation for trade marketing. Trade marketing is the basic idea of marketing your products through the value chain and at the point of sale i. Consider it the idea of creating a demand for your products across the channel and before it reaches the consumer.
This traditionally exists in a brick and mortar environment and can be argued to be one of the oldest forms of marketing. The role of these entities is absolutely critical as they help in ensuring that the product is widely distributed and available for the end consumer.
The key benefit of these entities is in ensuring that the distribution costs are lower for the manufacturer and simultaneously the products are available for the end consumer. The distributor and dealers operate on a base trade margin factored in the cost of the product by the manufacturer. The dealer could be a Retailer selling to end consumer directly , wholesaler selling to other retailers primarily or a modern retailer i.
Sales outlet means a retailer. A retailer is also one of the customers in trade marketing targets. Plans of trade marketing is targeting customers and shoppers. Sales outlets customers are a place that manufacturer can meet shoppers and consumers. Basic method of trade marketing is focusing on sales fundamentals, such as Distribution, Display, Promotion and Price. With data and knowledge of sales fundamentals, trade marketing develops market strategy aligned with brand strategy.
In order to deliver sales volume and value, trade marketing support sales forces with well-designed fundamental enhancement plans.
Shopkeepers and retailers are becoming more and more profit margin oriented.