Trade Marketing is a marketing strategy focused on strategically positioning goods at points of sale. Developing a high-quality product at a competitive price is undeniably a positive factor in expanding industry sales.
However, more than one product with these characteristics is needed to guarantee that the sales results obtained will be within, who knows, above expectations.
The industry also needs an engaged team of great employees who put well-structured strategies into practice based on market studies.
In this context, structuring trade marketing actions is essential for the industry to obtain outstanding results.
In this article, we will show how technology is an essential tool and can be a powerful ally to increase the efficiency of trade marketing results.
We will also highlight how IT solutions can significantly help this process. Check out!
What Is Trade Marketing?
After all, what is trade marketing? When a consumer decides to buy a product, a series of factors influence this purchase process: his relationship with the product brand, the space occupied by the effect on the shelves, pricing, etc.
The relationship between the industry and its distribution channels also influence the purchasing decision of these consumers.
Considering these and other elements present in optimizing product sales and distribution channels is where the trade marketing professional comes in.
The trade marketing manager will ensure strategic planning for the consumer, considering factors such as product distribution planning, relationship with distribution channels and merchandising management at the POS.
The concept of trade marketing refers to the practice adopted by the industry to analyze consumer behavior and enhance marketing and sales strategies.
3 Benefits Of Trade Marketing
One of the main benefits of trade marketing is that it is a strategy that brings results over an unlimited period.
Thus, the company will be able to experience constant improvement in its business relationships, in addition to better acceptance of the brand in the market.
More reach for new consumers Trade marketing allows you to reach new consumer markets more assertively. This is because your business can reach highly segmented retail markets with the use of technology and data.
More Market Presence For The Product
When you market your product using traditional marketing, you end up selling your products only to local retailers. With practical trade actions, you will reach more consumers who otherwise might not get to know your product.
Increased Competitive Advantage
Trade marketing increases your competitive advantage over competitors precisely because it increases your visibility.
For example, it is possible to provide more subsidies for the sale, such as advertising and marketing material to be displayed at points of sale or delivered to consumers.
4 Essential Trade Marketing Tools
As we already know, trade marketing is vital in increasing sell-out numbers. However, when creating strategies, the area manager needs to consider some tools and define which ones are being adopted, which are most appropriate and which errors need to be corrected.
Knowing these tools will ensure that the manager maintains control of the process and knows how to build and improve his trade marketing strategies and sales.
Among some of the core tools, we can highlight:
Training Of Sales And Promotion Teams
An essential tool in the management and training of teams of promoters and salespeople. Thus, by taking care of your team’s training, you can ensure that they know precisely how to act following the industry’s strategy in the face of negotiations with distribution and retail channels.
Monitoring internal and agent stocks in this sales chain is a powerful tool to refine your marketing strategy and campaigns, as the real-time analysis of the market reaction to your movements, promotions, and incentives is a powerful management tool.
Knowing the channels your product is going through is essential to create a solid trade marketing strategy.
Therefore, survey your channels with all the relevant information that allows better analysis and categorization.
That way, you can build a profile of your channels, find out which one sells the most, and thus know where to direct your resources and strategies.
Regency, Frequency And Value (RFV)
The regency, frequency and value numbers analysis, also known as RFV analysis, allows you to bring a sales performance indicator.
Thus, to carry out the RFV analysis, it is necessary to collect three primary consumer data: regency, frequency of purchase and, finally, how much was spent by this consumer.
With this data in hand, it is possible to monitor sales better and, from there, create better strategies to sell more.