Stimulation of sales is one of the keytasks of any trade organization, usually implemented using well-known direct advertising of goods and services. A worthy alternative to this method is a set of trade marketing activities, the popularity of which methods in the world grows day by day. Let's try to understand what is trade marketing and how it works.
In the general case, trade marketing is a specialthe organized set of measures to promote sales of products, used by wholesale and retail companies. It functions by means of special instruments of influence on consumers of different levels.
In this case, directto be rendered both to final buyers, and to intermediate ones, the role of which is played by participants in the chain of sales promotion - sales representatives, distributors, dealers. As for methods of influence, it can be both material means of influence, for example, rewards, discounts, gifts, and any other types of motivation.
This method of stimulation is much more effectivedirect advertising - ATL, in which all manufacturers are so eager to invest. While it just reminds people about the product being promoted and tries to convince them of the need to buy it, trade marketing, which is an indirect advertisement or BTL, directly or by the hands of intermediaries, inclines the buyer to give preference at the time of making a purchase to him.
As the main goal of the stimulatingmarketing should not be considered a simple increase in profits or sales in a short period or perspective. Mostly, all actions are aimed at creating a common positive image of the manufacturer, creating a loyal consumer attitude to it and the products it produces.
Trade marketing involves achieving key goals by performing the following list of tasks:
Speaking of trade marketing, it should be noted,that this is only one of many ways to stimulate the sale of products. At the enterprise, it is an integral part of overall marketing planning and budgeting, and should be carried out in close connection with the ongoing program of positioning and brand development.
Depending on the size of the organization,be created department or hired responsible specialist - trade-marketing. In any case, a new division or position will be part of the existing marketing department. It is also possible to outsource these functions.
The newly introduced structural unit or third-partythe contractor should study and analyze the current state of the sales market, develop and implement on the basis of the obtained data a plan of trade-marketing activities to promote the goods among intermediary trade organizations and end-users.
The toolkit of trade marketing is extremely wide. Among its key tools are:
Decision on the use of certaintools are accepted by persons responsible for implementing the trade-marketing strategy. The final result from the application of each of them is determined primarily by the specific features of the particular situation.
Trade marketing is a system of knowledge,revealing exactly how you can influence distributors, dealers, sales representatives, so that they are actively promoting the right product among buyers. Among all the instruments of influence, it is possible to single out the material stimulation of the intermediary goods-distribution chain. Usually, it is organized in the form of shares held by the supplier, which can be directed to:
Commercial marketing considers merchandisingas a special set of events held on the territory of retail outlets and aimed at increasing the volume of sales to the end customer. All promotional activities are carried out by the manufacturer's personnel in coordination with or without the intermediary. Among the main areas of work can be identified:
Such types of incentive measures asmerchandising, is classified as an intangible group, they are mainly aimed at increasing loyalty on the part of intermediate consumers. The following are their varieties:
Despite the variety of methods of working withintermediaries, do not forget that trade marketing is also a set of effective ways to influence the consumer of the goods. Forming additional motivation from the buyer, they are aimed at short-term increase in demand for the promoted goods. There are the following types of such impact:
In addition to perfect possession of tools,The trade-marketing manager should be able to correctly evaluate the effectiveness of the complex of measures. This is a very important point, since the implementation of the trading strategy is very costly and the management will most likely want to know how profitable this investment is and whether it is worth continuing to do so.
Qualitative or communicative effectivenessThe trade-marketing campaign shows how successfully its behavior has affected the image of the manufacturer. Mostly, we are talking about increasing brand awareness, loyalty to it, and informing consumers about changes in the price policy and products of a particular brand.
Economic efficiency isa calculated result from the use of a set of sales promotion tools. It is usually carried out on the basis of target indicators - sales, purchases, distribution of goods, the size of the customer base. The analysis compares their values before and after the trade-marketing events.
Having dealt with what is trade marketing,should understand how to organize the process of its successful application. The set of steps, as well as the set of tools used, will vary depending on the particular case. However, we can identify the key stages of the trade-marketing program:
The results obtained should be compared withexpected. After making the appropriate corrections, the process must be repeated anew. Cyclicality is associated not only with the inability to select from the first attempt an ideal scheme of trade marketing, but also with unstable conditions of the internal and external environment that require an adequate change in the work of the company itself.
Trade marketing is a joint activitylinks of the trading chain for the promotion of goods from the producer to the consumer. A competent organization can guarantee exceptionally positive results for all its participants.