TRENDS & DESIGN


Trade marketing support for retail strategy

07/01/2020

CATEGORY: strategies


Today, marketing and market research are fundamental for assessing market opportunities offered by the business environment. Based on the information gathered from the market, strategies and plans are drawn up. Among the outcomes of this process is the distribution policy that the product or service will follow until it reaches the final customer, encompassing both physical and online venues and thus establishing trade marketing strategy.


Angeles Montecelo

 

The focus of trade marketing is centered on the creation of an alliance among manufacturers, distributors and retail operators with the aim of crafting a series of actions that serve to increase sales while promoting efficiency for the parties involved. To achieve this, various types of initiatives may be carried out, such as packaging adaptations, promotional campaigns, roll-out of animation activities at the point of sale, selection and adjustment of product assortment, agreements on management of the space where the product is displayed and sold, and so on.

 

With a very clear focus on the improvement of product turnover, trade marketing and retail efforts pursue similar objectives, such as improvement in turnover at the point of sale and increasing sales through the design and launch of promotional campaigns. These initiatives are also aimed at generating visits to the point of sale, as well as enhancing merchandising and branding.

Experiences in this field indicate that success lies in proper conceptualization, organization and coordination among the managers of the distribution channel and the manufacturer or supplier. That is, it is essential to achieve a proper approach to the products among all the profiles involved in the process in order to establish strategies that result in attractive products and/or services, thus generating a better relationship with and greater satisfaction of end user needs, contributing to an increase in sales.

We must bear in mind that trade marketing is applicable to physical and online companies, since both environments require distribution channels that suit the product and the market segment. In this regard, a digital strategy based on trade marketing is of the utmost importance, since, with the growth of Internet use, there are more and more consumers who use digital media to inform themselves about products during the purchase decision process. Therefore, it is key for this strategy to also be deployed online (digital trade marketing) to capture the attention of the consumer.

 

Constant Innovation, a Necessity

Given this situation, the need for retail to be constantly innovating in order to improve operations, become more competitive, and garner consumer preference is abundantly evident.

Even if a retailer has products and brands that are in high demand by customers, given their positioning and relevance in the market, it is necessary for manufacturers and retailers to roll out marketing strategies that favor turnover and provide a superior shopping experience.

We must not forget that the objective of trade marketing is to support distribution channels, so that retailers gain more visibility and customers obtain a satisfactory shopping experience, which will lead to greater sales. It is important to keep in mind that one of the tasks of retail and trade marketing is to influence shoppers at the point of sale and lead them to focus on a given product.

 

 

In order to carry out this mission with retailers, the most important trends in retail and retail marketing must be taken into account. Below is a short list of considerations to bear in mind:

 

  • The need for analysis and interpretation of data that help establish effective strategies with retailers.
  • The obvious transformation of ecommerce towards fully automated ecommerce platforms on which personalized marketing helps to retain customers through promotions, special actions aimed at the consumer experience at the point of sale, and so on.
  • It is essential to orient organizational policies towards the reduction of inventory storage, operations and management expenses.
  • The growing demand of users for environmentally friendly purchases, including not only the products they buy, but the retail establishment that sells them.
  • The development and transformation of points of sale in innovative places where the shopping experience is more rewarding, unique and which allow the customer to interact differently with products and brands.
  • The search for omnichannel approaches which blend mobile applications, virtual assistants, artificial intelligence, optimization of online stores, and points of sale that serve as delivery locations for digital purchases, among other initiatives, for the purpose of providing the customer an omnichannel experience.
  • In addition, product customizations that help the consumer feel unique and special, so the item does not match products that everyone else has. Considering this and other needs and lifestyles, it is important that the retailer knows its customers in depth in order to offer not only personalized products, but also experiences relevantshops.

* This article is the first installment in a series that will be an ongoing feature in future issues of Infopack.

 

 

Angeles Montecelo

angelesmonteceloseren@gmail.com

www.angelesmontecelo.com

 

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