Although the sales process has become more complex over time, the essence of the activity has stayed the same: the products that are manufactured need to be sold. In this context, the need to invest in trade marketing arises because manufacturers still need to connect what they produce to the end consumer.
To do that, however, they need to make this proposition attractive to the distribution chain, made up of the retailers, distributors, and wholesalers who sell these products.
The task of improving the sales process has become a versatile business skill, and that is the key role of trade marketing in business-to-business (B2B) relationships. So, in this post, get a better understanding of the reasons to invest in trade marketing. We’ve listed 6 of them below. Read on!
1. It improves brand awareness
Trade marketing initiatives need to make the manufacturer’s products appealing to distribution channel partners. Communicating why one item is better than another, taking into account aspects such as functionality, price, and value to the customer, is therefore part of this proposition.
When product features are reinforced in communication, they influence brand perception not only within the circle of business relationships between supplier and retailers, but also among end consumers — to whom the standout attributes of the product will certainly be passed on.
It’s worth remembering that any investment to increase brand awareness pays off over the long term, and this can create a mistaken impression of the potential of this approach.
2. It enhances the consumer experience
Trade marketing can use a wide variety of methods to promote products, from simple offers that encourage purchases at the point of sale to presentations, exhibitions, or displays that create an appealing environment and encourage contact with the brand in a distinctive setting.
Situations like these offer great opportunities to provide unique experiences to consumers. This can result in positive, memorable moments, significantly strengthening the audience’s relationship with the brand and its products.
There isn’t always a need to create a temporary space. The idea may be to invest in a relationship that brings mutual benefits. Placing a famous snack bar inside a department store, for example, is something that can surprise and attract shoppers.
3. It fosters stronger relationships with retailers
Manufacturers need to build deeper relationships with retailers for the sake of their business dealings. Strategic promotions and frequent incentives are trade marketing initiatives that can motivate and drive repurchase rates.
In fact, it’s well known that every customer likes to receive special treatment. So it makes perfect sense for trade marketing to create situations that encourage this closeness and nurture trust in the relationship between manufacturers and distribution network partners.
4. It works even better with digital marketing
Trade marketing has certainly evolved over time, but with digital marketing it can get even better. Online initiatives bring more dynamism to the strategy and allow the results of each step to be evaluated through systematically tracked metrics.
Although the scope of trade marketing is broad, a lot can already be done online. Digital marketing resources, such as publishing content on websites and blogs, sending email marketing, and running initiatives on social media platforms, can also be used as tools for the strategy and can deliver meaningful results.
5. It brings a strategic view of the business
We know that every company has specific needs and a distinct audience. That’s why it’s essential to have a comprehensive perspective of the business before planning any tactic.
Strategic planning is the first step in trade marketing. It positions the customer first, and only then are the initiatives decided on and carried out. So we can say that the activity’s initiatives necessarily require strategic vision and excellence in execution. Only then is it possible to ensure effective results.
A trade marketing specialist needs a broad view of the business, not least because, in some cases, it’s necessary to change processes that, although well established, no longer deliver the expected results.
When it comes to putting this type of marketing into practice, there’s room for bold professionals. That’s because not every company has up-to-date, important management tools in place, such as a business plan and research on consumer behavior at the point of sale, for example.
This opens the door to implementing changes and process innovation.
6. It contributes to the product’s value proposition
Customers are becoming more demanding of their suppliers. So it’s increasingly important to find a way to determine the “value” of products and communicate it clearly.
The value proposition, in turn, should be guided by strategic positioning and defined during planning. Without respecting these elements, it becomes difficult to assign value to the product, or that value gets lost, wasting the effort put into trade marketing initiatives.
Another interesting aspect is the consultative approach with customers. Positioned as a consulting service, trade marketing has the power to become a specialized service grounded in knowledge of the business. In this way, it supports and enables the achievement of goals, including helping build a value proposition around the product being offered.
In fact, the consultative approach isn’t exactly new. For many companies, it’s an established practice in which salespeople take on this role. Trade marketing activities are no different. Knowing the retailers’ needs is just as important as knowing the manufacturer’s line of business, in order to determine which strategy to adopt.
Finally, everyone knows that price is no longer the only factor that determines whether a product sells. In fact, a range of factors can be leveraged to make it attractive. Investing in trade marketing is what can provide the answers on how to achieve this!
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