Within the B2B (“business to business”) sphere, this is basically the main form of marketing. In B2B, purchase and sale transactions are made between companies, which need a specific service or raw material to manufacture the final product that will go to a consumer, so it is not surprising that their strategy is based on trade marketing actions. If we take it to the commercial sphere, manufacturers are companies that must do business and have commercial relations with distributors, which are other companies, and will be the means to reach the final customer. That is why we consider it a form of B2B marketing.
As we have seen in other articles, the union of sales and marketing is the key to many strategies in B2B environments, such as the ABM framework. The same thing happens with Trade Marketing; we could say that, in a somewhat crude way, it is the intersection of marketing and sales.
Understanding trade marketing
One of the main objectives of trade marketing is to create an alliance where both the manufacturer and the distributor are satisfied with the marketing of the final product. It is necessary that the commercial relationship between both actors is loyal and becomes a strategic union, where both are involved as partners who obtain benefits. In addition, trade marketing strategies are aimed at using all available marketing and advertising resources, where not only the benefits of the final product are exalted, but also the most suitable distribution channels are explored.
It is a strategy that allows the product to be made visible vp security email lists to the consumer, but also gives the distributor the tools to position the product. In trade marketing, efforts always go towards the product's distribution channels, but if the trade marketing plan is complete and well structured, it is possible to convince both the customer and the distributor that the company offers the product they wish to purchase.
On the other hand, trade marketing is capable of synthesizing mechanisms that resolve communication failures between the manufacturer and the distributor. At the same time, it focuses on eliminating all practices that represent unnecessary expenses from which no benefits are being obtained. By focusing efforts on making an attractive offer to the distributor, aspects are taken into account that allow for the optimization of marketing strategies in general.
The importance of the point of sale
One aspect that trade marketing does not neglect or take for granted is the final point of sale of the product. Although the methodology is oriented towards the distributor or the distribution channel itself, trade marketing ensures that efforts are prioritized at the final point of sale. Although marketing actions that directly influence the consumer are not taken, there is a physical or digital platform, or even both, where the product stands out.
This not only makes the product attractive, but it also makes the company's business model attractive, since any retailer will want to participate in practices where sales points are prioritized, since, as a consequence, they will also benefit from the flow of consumers who want to learn about the product and purchase it.
On the other hand, there is an improvement in the business strategies and corporate culture of the manufacturer, distributor and retailer, since efforts can be made together to achieve coherent tactics. It is necessary that all actors speak the same language. It is important to highlight that trade marketing, from something as specific as the point of sale, can achieve amplifying benefits for all those involved. In the end, it continues to fulfill its main premise, which is to create alliances between all participants that guarantee growth in benefits.
Trade marketing for small businesses
For small businesses, trade marketing represents a highly efficient strategy, because with a good plan, not only is the brand positioned, but also considerable alliances are created. A small company does not have the capacity to invest in marketing that a larger company would have, which is why many small businesses find it very difficult to position their products. However, with trade marketing, it is possible, to a certain extent, to cover all the bases and find the possibility of optimizing the model.
A good trade marketing strategy ensures that the final distributor can position the product while seeing an increase in its sales. This is extremely convenient for small businesses, since they do not require large investments or a continuous injection of investment into the marketing of the product. With one or several well-designed trade marketing plans, it is possible to have business partners who seek to increase the company's sales and position the product within the market.
Importance of trade marketing in small businesses
It is able to encompass many concepts that are taken into account for product marketing. It not only looks after the needs of the consumer and considers their requirements, but also values factors of the distributor's experience placing the product on the market. In other words, to design the product marketing strategy, all the actors come into play, and instead of configuring actions separately, actions are carried out that benefit everyone. This provides a clearer idea of how to position the product, and requires less investment.
It allows you to gain advantages within the market. Trade marketing, by taking into account the needs of the distributor, as well as those of the consumer, when designing its strategies, makes the product more competitive within the market.
Create alliances. In B2B this is a key word, because in this business model it is necessary to create alliances and have partners that allow generating income. Trade marketing allows these alliances to occur much more naturally, achieves much greater loyalty from the business partner, and creates strategies where the point of sale or retailer feels valued.
It focuses on the company's objectives. With trade marketing, the customer is identified much better and changes in the market are understood more quickly. It carries out a much more detailed study, which allows each of the strategies to be fine-tuned to achieve more specific objectives, which leads to establishing priorities within the company to optimize resources.
Big fish vs. small fish
Trade marketing is completely accessible to any type of business, whether large or small. The difference lies in which of the two gets the highest return. The first thing that comes to mind when comparing this strategy between large, medium and small businesses is the investment of resources. Large companies, and even medium-sized ones, have more resources available for both trade marketing and traditional marketing strategies. You can choose from a range of options when choosing the tactics you want to use. However, the amount of resources invested is no guarantee of effectiveness. Trade marketing could be just another plan, which you can use at any time.
For small businesses, however, trade marketing can make a huge difference in their sales volume, especially since the investment to achieve an adequate strategy can be minimal. A clear example of this is the layout of the final product at the point of sale. With a good alliance with the distributor, and with trade marketing plans focused on achieving a common goal, something as simple as knowing how to locate the product can represent an effective policy that makes a change in the company's sales.
Hence, trade marketing in B2B puts all companies on the same playing field. Large companies will always have access to better and more varied resources to build loyalty among their allies and subsequently their customers, but for the purposes of achieving the final sale, small companies can be much more focused on their niche and with the commercial allies necessary to achieve their goal.
Trade marketing today
Companies are making many efforts to position their products, and many have paid attention to trade marketing, making it their most efficient strategy to position their product and increase their sales. However, it has been observed that within the trade marketing scheme, distributors and points of sale are sometimes not part of the plans established by the manufacturer. This phenomenon is observed especially in digital trade marketing strategies. Consumers are currently turning more quickly to digital channels to learn about products, and this is where not all distributors have the appropriate platforms to ensure that the consumer experience is the most appropriate. This is why they are investing in making digital trade marketing strategies more complete, and planning encourages distributors and retailers to promote the use of digital channels.
