Pros and Cons of Trade Marketing

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Advantages:

Audience expansion . Many consumers ignore media advertising, but they trust their regular stores. Therefore, store recommendations can be the key to increasing sales among people who do not support other advertising channels.

Competitive advantage . When buying travel agency email list large quantities of goods on favorable terms, wholesalers and retailers are interested in selling them effectively, which allows them to get ahead of competitors and attract buyers with the most favorable offers.

Improved product availability . Many people living in remote rural areas or those who prefer to avoid visiting large shopping malls may have trouble accessing the advertised product if it is not available in local stores. However, with the trade marketing approach, the product will now reach them on its own.

Disadvantages of the strategy:

The need to share income with various participants in the trade chain . Wholesalers and retailers also seek to get their share from the resale of products, which ultimately reduces the manufacturer's profit compared to direct sales to end consumers. It is necessary to carefully calculate the terms of loyalty programs, promotions and discounts provided, so that even with a reduction in the price of the product, you still ensure a benefit for yourself.

The lack of opportunity for direct interaction with customers means that any objections or dissatisfaction must be clarified not directly from the customers themselves, but through intermediaries.

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Trade Marketing Team
Some companies decide not to form a specialized group, but delegate the tasks to the sales or marketing department. However, for large productions, it is recommended to allocate a department entirely focused on interaction with partners. This department can be called a B2B department.

The main participants of this group may be:

Specialist
This person directly develops and coordinates the strategy. He or she must have comprehensive knowledge of marketing promotion, successfully interact in the B2B environment, strive for results and supervise other team members.

Data Analysis Expert
Responsible for comprehensive analysis of data and performance indicators. Ensures the provision of all reports and conducts in-depth analysis. Always aware of the current status of the selected strategy with an assessment of its effectiveness.

Document flow organizer
This employee plays the role of assistant manager and analyst, responsible for working with documents, receiving and processing applications.

The team's key responsibilities include monitoring trade marketing trends, continuously innovating and making timely decisions.

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Creating a Trade Marketing Strategy
Before you begin implementing a trade marketing strategy, you need to do some preliminary preparation:

Set goals . Formulate what result you want to achieve using trade marketing, whether it is increasing sales volumes, strengthening cooperation with partners, or something else. If the goal is not clearly defined, it will be difficult to move forward and evaluate progress.

Analyze the market . Conduct market and competitor research. This will help you understand which approaches may be most effective. Do not skip this step. It is important to be aware of competitive offers and advantages, as well as to identify their shortcomings in order to attract a loyal audience to your brand.

Study the demand . Determine what resources you are willing to devote to trade marketing. Remember that investments in this area usually generate income. The share of expenses will depend on various factors, including the cost of the product, sales volume, geography, and others. It is recommended to allocate at least 10% of the total costs. Then it is worth analyzing a specific business and taking into account the specifics of the industry to determine the necessary costs for trade marketing.

If you are just planning to engage in this type of marketing, start with small test actions (cheap and short-term promotions), determine comfortable costs and study the response. As necessary, increase the budget for the most successful activities.