Trade Marketing Basics

Trade Marketing: Basics

• Trade marketing focuses on businesses and facilitating the buying process within specific channels.
• It encompasses all marketing efforts aimed at businesses, not just consumers.
• It's about buyers, not just consumers, meaning it focuses on the distribution channel and its participants.

Examples of Trade Marketing Initiatives

• Free chillers for Coca-Cola distributors
• Free freezers for Selecta distributors

The Distribution Channel

• Direct Channel: The manufacturer sells directly to consumers without intermediaries.
  • The manufacturer controls the entire process.
• Indirect Channel: Intermediaries like retailers, wholesalers, agents, or distributors facilitate the connection between the manufacturer and customer.
  • Provides wider reach but less direct control for the manufacturer.

Ecosystem of Trade Marketing

• Manufacturer: Source of the product.
• Sub-Dealers: Part of the middlemen category facilitating the distribution chain.
• Distributors: Supply large retailers like Sephora and Ulta.
• Influencers: Impact consumer decisions and drive demand toward retailers.
• Consumers: The final destination for the product.

Point of Purchase (POP)

• Definition: The location where customers choose to buy products in a store.
• Purpose: Attracts customers and promotes products, ultimately influencing whether they make a purchase.
• Key Elements:
  • Stand Out: Displays should be visually appealing and highlight key information.
  • Strategic Placement: Displays should be in high-traffic areas for maximum visibility.
  • Creativity & Planning: Effective POP displays require planning, creative ideas, and strategic thinking.
  • Special Products: Limited edition or seasonal items can create a sense of urgency and capture customer interest.

Point of Sale (POS)

• Definition: The location where transactions are completed, either physically in stores or online.
• Functionality: POS displays are strategically placed to encourage impulse buying, typically featuring smaller, lower-priced items to entice customers to spend more.
• Components:
  • Hardware: Barcode scanners, card readers, receipt printers, etc.
  • Software: Payment processing, inventory management, and sales statistics.
  • Payment Methods: POS systems can accept various payment methods, including credit, debit, mobile payments, and gift cards.
  • E-commerce Integration: Some systems allow online sales capabilities.

POP vs. POS Display Strengths

• POP Display Strengths:
  • More products showcased
  • Appeals to customers with multiple options
• POS Display Strengths:
  • Emphasis on single packaged items
  • Simplifies the purchasing process
• Both help with:
  • Increased brand awareness
  • Encouraging impulse purchases

Trade Marketing vs. Brand Marketing

• Brand Marketing: Builds consumer awareness and demand.
• Trade Marketing: Ensures products are available at retailers.

Trade Marketing in Action

• Unilever's Partnerhub: A B2B platform providing real-time data, trade promotions, and retailer support.
• Procter & Gamble's Customer Portal: Offers seamless collaboration with distributors and retailers through customized trade marketing strategies.

Digital Tools in Trade Marketing

• 3. Email Marketing Software:

  • Key Features:
    • Personalization: Customized offers based on retailer size, location, preferences.
    • Automation: Automated product launches, seasonal deals, and updates for efficient management.
    • Segmentation: Targeted emails for varying retailer types based on behavior.
    • Mobile Optimization: Designed for readability on smartphones.
  • Benefits:
    • Cost-effective
    • Increased Reach
    • Localized content
    • Boost Sales
    • Engagement

• 4. Landing Pages for Lead Generation in the Philippines:

  • Purpose: Capture leads from potential retailers or distributors.
  • Uses:
    • Product Promotions
    • Event Registration
    • Exclusive Trade Deals

Social Media in Trade Marketing

• Facebook:

  • Purpose: Used for B2B inquiries, order placement, and customer service with retailers.
  • Use Cases:
    • Promoting trade products
    • Connecting with retailers
    • Building brand awareness

• LinkedIn:

  • Professional Networking Platform: Focuses on businesses and professionals, particularly for B2B marketing.
  • Trade Marketing Use Cases:
    • Building connections with retail partners
    • Promoting trade shows, industry events, and thought leadership
    • Targeting professionals in purchasing, distribution, and trade marketing

• Instagram:

  • Use Cases:
    • Constant Contact: Effective for managing event invitations and follow-ups.