Inside the marketing and business world we can find a great variety of disciplines and strategies focused on upgrading the shopping experience and increasing the sales on physical spaces.
Understanding them will help us identify the most beneficial actions for our brand and being able to design a successful marketing strategy in the point of sale.
In this occasion, from Ladorian we want to discover trade marketing, a type of marketing that comprehends both to the suppliers and retailers. We tell you what it is based on, what is it for and how to extrapolate this concept in objectives and actions.
What is trade marketing and how can it help our business?
It is a set of actions, sales and marketing strategies applied in physical shops whose main purpose is improving the shopping experience and increase income in retail.
Trade marketing is closely linked to the principal channels of distribution and to the physical points of sale pretending to optimize performance and the commercial outlet of the products.
One of its main singularities is that it sets out of the cooperation between two performers:
- The wholesale suppliers: Assuring the delivery of products in inventory and the availability of stock in all the physical shops from the brand.
- The retailers: Coordinating and effecting the different actions and strategies in the final point of sale to encourage a better shopping experience and increase sales in physical spaces.
“With the purpose of assuring the effectiveness of trade marketing strategies, it is indispensable that both the provider and the retailer work in parallel to conceptualize, organize and coordinate the set of actions.””
On the one hand, the supplier can suggest a series of incentives to the retailers so that they can project and promote their products in front of their rivals. On the other hand, the retailers who have the data and the first-hand knowledge should be able to inform the suppliers about the reaction of the consumers to their products, and to suggest strategies to stimulate sales and to improve the client experience
What elements we must consider in a trade marketing strategy?
With the purpose of understanding better the concept of trade marketing, let´s take a quick look to the 5 elements that make it up:
The sender: The “visible face” of the strategy. In this case it would be the point-of-sale staff in charge of transmitting the values and messages of the brand.
The receptor: The potential client approaching the physical shop.
The message: Through trade marketing we are able to impact visitors of a physical shop in a multitude of ways, for example, through the arrangement of products on the shelf, colours or digital signage elements.
The distribution channel: One of the great bases of trade marketing is the cooperation. The strategy must be fully coordinated on delivery of products and promotions.
The sale channel: The physical shop is where the brand and the client interact. The objective will be designing the best shopping experience possible.
What is trade marketing for?
The main goal of trade marketing is taking maximum advantage of the point of sale, increasing the shopping bag and sales in general in that “last mile” that clients travel in our business.
To obtain the said goal this marketing strategy is articulated around three final pillars:
- Presence and impact in the suitable channels and people
- Higher visibility of products in trade
- Strengthening of the brand and shopping experience
- Goals and actions in the trade marketing retail
Once we understand the concept we are going to see how to put into practice through a series of goals and concrete actions.
What do we want to achieve through trade marketing in the physical point of sale?
- Boost the sales through planification and coordination of offers and promotions.
Improve the rotation of products.
Increase the visual impact of the brand through different channels, for example: digital screens, showcase, product lines…
Carry out an efficient branding strategy to foment the recognition and memory of the brand.
Create qualified traffic in the sale point.
How can we obtain the maximum value of trade marketing?
In Ladorian we wager a better rate of conversion in the “last mile” of the shopping process in the retail world.
We must consider that advertising converts a 98% more regarding online. But for that we need to know how to combine the conventional marketing techniques with the new technologies.
And to achieve it, from Ladorian we propose to contextualize the communication through the analysis of data and profile clients in real time in physical spaces, with the unique objective of impacting target audiences in a personalized way through our recommendation engine.
In conclusion, revolutionize marketing offering to the potential clients what they need in each moment will help you increase sales and improve the shopping experience in the establishment.
Do you want to improve the sales of your business with a personalized communication? Join up the digital revolution of the intelligent retailers!