What is trade marketing? What are the challenges? Trade Marketing 2.0: How Companies Advertise in the Digital World
Trade marketing deals with the marketing and offering of all products, sub-products and processes in retail. Due to the various sub-areas in trade, which not only consist of the sale and sale of the end products, but also the procurement of the product, the actual competition and internal processes, trade marketing is a very diverse area in trade marketing. Due to this diversity, it is necessary to take a closer look at the individual areas and their special features.
The term trade marketing stands for institution-specific marketing for trade companies, mostly understood as procurement and sales marketing. All trade marketing instruments are to be used in accordance with the specific circumstances in the procurement and sales markets. The main difficulty is the coordination of the direct, reciprocal consequences.
Trade marketing is an interesting area for everyone who works with trade and trading companies. This mainly affects manufacturers and people who are involved in the procurement and manufacture of products. This affects the employees of the company, all of their suppliers and also the competing providers. However, since the finished products and services go to very different types of customers, trade marketing is also relevant for the end consumer. Due to the many different areas of application and instruments of trade marketing, sub-areas and the management thereof can be of interest to almost everyone.
The sales market offers the platform on which products such as consumer goods and services are offered and which customers should be encouraged to buy. In marketing, particular importance is attached to knowing the needs of customers and presenting the product or service as precisely as possible. Above all, the operational marketing department takes care of how the company's performance can be placed on the market in the best possible way and how the greatest possible sales can be generated. Sales marketing can be distinguished on the one hand by its focus on the local, national or international market, and on the other hand by the offer and the participants. Even if most people immediately think of sales marketing when they first think of marketing, this alone is not enough. Without the other sub-areas of trade marketing, a product cannot be properly produced or offered on the market.
The procurement market clarifies where the raw materials for your own production come from or which products are needed to offer a service. This market is therefore upstream of production and the sales market, and every manufacturer and every company that offers products or services on the sales market is also represented on the procurement market. Not only the individual parts and resources are procured for the production, but also the financial means, labor and preliminary products required for the completion. Due to the ever more global networking, the procurement market can also be expanded and changed internationally. For companies and manufacturers from which the resources and parts are sourced, their sales market is the procurement market of the producer of the end product. The marketing of the procurement market is therefore about influencing the purchasing activities in a targeted manner and making them efficient.
The competitive market is, as the name suggests, a market in which there is a lot of competition and therefore a lot of comparison. This competition can be divided into the large number of suppliers and a large number of buyers. If many suppliers or suppliers offer the same good, individual trading companies can have relatively little influence on the price. The opposite of this would be a monopoly market in which there is little competition or a scarce good is offered. Due to the large offer, it is therefore important in competitive marketing to stand out from the competition. This is usually done by emphasizing product features or particularly low sales prices. Aside from competing for the buyer, competitors in retail can also be used as a source of information. They serve to exchange experiences and offer the opportunity to compare processes and procedures in the company.
The fourth market served in trade marketing is the internal market. On the internal market, the coordination takes place within the company. On the one hand, this is about the correct presentation and disclosure of the goods and goods in the shops. Above all, questions about shop design and product presentation are clarified. On the other hand, internal processes are also important. Agreements on staff training and further education as well as the control of processes such as incoming goods inspection also fall under the field of the internal market.
In trade marketing as well, as in marketing in general, the goal is ultimately to generate customers and convince them of your own product, services and the entire company in the long term. Retailers want to be remembered by customers for the high quality of service and product. After considering the various markets, however, it becomes clear that this is not only possible through pure sales marketing. The procurement of the individual parts and the securing of shares on the competitive market as well as the internal realization play a decisive role in the conviction of the end customer. The success of trade marketing therefore lies in the systematic and consistent implementation in all four markets.
Due to the ever increasing cross-media nature, more and more different platforms and measures are being used in retail marketing. Products and services can be placed on various offline and online channels using a campaign.
Augmented Reality offers are also becoming more and more popular in sales marketing. In online shops in particular, products can be tried on, combined and tested virtually using various measures. Thus, the technical test can prevent bad purchases in advance.
Social networks are not only becoming more and more popular in private life. In retail marketing, too, communication is increasing online and via platforms. These marketing instruments can be used to pick up interested parties directly and in their everyday life. The simple filtering and target group definition also make the networks one of the most popular marketing measures.
Due to the ever advancing technical development, technical support can be used in many areas in the marketing process. Whether it is for the administration of data or the direct transfer to the affiliated service providers, the use of IT systems saves time and money. These resources can be reinvested in other process steps.
In trade marketing, especially in the sales market, it is important to reach customers and apply a uniform marketing strategy. This uniformity and the efficient use of marketing opportunities can be supported and simplified by a software solution. Here it is important to be able to access the various digital resources and, for example, to forward images, videos, graphics, but also data or address lists to everyone involved. If the entire database of media is made available to employees (via digital asset management), they can first be inspired by the media selection and develop new ideas. If this is not the case, media can only be requested from the head office in a targeted manner, which leads to a less creative or varied use of the media. A marketing portal helps to ultimately include these media in finished marketing materials.
All print media and instruments of a classic web-to-print platform can be combined into one system in a marketing portal. In addition, cross-media marketing materials of all kinds can be personalized and edited and ordered, printed or reserved directly from the service provider. It is not only possible to create printed materials, but also to place digital advertisements and to create and even advertise posts on social media. The large mix of different marketing materials makes it possible to accompany a complete campaign in trade marketing with the right marketing measures. Through the integration of the company's own digital assets management system, stored data and media can also be used directly in the production of marketing materials and further simplify the process. In addition to these advantages, a marketing portal can also be used to publish a general plan of marketing focal points, which all relevant sales partners can access and which they can take into account for their own planning.