Trade marketing is a field that relates to increasing demand with supply chain partners, such as wholesalers and retailers rather than at the consumer level. In short, it is the process by which you ensure supply is available to meet consumer demand.
Trade marketing, why should a wholesaler stock?
As a general rule, wholesale entities include various types of distributors, distribution centres and sub distributors. Depending on the number of levels within the supply chain, these distributors may be buying goods directly from the manufacturer of the product, or indirectly from other distributors.
A wholesaler therefore plays an important role in supply and they are generally able to achieve better margins than independent retailers as they purchase in larger amounts. These goods are then distributed to a network of independent retailers.
A wholesaler should stock products for the very reason that they are able to make larger profits. This is not only because of their ability to buy in bulk, but also that without them many independent retailers would not be able to operate.
Why should a retailer sell?
Retailers are a vital step in the trade marketing process as they are the ones that present the product or service of any given company or manufacturer to the final consumer. First and foremost, it is their job to sell.
They are becoming ever more focused on maximising profits, and the main way for them to do so is by increasing sales. Achieving the best possible margins from their manufacturers.
Retailers sell primarily to make profits. Further to that, without retailers, manufacturers would have a much more difficult task of getting their products into the hands of consumers.
It is obvious that traditional roles of retailers and manufacturers are changing nowadays because of the Internet. However retailers still have their place and an opportunity to be successful if they employ the correct tactics to create and meet consumer demands.
Why should a consumer buy?
Consumers buy products for one of two main reasons: necessity or desire. Consumers buy food, clothing and other essentials because they need them. Other items, such as tablet computers and media for example are bought to satisfy a ‘want’.
Consumers can be led, through successful brand marketing, to desire certain goods. Brand marketing is a massively important aspect in determining if a consumer will buy your products or those of a competitor.
So creating a desirable brand through advertising, branding and other methods is key to influencing consumer-purchasing decisions.
What is our motivation?
We work at different levels with manufacturers, wholesalers and retailers by offering a range of services to increase consumer awareness, streamline the sales process and ultimately improve profitability for each part of the chain.
Our motivation stems from bettering each part of the supply chain by focusing different tactics to create better products, that sell easier.
Our process of assisting manufacturers, wholesalers, retailers and consumers
Manufacturers are driven by profit and therefore we know that they can be motivated to increase production and supply by the prospect of increasing profits. If retailers are able to successfully increase consumer demand for a product, they will require larger supply, which in turn results in more profit to the manufacturer.
By working in conjunction with manufacturers, wholesalers, retailers and consumers, we are able to tailor services such as advertising, branding, marketing and packaging to meet individual demands.
How we help motivate retailers
It is important to note that retailers are one of the most important links in the chain of supply. To a certain extent it doesn’t matter how good a product or service is by itself, a manufacturer or wholesaler (or any other link in the chain above them) will not be successful if the retailer lacks motivation or the correct strategies.
Rewarding, supporting and educating
To motivate retailers, manufacturers can issue incentives for good performance, such as a target and bonus scheme. It doesn’t have to be monetary, just something that will be desirable to the retailer. Secondly, a retailer will have a harder job selling something without display examples, so make their life easier and ultimately more successful by providing them with point of sale material, product examples and up to date information. With this in hand retailers will be more prepared and motivated to sell!
How we motivate consumers
Consumers can be motivated in a variety of ways, but there are a few key areas that are important. First and foremost, is the value to price ratio. In general, consumers show interest in products or services only if the price is right for them.
Further to this, if there is more than one retailer offering said product or service and all benefits are seen to be more or less equal, they will usually choose the cheaper option. Pricing is an important factor in motivating consumers to buy so being aware and up to date with the competition is imperative.
Secondly, in an ever more connected society; convenience is becoming an area that is important to compete on. Retailers need to make buying convenient for their customers in order to entice them. This can involve shopping hours that meet demand or offering online shopping or mobile apps.
Without these things, customers will search out other, more convenient options. Finally brand. Customers are swayed with regard to what they perceive as the right option, whether or not it actually is. Creating an appealing image by way of targeted advertising can be very influential in swaying a customer to buy.
Trusting us with your trade marketing campaigns
You can definitely trust us when it comes to ensuring that your business maximises its profits, no matter what part of the chain supply you are in. Contact us today so we can discuss what options are most suited to you.