In Vietnam, the concept of Trade marketing is not new, but the tasks and responsibilities of the Trade marketing department are still quite vague. Trade marketing seems to only be found in B2B businesses in the FMCG (fast-moving consumer goods) field. However, in B2B business in all industries, having a Trade marketing strategy is an extremely important factor, directly contributing to the customer's impression of the brand.
This article will be a "handbook" on Trade marketing, helping B2B businesses make a breakthrough in commercial business. Let's find out with 1C Vietnam!
Our “handbook” opens with the most basic definition:
Trade marketing is a form of B2B marketing.
Trade marketing is the art of marketing products specifically for businesses (as opposed to other forms of consumer-oriented marketing). Usually, the main goal of a Trade marketing campaign is to sell products to other companies, who can then sell those items to their own customers.
Unlike the goal of Brand marketing, which is to capture the mind of consumers (Win in Mind), the main purpose of Trade marketing activities is to "capture" customers at the point of sale (Win in Store).
Typically, manufacturing and distribution businesses are the subject of Trade marketing efforts in an effort to sell their products to retailers (sometimes referred to collectively as supply chain partners).
Why is that? Please explain, for a product to be sold in stores to consumers, retailers need to source the goods from some source. Retailers can buy products directly from manufacturers, but they can also buy them through wholesalers or distributors.
Although it is faster and more profitable for manufacturing or distribution businesses to sell directly to retailers, this is quite risky and not likely to be successful due to too much competition in the market. big. If you do it this way, before receiving orders from retailers, the manufacturer will need to promote the product to all 3 parties - the distributor, the retailer, and the consumer. Therefore, Trade marketing strategies will help B2B businesses create demand for both retailers and end customers.
Due to its application to a special target audience, Trade marketing is still a fairly new concept for many Vietnamese businesses today. Understanding Trade marketing helps businesses realize the importance of proper distribution, sales and synchronization with current marketing strategies. From analyzing and evaluating the specific needs of retailers and consumers, businesses will understand their customers and apply the right tactics in each Trade marketing strategy.
Pham Van Tin, Vice President of Rando Raincoat Company, commented, "If you only focus on brand development and ignore distribution channels, there will be no results for consumer-oriented marketing strategies. that businesses are applying". This comment shows that in recent times, many Vietnamese businesses have realized and want to achieve the effects that Trade marketing brings.
Research by B2B experts shows that 75% of purchasing decisions are made by consumers at the point of sale, 35% of customers are willing to change their choice due to the influence of in-store factors, currently in Vietnam. Nam has more than 1,000,000 operating points of sale and is gradually appearing more and more retail forms with higher requirements. All these numbers highlight an undeniable truth: The Vietnamese market is a "golden opportunity" for businesses to develop Trade marketing right now.
Especially, for highly competitive products such as fast moving consumer goods (FMCG), having a brand presence everywhere around consumers in an attractive way is the key to surpassing competitors in the industry. .
In addition, a methodical Trade marketing strategy also brings businesses benefits such as:
Trade marketing strategies can be created differently by each business depending on the characteristics and characteristics of each product and brand. One thing businesses need to keep in mind is that all of these activities are geared towards winning at the point of sale, in order to change the decision and buying behavior of the end customer. As a result, the sales and profit results of the business will be as expected.
Here, let's take a look at 7 basic Trade marketing strategies with 1C Vietnam:
1.Participate in/organize trade shows
Trade shows are the ideal place to connect and build business relationships widely and quickly. At the same time, this is also an ideal environment for businesses to introduce their products to retailers and distributors, and at the same time increase brand awareness.
2.Building a trade incentive program
Establishing close, sustainable relationships with retailers and distributors is very important. Promotions that are “bargain” and creative will stimulate the interest of customers and increase the likelihood of a next purchase.
3. Take advantage of media channels and commercial websites
Advertisements and articles on newspapers and commercial information websites will help viewers increase brand awareness of the business. Posting ads on reputable information sites can cost a lot of money, but this is a necessary and worthy investment, when businesses will receive back hundreds of times the advertising fee. spent. At the same time, PR activities will also bring businesses a prestigious appearance and trust from customers.
For effective marketing, a strong brand needs to stand behind your product. Supply chain partners aren't just interested in making quick, short-term profits. All parties want the products they sell to be bought back in the long run, not just once, and businesses will only gain customer loyalty when they know how to build a smart reputable brand.
5.Build a strategic partnership
The goal of Trade marketing is to create a win-win situation by helping all parties achieve common goals. Simply put, manufacturers want to sell their products, wholesalers want to distribute products to as many retailers as possible, and retailers want those products. So if all parties are determined to have the same goal, that's a great place to start.
Relationships are crucial to success. Commercial enterprises should aim to work with supply chain partners in a variety of ways. This could include setting up warehouse and shipping management automation systems to save on overall costs, or even exchanging market research information so that everyone can better understand what's going on. consumer behavior. At the same time, cooperation in advertising and communication campaigns and sharing resources and resources to enhance marketing effectiveness is also a strategy that commercial enterprises should apply.
6.Continuous market research
Knowledge is key to building mutually beneficial partnerships with supply chain partners. In today's digital age, information and data is the power that helps businesses outperform competitors. For commercial businesses, understanding products, markets and target audiences will help businesses create better products, choose more suitable distribution items and apply marketing strategies. more correct.
Of course, Trade marketing professionals must also follow the trends of the times. Many Trade marketing strategies can be implemented through online platforms such as Google ads, Facebook ads, email ads,... just like digital marketing tactics for consumers.
1C:Trade Management is a solution that fully automates operations and comprehensive management for commercial enterprises. With marketing management function, the software will help businesses fully manage Trade marketing campaigns from the first stage to the last step, helping businesses minimize errors, confusion, and not miss opportunities for development. and evaluate the actual effectiveness of each campaign. The marketing management function helps to automatically calculate the price according to the business model/place/time/client to properly apply the marketing program, support hundreds of different promotional situations, record information and get results. campaign results, save detailed information and competitor unit prices to give accurate promotion results reports.
Give wings to the growth of your business from today with 1C Vietnam . Contact us now to get detailed advice and experience a completely free technology solution!