Tack­ling your Trade!

Point of Purchase - - TREND - N. Jay­alak­shmi

The eco sys­tem of brand mar­ket­ing has one cru­cial as­pect –the Trade, which in­cludes the re­tailer and oth­ers who are in­volved in sup­ply­ing your prod­uct. The suc­cess or fail­ure of a prod­uct or brand de­pends on how well the trade po­si­tions your brand. Here’s where trade mar­ket­ing en­ters. And there are agen­cies, which help brands woo their trade bet­ter. Point of pur­chase delves deeper into this.

While

Trade Mar­ket­ing as a con­cept has be­come quite an in­te­gral part of the brand mar­ket­ing DNA, the con­cept sure has mor­phed, changed and had an over­haul ow­ing to the chang­ing times and dy­namism of In­dian re­tail. We thus probe this topic with a fresh out­look and quizzed some lead­ing agen­cies who have built a strong forte in pro­vid­ing trade mar­ket­ing ser­vices. We started off from the very def­i­ni­tion and went on to know what they as agen­cies have been do­ing in this space for their clients. Read on to get an in­ter­est­ing ac­count of Trade mar­ket­ing. Trade mar­ket­ing can be de­fined in many ways. Ac­cord­ing to Gau­rav Pathak, COO, So­lu­tions In­dia, it is “a brand mar­ket­ing func­tion that is fo­cused on mar­ket­ing to your sup­ply chain rather than to con­sumers”. Says he, “It is about in­creas­ing the de­mand of a brand among the trade eco sys­tem (whole­saler, re­tailer and dis­trib­u­tor). It’s about find­ing out how the re­tailer thinks and dis­cov­er­ing what mo­ti­vates him, just like con­sumer mar­ket­ing tar­gets the con­sumer, map­ping the con­sumer’s be­hav­ior.” And as Gau­rav says, es­sen­tially this mar­ket­ing ef­fort is to mo­ti­vate the re­tail­ers to buy your prod­ucts and it in­cludes of­fer­ing var­i­ous tan­gi­ble/ in­tan­gi­ble ben­e­fits to re­tail­ers such as spe­cial dis­play al­lowances and pro­mo­tional sup­port in ex­change for ad­di­tional dis­play space. Trade mar­ket­ing is about woo­ing those who po­si­tion your prod­uct or brand so the end con­sumer can see it. Rahul Sai­gal, Vice Pres­i­dent, Ogilvy Ac­tion ex­plains the dif­fer­ence be­tween con­sumer mar­ket­ing and trade mar­ket­ing by com­par­ing them to the pull and push strate­gies. Says he, “All brand re­lated ac­tiv­i­ties or con­sumer re­lated ac­tiv­i­ties can be de­fined as pull. Trade mar­ket­ing is push strat­egy, which is about push­ing your brand ef­fec­tively through var­i­ous tac­tics and trade in­cen­tives such as loy­alty pro­grammes, spe­cial schemes etc.” He adds fur­ther, “There’s a point at which trade mar­ket­ing and shop­per mar­ket­ing in­ter­sect, for e.g., if I give the re­tailer the dis­play size and spec­i­fi­ca­tions for my brand and the mes­sage to be car­ried on it, and I pay him a cer­tain amount for it, it is trade mar­ket­ing. But the mes­sage car­ried on the prod­uct is shop­per mar­ket­ing and that is the point at which the trader and the shop­per in­ter­sect.” Sameer Me­hta, VP, Mul­ti­plier, a trade mar­ket­ing con­sul­tant, ex­plains the dif­fer­ence fur­ther, “Prod­uct Mar­ket­ing en­com­passes all “7P”’s of mar­ket­ing, which are Prod­uct, Pric­ing, Place, Pro­mo­tion, Pack­ag­ing, Po­si­tion­ing & Peo­ple and it cov­ers the whole jour­ney of the Prod­uct right from Pro­duc­tion till con­sump­tion. Trade Mar­ket­ing is tar­geted to­wards Trade Chan­nel only that in­cludes Trade schemes, Trade Loy­alty Pro­grams & pro­vid­ing mar­ket­ing re­sources in the Trade fun­nel. In a way, Trade Mar­ket­ing could be one of the Pro­mo­tion routes for Prod­uct Mar­ket­ing.” Trade mar­ket­ing thus plays a very im­por­tant role in de­ter­min­ing how your end con­sumer or shop­per per­ceives your brand or re­sponds to it. En­tail­ing the sig­nif­i­cance fur­ther Gau­rav says, “Trade or chan­nel is the foun­da­tion for ev­ery busi­ness and the Brands are in­vest­ing sig­nif­i­cantly in Trade mar­ket­ing to re­tain an edge over their com­peti­tors. Re­search shows that over 70% pur­chase de­ci­sions about a brand are made at the point of sale by the con­sumer. Vis­i­bil­ity and Avail­abil­ity be­come crit­i­cal there­fore. Trade mar­ket­ing aims to en­sure that the chan­nel part­ner is en­thused enough to

Rahul Sai­gal, Vice Pres­i­dent, Ogilvy Ac­tion

Sameer Me­hta, VP, Mul­ti­plier

Gau­rav Pathak, COO, So­lu­tions In­dia

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