3 Essential Marketing Actions for Distributors
The goal of trade marketing is to increase your distributors’ sales and see a direct improvement in your own figures. To achieve this, it’s crucial to detail a strategy and understand that the distributor’s successes will lead to significant changes in your results. Additionally, you must bear in mind that distributors will not generate the sales strategy themselves. As a result, it is necessary to maintain constant contact and spark their interest in selling your brand.
“The future of channel marketing is about adding value to your partner before you extract value for yourself,” said Lauren Hintz, a team manager at HubSpot, a CRM focused on Inbound Marketing.
Initially, an analysis of your distributors should be carried out, with the aim to see how your company fits with their image or communication. This will enable you to make appropriate decisions with a solid background.
The purpose of trade marketing is to make the product more attractive, enhance the buying experience, and increase sales.
If you need more information about the distribution channel and how to retain them, you can read our definitive guide to a channel loyalty programme.
Partnership Between Manufacturer and Distributor
A partnership is created between the manufacturer and the distributor, which involves following a joint strategy to achieve shared goals.
What are the goals of trade marketing?
Trade marketing aims, among other things, to transform the total production process, impacting the producer, for example by improving their raw materials. On the other hand, it also seeks to enhance the experience at the consumer’s point of sale.
Among the main objectives set by trade marketing, we can highlight the following:
– Improve the rotation of products at points of sale.
– Increase sales through the planning and coordination of promotions.
– Strengthen the development of merchandising and branding actions.
– Increase product traffic.
3 Essential Marketing Actions for Distributors
1. Actions on Products
– Rationalisation of products: elimination of references with low rotation or low margin.
– Improvement of product rotation.
– An increase in the quality of the features and presentation of the product.
– Evolution of the product range: launching new versions, improving the product or removing some variants.
– Introduction of new brands.
– Modification of packaging: improvement of raw materials, modernisation of the format.
2. Actions on Pricing
– Change of current price rates and discount scale.
– Variation of sales conditions and terms.
3. Actions on Communication
– Personalisation of contact with distributors and customers.
– Specific campaigns are carried out between different distribution channels: this includes the creation of promotion campaigns, public relations, sponsorship, etc.
– Motivation of internal staff.
– Trade shows
Logistics is another key aspect of trade marketing, as it aims to meet the needs of all distribution channels. Furthermore, trade marketing provides raw materials to producers to accelerate the process of delivery to end consumers.
Trade marketing creates an experience for the consumer, turning the point of sale into an attractive and comfortable place for them. Therefore, the intention is that shoppers feel rewarded through specific promotions. Consequently, partnerships between wholesalers, retailers, and various product distribution points play a key role here.
Ultimately, distributor marketing allows us to rectify errors at all levels of the production process. This is because it reactivates communication across all points of the process, from the producer, through the distributor, to any local supermarket. This favours the reduction of expenses and optimises this process by obtaining higher quality products that are in tune with the market.
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