Today, sales strategies are crucial pillars for companies aiming to achieve strong economic results and sustainable growth. For this reason, more and more brands are studying shopper behavior at the point of sale to develop strategies that increase sales and cultivate loyal customers.
Among these strategies, Trade Marketing and Shopper Marketing have emerged as key methods to attract shoppers. In this article, we will delve into each and explain why it's important to apply them to your brand at the point of sale.
Trade Marketing emerged in the 1980s and has since established itself in the retail sector. It has led some supermarkets to create dedicated departments focused on these strategies to boost sales and maintain brand positioning in the consumer's mind.
Today, many companies allocate a significant portion of their budget to designing and developing such strategies.
Trade Marketing encompasses various functions, including:
In essence, Trade Marketing involves a set of actions designed by the manufacturer based on defined strategies and conditions, considering the characteristics of the segment and points of sale, all aiming to satisfy both the consumer and the distributor.
This is achieved through a marketing strategy between the manufacturer and the distributor, collaboratively designing and executing a plan that is profitable and effective for both parties. The goal is to share knowledge and market behavior information, thereby improving commercial relationships, merchandising techniques, logistics, product distribution, and inventory turnover at various points of sale.
Such turnover can be achieved through promotions targeting the end consumer. Therefore, it's essential to consider various Trade Marketing tactics, keeping in mind the diverse options available at the point of sale.
1. Conduct Market Research
Market research helps you better understand the consumer, monitor trends, and identify factors related to your industry.
2. Design a Solid Plan
Once market research is complete, it's necessary to design a robust plan that helps establish objectives. This includes determining where to direct your marketing efforts, how much capital to invest in commercial strategies, and what goals your company aims to achieve.
3. Invest in Branding
Shoppers often make purchasing decisions based more on emotions than product features. Therefore, investing in branding is vital. Achieving customer loyalty and creating a connection between them and the brand goes beyond the products themselves. The difference lies in how you execute your marketing strategies.
1. Push & Pull
Companies should apply push and pull sales and merchandising strategies to achieve market positioning and foster strong institutional relationships with distributors.
2. Merchandising and Visual Merchandising
This strategy involves making the product visually appealing to consumers. Its objective is to highlight the product through materials and displays that support visibility and generate increased attention.
Here, Visual Merchandising comes into play — a tactic used at the point of sale to display products in an attractive and strategic manner.
3. Promotions
These are essential actions within Trade Marketing strategies, as they motivate purchase decisions and generate high impact.
They can be aimed at both the end consumer and the distributor.
What is Shopper Marketing?
"According to a study by PPAI, promotional items have a significant impact on recipients:94% of consumers remember receiving a promotional gift in recent years, and 89% recall the brand associated with it."
Unlike trade marketing, shopper marketing is defined as a point-of-sale marketing strategy that takes into account the different types of shoppers that exist. Not all customers are the same, as people with different tastes and adversities enter a store. The secret of shopper marketing lies in an in-depth understanding of the shopper (buyer/customer), as well as the correct use of this information when designing point-of-sale marketing strategies. Shopper marketing is the marketing that takes place in the final stretch toward the purchase. It is the marketing that leads the shopper to buy one product from one shelf and not another.
Al hablar de Shopper Marketing, es importante diferenciar al Shopper del consumidor final, ya que un Shopper puede ser mujer y comprar un shampoo de mujer, al mismo tiempo comprar un desodorante de hombre para su esposo y leche en polvo para su bebé. El Shopper compra estos productos; sin embargo, no siempre es el consumidor final de ellos.
What are the main functions of Shopper Marketing?
“The best advertising is done by satisfied customers.” – Philip Kotler
Conclusiones:
Conclusions: Shopper Marketing studies and understands the different types of shoppers, their purchasing behaviors and habits, in order to define the elements to be implemented at the point of sale to generate stimuli and emotions that are related to the shopper's positive purchasing experience at the point of sale.
Trade Marketing is responsible for executing the point of sale strategy, satisfying both shoppers and retailers, according to the characteristics of the segment, the product portfolio, the distribution channels, highlighting the brand at the points of sale, in order to stimulate their purchase. Both areas are fundamental for a contemporary consumer products company. Because now, more than ever, the shopper knows the power they have over brands, demanding extraordinary situations for each product or service they purchase. It is necessary for both departments to be in constant communication, since they pursue the same goal: increasing the brand's sales. One of them analyzes the buyer (Shopper Marketing) and the other (Trade Marketing) negotiates and executes store by store. So that together they can create an in-store experience that persuades shoppers to purchase a product or service.
The important thing here is to remember that both are essential for perfect execution at the point of sale and together they have a symbiotic relationship with the sole purpose of increasing brand value. Use them with your brand and you'll see how they will increase your sales at the point of sale.
More on trade marketing.
