Inspite of motivated Employees , and Highest quality of CRM Practices being Exercised , a Brand having Highest scores on ITP-Intention to purchase and TOMA-Top of Mind awareness, (which are accepted measures of marketing and indicators to prospective market shares) was struggling to defend its market shares , We can today ,see many such examples in Global and Indian Scenarios especially Telecom , FMCG, Durables etc , it leaves us presuming why?
Trade Relationship Management is a mantra to build better trade. It help Retailers and Trade survive extreme gentrification. Here is how it works....
Brands have market shares disproportionate to ITP and TOMA . Eg a Brand had an ITP score of 90 per cent and TOMA of 95 per cent but was struggling with a market share of 25 per cent,In nutshell huge AD spends amounting to crores was not getting converted in to revenues or market share, Inspite of very able motivated engaged workforce and CRM being applied across all transactions.
In spite of ERM-Employee Relationship Management and CRM-Customer Relationship Management, Companies are losing Market Share and edge to competition hence in order to stay competitive and relevant , It is pertinent for businesses to incorporate TRM -TRADE RELATIONSHIP MANAGEMENT in business strategies.
TRM -TRADE RELATIONSHIP MANAGEMENT is the biggest boon to boost, organise and garner larger market shares across categories in hypercompetitive US$ 15 trillion plus Global Retail Industry and over US$ 450 billion Indian Retail Industry . It serves as a Ready Reckoner for millions of sales professionals , Marketers & CEO’s thus, helping more than seven billion customers feel satisfied.
Invention of TRM -TRADE RELATIONSHIP MANAGEMENT, especially at a time, when worldwide the retail industry is witnessing it’s all time low sales growth is the biggest boon for Global US$ 15 trillion plus retail Industry anticipated to touch US$ 21.8 trillion in 2015 catering to over seven billion people worldwide.
Specifically in the case of over US$ 450 billion Indian Retail Industry ,TRM holds a special significance where organised retail is merely over seven per cent and 93 per cent is Mass / Unorganised Retail The total Indian retail Industry contributes to 14 to 15 per cent of its GDP and employes over 50 million people.
Over 14 million outlets operate in the country; India has about 11 shop outlets for every 1000 people. With the second largest population in the world, a growing middle class, and the country set to be the epicenter of Consumption and Retailers. India today, is one of the top five retail markets in the world by economic value and probably highest in terms of Gross Consumption.
Global advertising market is estimated to reach over US$522 billion in 2012 and Indian market around $6 billion, here is a tool - TRM -TRADE RELATIONSHIP MANAGEMENT which shall help Marketers and CEO’s convert the spends in to higher market shares and just not ITP and TOMA .
Like Gallup measures Employee Engagement and there are enough tools for ERM and CRM too, TRM -TRADE RELATIONSHIP MANAGEMENT is a perfect science which Managers can use for Trade Relationships and enhance Market shares.
CRM-Customer Relationship Management, CRM is defined as the practical application of Relationship Management (RM) theory, integrating technology and business practices in order to identify, accept and build appropriate mutually beneficial relationships with customers to maximize value for each party (cf. Bose, 2002; Gummesson, 2004).Supply Chain management and ERP-Enterprise resource planning software etc are behind us as neither of these systems can handle the complex and encompassing relationship between Trade Partners/Retailers. Variables like prices, incentives, discounts, adjustment in invoices, attending to the customers through help desk etc presents a daunting task before the sellers. We have to look for an alternative.
Trade is the most pivotal Link between the Employee and the consumer The product from the organization flows to the final consumers through multiple channels like direct marketing, telemarketing, multi-level marketing, trade channel etc.
Businesses are built on relationships. As relationships become complex and collaboration is required decision system must be able to recognize and process this complexity efficiently. Customer Relationship Management, Supply Chain management, and ERP are behind us as neither of these systems can handle the complex and encompassing relationship between Trade Partners/Retailers. Variables like prices, incentives, discounts, adjustment in invoices, attending to the customers through help desk etc presents a daunting task before the sellers. We have to look for an alternative. It is presumed that Trade Relationship Management can bring about a perfect solution.
Trade plays very critical role in determining the market share of the organisation. Trade Management is directly linked to higher revenues to the organisation as a delighted trade will bring better customers for the organisation and can reduce the sales and distribution expenses of the organisation. In other words, it is the abilities and quality of the trade to produce results as well as their willingness to provide high-quality service and form relationships that will differentiate thee companies.
TRM-TRADE RELATIONSHIP MANAGEMENT
All the marketers and Ceo’s who significantly want to Increase their market share, enter new markets, boost sales performances, build relationships with Retailers, generate references or just generate higher revenues in a shorter amount of time-Understanding and Implementing TRM is just what their business needs to get it to the next level.
TRM-TRADE RELATIONSHIP MANAGEMENT is not a technology or a software , it’s a breakthrough in Management science , a Complete Process, a premier strategy must for all Marketers and Ceo’s, which shall contribute immensely boost, organise and garner larger Market shares in US$ 15 trillion plus Global Retail Industry over US$ 450 billion Indian Retail Industry across categories.
By understanding and Practicising TRM-TRADE RELATIONSHIP MANAGEMENT the companies can sure shot Double, triple and even quadruple their Market shares in a hypercompetitive market place .
The author, Dr. Sanjiv Sethi is the only Indian credited to have invented TRM™ -Trade Relationship Management™, the most relevant Management Science, which will lead to maintain the consistency of market share with Top Of mind Recall and ITP is a young dynamic, Successful and Professional Marketing & Management Guru of International acclaim.
Dr Sanjiv Sethi, has been on the board ,Core Committees and is Advisor to several Indian and international Business, Government and regulatory Industry bodies such as CII, FICCI, IIT, AIMA, AICTE, IACC , ABS, IAYP to name a few.
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