As the market is more competitive than ever, marketing strategies and sales alone are not enough to achieve the company’s desired results. Thus, trade and “market execution” have become a very powerful weapon for organizations.
“Market execution” can be defined as all of the company’s actions the point of sales:
Presence of product, considering the right place and exhibition
Product price positioning
Placement of merchandising material
Extra promotional spaces and product or brand exhibition can also be considered as execution actions
Market execution is usually the responsibility of the account manager and/or POS promoter.
You must align demands and expectations of the entire company and also ensure they are aligned with the current company’s market position. Therefore, it will be possible to migrate to a Marketplace execution model or develop what is already in place.
Considering the different activities related to market execution, it is possible to classify companies according to their stage of maturity:
Basic: product presence in store and Consumer Price positioning
Intermediate: Share of shelf in the category and Communication (promotion, price, presence)
Advanced: Extra promotional space in the POS and Temporary Promotion
Within some organizations, it is easy to find the desire to reach the advanced execution level without first having established a consistent performance in the basic or intermediate level. There is no question that a temporary promotion can have a major impact on share gains and increase sales volume. But, what is the purpose of a temporary promotion if products are not available in the store or consumers do not have a reference price of the product?
Often, we find several departments of the company directing their efforts towards different goals. For example, sales team may be concerned with increasing the inventory of a client and negotiates high volumes at low prices. On the other hand, Marketing is now using all of its resources to correctly position Consumer Price. In the end, none of the teams accomplish what they set out to do – all they really managed to do was waste time, energy and resources.
We believe internal alignment across the organization is fundamental to direct all of the available efforts, tools and resources towards the same goal. For example, if the goal right now is in-store presence and correct positioning of the Consumer Price, this indicator should be reflected in all possible places – sales team variable compensation, commercial policies, set indicators to monitor promoters, the bonus of executives, in addition to directing the investment from all areas. The result: maximization of market investments. After the ‘basic’ step has been overcome, the entire organization should target their efforts in the next step – as a united front.
By ensuring the correct understanding of the organization’s present situation, aligning all involved and properly directing efforts and resources, your company can focus on the difficult activity to ensure implementation in the market and achieve a great result of healthy sales.
Contact Intelectas to learn more about aligning your company's efforts to maximize market execution.