In spite 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 is 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 in Telecom, FMCG, and Durables, which leaves us presuming why?

by Sanjiv Sethi

Brands have market shares disproportionate to ITP and TOMA. For example a brand had an ITP score of 90 percent and TOMA of 95 percent but was struggling with a market share of 25 percent. In nutshell huge AD spends amounting to crores was not getting converted in to revenues or market share, despite having a motivated and 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 is the biggest boon to boost, organize and garner larger market shares across categories in hypercompetitive 15 trillion dollar plus global retail industry and over 450 billion dollar Indian retail industry . It serves as a Ready reckoned for millions of sales professionals, marketers & CEOs thus, helping more than 7 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 15 trillion dollars plus retail industry anticipated to touch 21.8 trillion dollar in 2015 catering to over 7 billion people worldwide. Specifically in the case of over 450 billion dollar Indian retail industry ,TRM holds a special significance where organized retail is merely over 7 percent and 93 percent is mass / unorganized retail The total Indian retail industry contributes to 14 to 15 percent of its GDP and employs 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 522 billion dollars in 2012 and Indian market around 6 billion dollars, here is a tool — TRM —Trade Relationship Management which will 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 organization. Trade management is directly linked to higher revenues to the organization as a delighted trade will bring better customers for the organization and can reduce the sales and distribution expenses of the organization. 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 is not a technology or software, it is a breakthrough in management science, a complete process, a premier strategy must for all marketers and Ceo’s. This new management invention-TRM, tackles one of the biggest business issues of our time defending market shares in hyper competitive market scenarios globally. It is about full life cycle management of trade right from recruitment, communication, training, commerce and engagement.