|Converting Excess Stock into a Powerful Brand|
|Wednesday, 30 May 2007|
In the combative business environment we are in, new products are being launched simultaneously in every part of the world. Almost every company has products or services that seemed to have tremendous potential when they were conceived but failed to create any major impact in the market place. Some become obsolete or unfashionable by the time they hit the shelves and reach the consumer.
When new products are launched, brand building is crucial to connect the products with an idea in the consumers’ minds. It is more often than not a perception that is created and carefully nurtured, for example Volvo is associated with safety, Panadol with pain relief, Mercedes Benz for with prestige. Brand building is every marketer’s biggest challenge, to stretch the marketing dollar and maximize the exposure of their new brands in the market place.
Brand building is a long and expensive process and needs to deliver results at the end of the day. It is a monetary risk. The combination of trade finance and barter can be a powerful weapon in a company’s marketing arsenal, in providing the strategic advantage in solving marketing challenges. Barter is the process by which a manufacturer or provider of services can take unwanted or under utilized inventory and sell it to a trade exchange for trade credits.
Marketers can draw up a “Needs List” and use the trade credits earned to purchase the various tools for brand building, which they would have otherwise paid for in hard cash.
Brand Building Needs
Most companies’ marketing budget tend to focus on their target audience or core consumers. Trade Finance comes in to stretch the budget to reach out to potential consumers, locally or overseas, to extend distribution and exposure in geographic areas and market segments which have not been penetrated. This has become more important as an economical channel to expand overseas distribution without incurring addition cost in staffing and marketing support.
Aside from extending the reach and size of the marketing budget, barter can be used to finance brand building through non traditional media including out-of-home – car wraps, billboards, signs, and exposure on the internet. Barter can also play a large role in fostering identity and building sales for new brands, in providing incentives such as travel to reward sales staff for their achievements.
With many companies re-structuring themselves to compete in the global market place, barter plays a valuable role in building and maintaining brand image and worth. Once we fully grasp the fact that barter offers more bottom line value, we will realize its phenomenal power.
To enquire, please visit www.barterxchange.com or contact Danny Koh at:
BarterXchange (S) Pte Ltd