I can’t remember how many times I’ve heard this from friends thinking of entering the world of retailing. Many would-be entrepreneurs set their sights on the retail business because they think that the industry is very easy to run.

More consumer goods manufacturers are shifting from a geographical based sales structure to one that is channel-focused.

“Have you had any experiences in running your own business?”

“We’re spending millions on trade deals and yet our sales figures even show a net decline!” This is a familiar comment heard in the Fast Moving Consumer Goods industry wherein cutthroat market competition necessitate constant deals to the trade with often disastrous results.”

All of us at one time have come across a stereotypical Used Car Salesman: fast-talking, hustling, price-diving, and ready to do anything to sell you that broken down, heap of junk, excuse for a car.

How many times have we seen a great ad on TV of a wonderful new product that gets us all worked up and raring to rush to the shelves of our local supermarket, only to find it, disappointingly, nowhere in sight?

Sixteen years ago I used to work as a sales executive for one of the largest and most dynamic multinational consumer goods manufacturers in the country. When push came to shove and the sales numbers had to be delivered, one of the most effective tools in my arsenal to convince my accounts to carry additional inventory was a big smile and a big chocolate cake! I’m not kidding. Times were simpler then and good rapport with your accounts would take you a long way.

In today’s highly dynamic and sophisticated trade environment, merely having a sales force is no longer enough. Having only sales representatives, who build relationships with their accounts and ensure purchase orders are picked up, is a surefire way to guarantee your company’s deterioration over the next couple of years.

As the trade becomes more and more sophisticated, the role of Trade Marketing moves from being one of service to that of advisory, planning and, ultimately, strategy, which creates great impact on all company decisions.

A number of manufacturers faced with reduced consumer demand are asking themselves the tough question: Is it time to cut the sales headcount?