The most common situation is one in which the client has slow moving and/or excess inventory or capacity and would like to convert this inventory to cash. However, market conditions for the merchandise are too distressed and the client is confronted with a write-down or sale at a loss impacting their P&L.
In a second common situation, a client wants to generate additional advertising to support current or new business activity, or to meet competitive pressures.
A third situation is one where a client has strong distribution and market share but only in a selected region and would like to expand into areas not presently covered, while minimizing incremental marketing costs.
The fourth situation is when BMC simply acts as a buying service, purchasing media for clients at cost efficiencies not generally obtained by the company’s normal resources.
In the fifth and final situation clients use their Media Trade Credits (MTC) for charitable or socially responsible causes they support.