MarketingProfs' Members Register for B2B Forum 2010 for just $695! (good until 11/30) »

Ask your question ... sign up today! It's FREE!
Strategy     
 
This question has been closed, and points have been awarded.
How To Effectively Manage A Distributor?
Posted By: harrywilliam.acosta* on 7/25/2005 1:59 AM (CST) 250 Points
Can you give me tips on how to effectively manage a distributor.

Posted by: NoStressXpress Accepted Answer
7/25/2005 8:10 AM (CST)
If the distributor is an independently owned and operated business then I would abandon the idea of "managing" the distributor. The more appropriate approach would be to figure out a way to "partner" with the distributor so that a healthy, supportive, and profitable "interdependency" is established. A good classical example are automobile dealerships. Notice that a lot of them carry and sell more than one brand of automobiles? I think that if the big automakers in Detroit were to really "manage" their distributors they would have several issues of different varieties on their hands.... all of them affecting the bottom line.

Distributors have to do what is best for them to remain profitable and survive. In my days as a marketing manager (industrial products) our sales force found it very difficult to set up an "exclusive" distributor that would market/sell only our product line. Instead we had to accept the fact that a distributor's loyalty cannot be bought and what we did instead was to make sure that our sales force and support departments worked closely with the distributor and its personnel to make it "easier" to market and sell our product lines versus than competitor product line the distributor will also stock. It is hard work but the rewards are both tangible and intangible. Once you get a distributor's sales force becoming disciples for your product line you effectively multiply your own sales effort at an intense level on a local area basis.

I hope this helps.
Conrad
 
Posted by: Papadoc (Steve)* Member Response
7/25/2005 8:55 AM (CST)
You give absolutely no information to answer this question properly. Put at least as much effort into asking the question as you expect in an answer.

Manage them to do what? Is this a person, a corporation, a franchise? Is the distributor at will or under contract? Is it an exclusive relationship? What is your proximity to the distributor? What's your position in the market? Is this a new relationship or an old one? What and why are you trying to manage?

It makes a huge difference if you are talking about a F500 company manufacturing exclusive products and selling $10 million a month worth of products to a nationwide distributor on the other side of the country with whom you've had a long standing relationship..... or..... you are an 278th generation soap and vitamins MLMer trying to manage your "business" relationship with cousin "Slippery Dog" Eddie.
 
Posted by: jacey.wan* Accepted Answer
7/27/2005 9:46 AM (CST)
Firstly, it is necessary to consider the driving force which brings the distributors and principals together.

Most of the time, disputes and misunderstandings arise due to lack of communication or ignorance.
Distributor often live in a competitive environment and some may suffer exceptional competition from other companies in their areas. There are often disputes about distributors' selling efforts and promotions when communications and expectations do not made clear.

Clearly, they want “distributors support” and if you shut up and listen, they will often tell you a lot more than you would need to know. They provide useful market insights and consumer buying trend, which will guide you tremendously in working out amicable solutions and programmes whenever problems occur. Also, remember to discuss problems with distributor in good time ( choose appropriately ) and unbiased way especially if it involved several distributors of the same products.

Some “distributors support” are :
1. Provide both the sales product training and showing how to approach and convert prospects.
2. Manipulate the performance of the distributors' sales people by offering them sales incentives.

However, if your distributor is unable or reluctant to answer questions that will indicate how they sell the products in the marketplace and what distinct advantages they offer over their competitors, look elsewhere for help in distributing your products.

Hope it helps
Jacey
 
Posted by: timo kruskopf Accepted Answer
8/5/2005 6:10 AM (CST)
You need to decide on your channel strategy and start to develop relationship accordingly. In this dialogue process you can drift between two extremes: to command and order or to attract and seduce. Seldom you have the market power to do the former, so start to develop partner program type of strategy.

Best first step is to ask the distributor. I always start with my customers a qualified interview process: go to most valuable distributors or gather them together if there is no competition between. An open 3 hour meeting where distributor can explain all his troubles and wants open your eyes more than any research or strategy book.

Next steps will follow automatically.

NOTE! Try to build a relationship also over your distributor to your end users: the more you know about them the less you're dependable on the polarised information distributor's typically provide.
 
Posted by: Wiglaf Accepted Answer
8/6/2005 12:13 PM (CST)
Try addressing the following issues of your distributor:

- What value do I provid that distributor?
- How can I incent that distributor to perform certain tasks on my behalf that bring mutual benefits?
- How can I capture a larger portion of that distribution throughput?
- How can I share risks in a mutually benefitial approach?
- What can I do for that distributor's business to change my relationship from being another supplier to being a business partner supplier?

Channel managment is about relationships, value, and risk sharing. Work on these three issues. Develop a personal relationship. Share the risks and value. Help them to help yourself.
 
Posted by: harrywilliam.acosta* Author Response
8/7/2005 9:20 PM (CST)
THANK YOU EVERYONE, I AM VERY NEW WITH MY POSITION AS DISTRIBUTOR EXECUTIVE. I LEARNED A LOT FROM YOUR RESPONSES. I WORK WITH THE PRINCIPAL AND CURRENTLY ASSIGNED TO ACHIEVE NUMERICAL OBJECTIVES THRU MANAGING AN EXCLUSIVE DISTRIBUTOR WITH BUSINESS AMOUNTING TO $5M PER WEEK.
 
Posted by: iabadie* Member Response
11/8/2005 9:30 AM (CST)
Hello all,
Our company is trying to start a distribution relationship in order to expand into international markets. Can anybody provide me with some tips on how to select the best diributor for our products? what kind of questions we need to aske a potential distributor to comsider him as the right distributor for us.
Thank you,
Ilan Abadie
 


Get more answers ... ReTweet this!

Would you like to post a response?
Welcome to Know-How Exchange!
This is a collaborative community. We welcome everyone's participation.
All you need to do is login. Enter your account info in the box above (top right).
Not a member? Not a problem. Register here (it's FREE and EASY).




Know-How Exchange powered by MarketingProfs


Sponsored Links

Buy a Link Now

Just Released ... Download Today!
Just Released ... Download Today!
Look inside
Included with Premium Membership
User Name:
Password:
Remember Me
Forgot your password?

Top 25 KHE Experts
(Strategy)
ASVP/ChrisB (39143)
Jay Hamilton-Roth (36484)
mgoodman (31658)
mbarber (28529)
Frank Hurtte (24822)
W.M.M.A. (24343)
telemoxie (24010)
CarolBlaha (20554)
wnelson (18695)
Peter (henna gaijin) (16342)
NuCoPro (16053)
michael (15775)
stevea (13066)
thinkmor (10820)
SteveByrneBranding (9826)
PhilGrisolia=Results (9649)
Puru Gupta (8760)
Deremiah *CPE (8318)
Wiglaf (8292)
SRyan ;] (7862)
darcy.moen (7712)
Pepper Blue (7080)
Gary Bloomer (6359)
Mikee (6119)
Michele (5978)
Recently Posted Marketing Jobs
Director of Marketing and Communications
Demand Generation Manager
Marketing/Advertising Faculty
Director of Marketing
Market Analyst
Sr. Field Marketing Manager - Business Intell.
Associate Vice President of Marketing and Corporat
Marketing Manager
[more jobs]

Join over 355,000 members ... SIGN UP!

My email address is and I'd like my password to be .

Already a member? Sign In!

My email address is , and my password is .


HACKER SAFE certified sites prevent over 99.9% of hacker crime.