Know-How Exchange : Advertising/PR

What you are trying to do is "pull through" the sales. There are many companies that do this-- I did as a rep in another industry. Supporting your dealers, spending time helping them make sales is a win/win. The best way to make a friend is to make them $$.

What didnt your boss like about the spiff? A spiff alone probably won't do much for your sales. it must be part of a bigger plan.

If your boss wants you to get the dealer's customers asking for the product, then you marketing must be to those customers. How about a product blitz to the end users, featuring something new, something at a new price point?

As a rep, I would spend a good portion of my time working with end users. I didn't make a sale, but I pulled it through the dealer. Multiple dealers bid on the projects, making me multiple dealers-- as some were dealers that never heard of me. But once they heard a customer ask for the product by name..

Think of the many products sold this way. I had an interesting conversation with a Frito Regional, telling me how he is evaluated -- and it's his job and those under him-- to increase the need for Fritos. And they have no control over marketing, just working with someone else's crayons. But it's all the same. Showing dealers how to make money.

Dear hannah1987,

For this to work your ideas need to focus solidly on values and benefits for customers.

This works in one of four ways:

1. Bulk purchase discounts.

Value here comes in the guise of multiple buys from end users at reduced prices (buy three, get one free, buy six, get two free) with single items of the same range priced higher per item than their bulk buy siblings:

Single item = $39.95 (plus shipping)

Vs

Buy two at $29.95 each, get one free, and free shipping.

(Even allowing $5.95 for shipping this sale generates a $53.95
sale over a $30.95 sale, a difference, if my maths are correct,
of 74 percent).

The second deal is the better deal for the consumer AND the better deal for the dealer and the manufacturer, especially if the dealer is on a percentage commission per sale, which they probably ought to be anyway.

2. Complementary product up-sells.

This almost always takes place at or very close to the point of sale. It's the routine of "And would you like to supersize that for an extra $1.99?" or "Can I show you our menu of exclusive tempting, fat-free desserts, hand made by our in house pastry chef?"

Online book sellers are using this more these days, which explains why we're seeing "Buyers of this product also bought XYZ product" or, "Need extra [desired outcome]? You might also like [or "X percentage of our customers also bought"] ABC supplement at 25 percent off normal retail price").

Here, social proof (other people buying the same item) adds credibility and the significantly reduced price in comparison to the higher priced item already in the shopping cart—or that's already been rung through the register—can do a great deal to increase sales while the buyer is still in buying mode—particularly if they're there in the store, credit card in hand, at the register, with a line
of people behind them.

And discounts here must be big enough to create the thought of "Hey' I'm already buying $195 dollars. What difference is an extra $29.25 going to make?" Answer: a 15 percent increase in revenue.

Now of course, not all customers will take advantage of this offer. But an average of 20 to 30 percent will. Make this deal too good
to pass on and you increase your profit potential per accepting customer.

3. Bundled products and loss leaders.

Similar to the first item, this relies on similar items with high perceived value that the seller offers as freebies, or as "thank you" gifts for trying something new (at full price).

4. Unadvertised bonus specials.

This works by offering previously undisclosed items either at the point of sale at a discounted rate, or AFTER the purchase in an e-mail or direct mail follow up.

Again, heavy discounts from regular prices help to induce sales and the more the thing begin offered connects with the thing previously bought, or with some connected element or collected piece of information, the more the prospect is likely to take notice and take action.

All of these ideas work on the principle of it's easier to sell more
to an existing customer than it is to sell less to a new customer. And the more free or high perceived value/ low-priced items the customer is offered, the lower your returns and refund rate becomes.

Why? Because you offer higher and higher perception in terms of value, and because you employ increasing levels of reciprocity. Both of which increase customer retention rates and loyalty levels.

So, always,—ALWAYS—put the customer's "value gained" needs, benefits, and aspirations BEFORE your "product sold per quarter" targets and you'll build market share and increase profits.

Do it the other way around and you'll find yourself in a hole that it becomes increasingly harder to climb out of.

Use commission incentives for dealers but it must be made clear to dealers that they must NOT carry out any kind of hard sell. The overall message of value for the customer MUST be controlled and monitored by head office and dealers must be made aware that any infractions of this policy will result in them being removed from the sales chain.

I hope this helps. Good luck to you.

Gary Bloomer
Wilmington, DE, USA
Follow me on www.twitter.com @Gary Bloomer

you can also customize your product, show your dealer that you care and you appreciate theirs opinion.
try to make them loyal by using some discount cards, free shipments bonus. try also to facilitate the payment method and boring paper works, every month make a special day to celebrate something.

participate on seminars and conference, offer them free promotional tools.

the best way is to put yourself in their shoes and ask what kind of service can make you happy.

a.

First, you didn't say what country you are in, so what we all recommend may or may not be legal in your country. Promotion of pharmaceutic products are very regulated, so not everything is legal in each country.

In the States, it is very common to see advertisements aimed at the end users talking about the benefits of the drugs, and ending with the line saying ask your doctor about the drug. This is the pull strategy that Carol said. You get the customer to ask for the product directly from the doctor.

What is done less now (laws have changed)m, but used to be very popular, was to give doctors incentives to push the product on their customers. Give them expensive dinners, trips, give away products (pens, etc.), etc. The hope is to get them to prescribe your drug over a competitor's drug.

Give them business building tools for free (i.e. free web conferencing).

Are the products that your company produces revolutionary or evolutionary? If you've got something that leapfrogs the competition, and you've got lots of "social proof" (people who have benefited with few side effects), then that's a strong way to appeal to your target audience. If it's evolutionary, then you need to position yourself as not just slightly better than the competition, but clearly better than (you need to give strong reason to switch).

Doctors can only suggest products that they know of. They are constantly bombarded by companies pitching the latest drug, treatment, or product. Carol's given you some strong advice about creating pull, but you need to provide independently verified information to the experts in the various sales communities to inform them about your products (in a realistic comparison to your competition).

First lets see which ballpark you are playing in...

"Dealers" makes me think you are targeting bulk distribution companies like McKesson or the like. Is this the case?

If not, the what is the target audience of "dealers"?

If this is BtoC knowing the general purpose or benefit of the drug helps (health and beauty, antibiotic, beta-blocker, etc)?

My next question would be what type of drug is this: schedule, prescription, otc? (defines rules and regs on what can be done from a marketing perspective)

Hi,

1. Dealer Scheme,

Buy 1 Dozen & get 10% of on your next 1 Dozen

2. Motivational Tour,

Once they compelte their quarter target, take they for motivational tour, if your budget allows, may be to Bangkok. They will enjoy & be tahnkfull to your company for lifetime.

Swap.