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Efficient Promotion is one of the four vital Efficient Consumer Response (ECR) Strategies and which provides the single largest potential savings to wholesalers. In a 1993 study by Kurt Salmon Assoc., Efficient Promotion was projected to provided nearly 40% of the total 10.8% savings that could be saved through ECR. However, several hurdles prevent the successful adoption of Efficient Promotion. Such obstacles include conflicting trade partner attitudes and the lack of available consumer takeaway data from which performance-based trade promotion spending can be determined.

A recent move by San Jose, CA-based Coast Distribution System Inc. to launch a line of private brands has given rise to a new controversy in the recreational vehicle industry. The decision was widely criticized as a deviation from the traditional two-step distribution method and a directly competitive move against its own customers. Coast Chmn. Thomas McGuire, however, justified the introduction of house brands as a transitional move in an increasingly dynamic market., The RV industry's traditional two-step distribution system seems to be gripped in an enormous dilemma. Just as the distributors overcome one problem, another one emerges. Indeed, OEM packaging of awnings, [...]

An analysis of retailer-vendor relationships in the automobile supplies industry is presented. Retailers and suppliers have been the object of conjectures especially when a retailer switches to another supplier or a supplier bypasses a distribution center and channels goods directly to stores. The relationship has become more overt, and both sides have become mutually cooperative. Both retailers are coping with the competitive retail business environment by increasing product awareness on a nationwide scale and establishing store identity., What is going on in the retailer/vendor relationship? Everyone in this industry wonders and whispers about the relationships between auto parts retailers and their vendors. Rumors abound. A major retailer [...]

Electrical equipment sales at home centers compete with wholesaler's sales, so it is necessary for these distributors to put such retail operations in perspective. Home center electrical sales only amount to 4.6% of the average store's sales, but this percentage translates into about $742 million per year. Home Depot is the largest home center chain with $7,148 million in sales per year. Although electrical parts are only one of about 13 product areas that home centers offer, wholesalers might increase their sales by entering niche markets, such as hardware stores have done.

At what appears to be the end of a long and painful recession, most firms are turning all of their thoughts and efforts toward a regeneration of sales volume. They [...]

To improve their international competitiveness, industrial marketers must develop more proactive marketing strategies. Such strategies must include services. Industrial marketers must develop their understanding of and sensitivity to customers' needs. To achieve this, they must understand that services need to be classified as presale and postsale, and decide which type of service is more important under what circumstances. Organizing and classifying services along the lines suggested in this article will give companies a competitive edge at almost no cost. A model is presented to demonstrate these ideas. (Reprinted by permission of the publisher.)

What characteristics distinguish high- versus low-performing distributors for new products? How can new product managers among manufacturers and distributors use such information for improving the effectiveness of their marketing strategies? This article answers these questions based on the results of an exploratory study of high- versus low-performing distributors that were included in the marketing channel strategy for a new product. One critical factor found to be associated with distributor performance level is the share of total business the new product represents for the distributor. The strategic implication is that gaining a substantial share of distributor commitment and resources to market a new product requires convincing evidence that the new product will provide substantial sales for the distributor. In addition, the new product sales level relative to total distributor sales may be more important than absolute dollar sales for achieving distributor commitment to market the new product. (Reprinted by permission of the publisher.)

When you get right down to it, the face of the soft drink industry may not be a human one after all. For all the good efforts of the people [...]

Manufacturers often use push strategies in combination with their sales force to help secure distributor support in the marketing of products and services. Recent literature indicates that distributors have some critical attitudes toward manufacturer-sponsored promotions. This study examines the attitudes of medical supply distributors toward sales promotions. The findings reveal that distributors have criticisms of manufacturer-sponsored promotions and that distributor attitudes differ with the size of the distributor. (Reprinted by permission of the publisher.)

Fluid power distributors offer more than components Today's successful fluid power distributors have the technical know-how to help you not only put together the best system for your dollar, but [...]

Designs That Sell Air tool manufacturers are finding that successful distributor marketing begins in the minds of engineers and ends in the user's hand. Whoever said that nothing's new under [...]

Advertising has lost its traditional position as the preeminent marketing tool to a combination of public relations, endorsement, and distribution methods. Research has revealed that many consumers make buying decisions based on peer group acceptance of a product, point-of-purchase marketing, and the recommendation of those whose opinions they respect. Consumers have become more suspicious and discerning in their purchasing behavior, and often avoid conventionally advertised products. Products being introduced can be promoted through purchased shelf space, distribution of samples, and coupons. Certain products are best marketed by distributors, such as pet food through veterinarians, and hair-care products through beauty salons. Positive public relations gained from sponsoring events and charities can have more credibility with consumers than advertising.

KITCHENWARE: OFTEN OVERLOOKED, ALWAYS NEEDED There's one product category that's too often overlooked, yet is used by every type of operation, and is profitable both for the distributor and the [...]

TABLETOP In selling dinnerware and flatware, always start at the top end of the quality spectrum. It's much easier to move down the scale than to try to move the [...]

As the end-user continues to drive margins down, one place distributors are finding relief is their warehouses--and those of their wholesaling partners. Through strategic partnerships with today's wholesalers and redistributors, [...]

For Bill Derry and his associates at Field Fastener Supply, a sluggish economy is no reason to slow momentum Businesses can grow in tough times, Derry says; it just may [...]

MARTIN BROS. Distributing focuses exclusively on one target: the customer. Everything that is considered, created or done by the broadliner is aimed at providing its operator customers and vendor partners, [...]

Creating a showroom involves more than dedicating space to pre-fabricated tool displays Do you think a trip to the toy store is all fun and games? Distributors considering creating a [...]

Industrial distributors can improve sales by hiring a sales manager whose main responsibility is to coach sales staffs, formulate strategies for creating new business and delegate daily operational issues to other staff members. Since this type of sales manager does not do any actual selling, he tends to be more strategic and has a wider perspective of what is needed to lead an effective sales team. Unfortunately, this type of sales management approach has not been widely adopted in the distribution industry., Sales managers who handle their companies' most lucrative accounts often have little time for coaching their sales teams or strategizing about future sales initiatives, and they leave their salespeople with [...]

A distributor's story Selling locks selling locks in today's marketplace requires a variety of knowledge and skills. Let's take a look at a day in the life of one hardware [...]

Industrial distributors can improve sales by providing a vast product line that will meet their existing customers' demands. Such products and services will lock a distributor with the clients. Distributors should also focus on offering new lines to their existing customers rather than prospecting for new accounts. Selling more to profitable clients lessens the need to find replacement customers, which is more costly and difficult. Furthermore, this will help current clients improve their profitability, thus making them less of a competitive threat., McDonalds has mastered the art of selling more to existing customers, and distributors need to do the same Jim Zechmann admits he's not interested in becoming a milkman. The dairy [...]

Electronic catalogs are marketing tools that feature product specifications prices and other information. Demand printing and other new technologies enable distributors to custom-design, high-quality catalogs ideal for sales presentations. Electronic catalogs are currently distributed through CD-ROM and the Internet which feature different updating requirements, response times and sales applications., Electronic catalogs are one of the hot concepts in distribution. In some cases, these are nothing more than an electronic version of a paper catalog. Some are not even that [...]

Welcome booklets should be concise and contain very basic information about a company. Useful booklets provide thoughtful answers to typical questions, including visiting hours, appointments and purchasing department personnel. The Principle Financial Group, Wellington Leisure Products Inc. and Baker Oil Tools produced award-winning booklets for a 1996 contest conducted by Purchasing magazine., The difference between the best and worst entries in this year's welcome booklet contest can be summed up in one word: 'attentiveness.' The very best welcome booklets paid very close [...]

It appears the Internet's explosive growth will turn electronic software distribution into a pervasive reality. That promise has distributors scratching their heads and wondering how to place their bets on […]

Master distributors are locked in an intense Internet-driven battle to give away one of their most precious assets: information. The winners of the battle could come to dominate the industry […]

The IBM PC Co.'s program to joint-manufacture PCs with master distributors/integrators has been so successful that it is ready to be extended to include full-line master distributors. If the three […]

Retail marketing and value-added services are continuing to drive beer sales. Customers are basing purchasing decisions on perceived value rather than brand preference or loyalty. Wholesalers should reorganize their sales structures, increase their retail performance and understand their customers at a local level before employing localized and retail marketing strategies., While brewers and beer wholesalers have talked about 'value-added benefits' for several years, few have done anything to make it a reality. We believe a large part of the responsibility [...]

Frigidaire executives and distributors of the manufacturer's Gibson white-goods brand will meet in late Apr 1995 to work out their differences. Frigidaire hopes to increase the brand's annual volume from $200 million to $300 million, but the distributors believe that they are being saddled with unreachable sales quotas. Gibson is the only remaining major-manufacturer white-goods brand to have a two-step distribution process., DUBLIN, Ohio - The people who make and sell the last two-step white-goods brand from a major manufacturer are getting together this week in Greenville, S.C., to decide Gibson's future. [...]

Sales personnel working between manufacturers and distributors should treat the latter as their customers. They should work closely with distributors to identify potential distribution problems as well new markets for their products. In selecting distributors, sales personnel should consider their ability to pay bills on time and their capability to absorb a large volume of products.

How can you get more business from that 80% of your customer base that currently accounts for only 20% of your volume? First, you have to get their attention. Then [...]

The chemical processing industry's high demand for industrial equipment and supplies can prove to be a lucrative business for industrial distributors. However, entry into the industrial distribution market is hindered by strict quality and environmental standards. To help industrial distributors cope with the problems associated with market entry, several key points ranging from quality control to value added support services are presented and discussed., Selling hose and accessories to the chemical processing industry calls for a perfect formula of quality, expertise and value-added service As the MRO buyer for a large chemical manufacturing company [...]

A funny thing happened to General Motors on the way to the bank. It lost $8 billion on its North American motor vehicle operations in one year - the most [...]

Some industrial distributors claim that catalogs can translate to as much as 20% sales growth. There are some reservations, however, about the costs of producing a catalog, especially during a recession. A customer is usually aware of less than 20% of his distributor's product lines and a catalog could provide this customer with a comprehensive knowledge of practically all of these available items. Catalogs can influence people to purchase more than what they actually need., Questioning the expense and cost effectiveness of a catalog for your business? Catalog costs and their effectiveness just might surprise you. What would you say if somebody offered you an [...]

Ohio Transmission and Pump Co (OTP) has always emphasized the importance of proper insider sales manners. Chmn Dave Derrow advises his salespeople to refrain from talking to customers in a negative tone. Derrow wants inside salespeople to focus on what the company can provide and not otherwise. Derrow's emphasis on insider sales has led him to create specialized training programs for his employees. OTP's dedication to insider sales was initially fostered by the high cost of outside sales calls., For 44 years, Dave Derrow has been an inside salesperson's strongest booster. And it's certainly paid off for his company, Ohio Transmission & Pump Co. Dave Derrow, chairman of Ohio [...]

Is your phone a profit center? Telemarketing experts tell ID that your telephone could be an outstanding source of untapped sales. Historically, the distribution industry has grown just because it [...]

Imagination is proving to be the only limit for wholesalers looking to non-traditional outlets to expand their confectionery business What do video rental stores, auto delearships, hardware stores, lumberyards and [...]

Finally, reps get some respect For years, independent industrial agents were second-class citizens. But that image is changing. Until a few years ago, independent industrial agents, or reps, were the [...]