As manufacturers continue to download new marketing responsibilities to independent manufacturers' reps, the juggling act reps perform becomes more complex. An article in next month's issue of Electrical Wholesaling magazine focuses on this challenge. Many reps will readily admit they don't always do a great job marketing their vendors' products. But they know effective marketing has become a core competency they must master.
When he considers the effectiveness of some of the more popular rep marketing efforts, Henry Bergson, president, National Electrical Manufacturers Representatives Association (NEMRA), Tarrytown, N.Y., said reps must prove through their performance and marketing efforts that they are the value-added providers in the marketplace.
“The lines the rep carries can come and go, but it's up to the rep to know the territory, and own the customer,” said Bergson. “There is real value in the rep performing as an effective marketer. But to do so, he must constantly ask himself, ‘Am I being a true marketer, or just a salesman? Am I implementing my agency's marketing program or the manufacturer's program? Am I promoting myself as the solution provider to customers?’”
Bergson said reps without comprehensive marketing programs are making a mistake. “At the end of the day, a well thought-out marketing program can be one of the most rewarding steps a rep can take. Reps following that course can enjoy a much better return on investment than others efforts provide.”
Reps can get so preoccupied with the many responsibilities that come with running smaller companies that they tend not to have the time for marketing, said Gene Biben, principal, Joseph E. Biben Sales Corp., Philadelphia. “We anticipate our manufacturers do the marketing. We perform fairly well as a marketing company, but we need to continue to improve. Our approach is that we'll continue to assume the manufacturer is not doing the marketing. We'll take on that responsibility. If I'm wrong and the manufacturer is already doing a good job — that's fine. There's no harm.”
Biben Sales' marketing activities include communications with customers via e-mail, direct mail, telemarketing and regular contact by inside sales staff and the creation, maintenance and use of a comprehensive database of distributors and end users.
Byron Brewer, chairman, Northeast Marketing Group LLC, Wallingford, Conn., said marketing skills don't “bubble up to the top” with reps because they are “constantly in the middle of fire drills with manufacturers.”
“We're putting patches on the big tires we all operate with,” said Brewer. “We don't have the luxury of being able to look at the total concept of the agency's marketing efforts. It's a little like flying over at 25,000 feet and not being able to see all that has to be done. As a result, much of what reps do becomes more of a knee-jerk activity. We're pulled in too many directions.”
Bob Benton, R/B Sales Corp., Marion, Iowa, said a major reason reps aren't always on top of the marketing game is because they're too turned on to the sale. “Getting the order and running their business remain priorities,” he said. “As a result, they often don't think in terms of marketing their firms to the industry.”
While not an electrical rep, George Hayward, president, United Sales Associates, (USA), Cincinnati, agreed relatively few reps are born marketers who enjoy mapping out a marketing strategy.
“I view what we do this way: Selling is what we do for our principals. Marketing is what we do for our customers. And the marketing I refer to is a combination of efforts. It's not just one thing, it's a combination of everything we do.”
John Roth Jr., principal, Roth-Mooney Electrical Agency, Indianapolis, Ind., has a dedicated full-time marketing position. He believes his rep firm is one of the few agencies with a vice president of marketing.
“That we have devoted a company position to marketing is hardly a luxury. It's more of a necessity in that we do a great deal on our own. At the same time, we need someone in place to manage and coordinate all the manufacturers' programs. Manufacturers make so much available to our mutual customers. But nothing will be effective unless it's managed properly.”
Mooney adds that the coordination of programs aimed at national chains, buying groups and large customers is one of the biggest challenges facing the rep today.
Doug Carlson, president, C&O Electric Sales Co., Overland Park, Kan., said reps must use local market knowledge to fine-tune manufacturers' marketing programs.
“The rep is the one who knows the customers best. Manufacturers' marketing efforts are geared to reach 1,500 to 2,000 people. When reps undertake an effort, we try to reach 85 to 90 people. We know who they are, what their needs are and how best to communicate with them.”
One Canadian rep said many reps don't spend enough time marketing to end users. “Too many reps get carried away with their efforts at the distributor level and in doing things that don't bring value,” said Chuck Cartmill, C.S.A. Enterprises Ltd., Halifax, Nova Scotia. “Most principals want us to create demand, but their programs drive you to the distributor. They aren't geared to creating demand among customers. It's critical the rep recognizes what manufacturers want the rep to do and what they need the rep to do can be two different things.”
His agency philosophy is to “sell through distribution, not to distribution,” and that his company's marketing efforts are geared toward developing demand among end-user customers. “That's where we spend our time,” he said. “We'll work with distributors on counter days and other activities, but our goal is to take it right to the customer.”
Kurt Nelson, principal, Nelson and Associates, Sante Fe Springs, Calif., said a few select reps in every market area are what he would call good marketers.
Reps should never feel they are alone in building their marketing efforts, he said, because there's “an abundance of wisdom and counseling available from rep peers and even business owners from other industries.” But as with so many things in business, the simplest marketing efforts can sometimes pay the fastest dividends. Nelson said his company's marketing efforts begin when customers phone the agency. “We get at least five compliments a week regarding the way our receptionist answers the phone and treats callers,” he said.