Selling successfully through a distribution channel means more and more cooperation with that same distribution channel. Today’s open economy brings a number of trends which challenge Brands to obtain and maintain distribution channel loyalty. Traditional Channel Marketing or Trade Marketing, which is about selling products and services through channels with the associated promotional support, requires an new dimension, namely ‘Distributed Marketing’. The essence is the Brand Manufacturer (or Importer or Wholesale) supporting and facilitating local marketing of its Distributor (or Retailer), focused on the needs of the end user. Timing and message are specific to the local distributor and end-user, in contrast to the traditional B2B product marketing campaigns and promotional material from the Brand Manufacturer.
Trends
End users, both businesses and consumers, are well informed about the available offers in the market. The Internet has removed information frontiers and potential buyers can inquire about services and products worldwide. This phenomenon alone provides the necessary pressure for many industries on prices and margins.
It is also easy for goods to travel all over the world thus creating a growing variety in offer of products and services, also in local markets. The emergence of products from countries such as China and (ICT) services from India talk hard facts, as is the growing global infrastructure for parcel shipping.
The pressure on the value chain is increasing and requires stronger cooperation between the Brand Manufacturer and local Distributor to gain and retain (end-use) customers.
Distributed Marketing…
The Brand Manufacturer who sells through a distribution channel, is thus bound for his growth to the success of that distribution channel. The Distributor needs support to generate traffic in his outlet. This requires a balance between winning new customers (Leads) and keeping existing customers (Loyalty).
The Brand Manufacturer can deploy his marketing support through an online Marketing Portals with localized marketing content, campaigns and materials. The Distributor can modify the brand and campaign material to his local wishes and requirements, whilst the Brand Manufacturer maintains brand consistency.
The marketing content is designed for end-use. The Brand Manufacturer needs to understand the buying motifs of end users with the Distributor. This often requires Brand Manufacturers to think beyond their brand itself when Distributors/Retailers carry multiple brands. Marketing content for a Distributor for local end-users will be a wider marketing proposition than just that one brand. It is difficult for traditional product managers to see their brand as subordinate to the Distributors marketing proposition.
So how does such (Distributed) Marketing Portal work?
…for the Distributor
The Distributor can choose from a variety of marketing support. Content, campaigns and material are developed centrally on relevant themes for end users. This concerns both marketing campaigns for acquiring new customers (Lead Generation) as well as those for retaining existing customers (Loyalty Programs).
As the Distributor is more autonomous and has a stronger identity locally, individualization of the marketing message is a precondition for success. Variable Data Publishing techniques enable variable elements (text, images, colours, etc.) in marketing content to allow localization of marketing content for local markets.
Turnaround time is reduced for local marketing campaigns. Not only has the creative process already taken place, also required facilities for campaign selection and production are in place. The average turnaround time of a direct marketing campaign for a local Distributor is reduced from several weeks to only a few days.
Localization is not only on content, but also in time. The Distributor is in control of when and which campaign in his local market is needed. By using digital techniques campaigns can be triggered by individual events and executed as a 1-on-1 dialogue with end users. It is now feasible for local retailers to run Lead Generation and Loyalty campaigns by using the marketing operations infrastructure of the Marketing Portal. The times where a local retailer spends a lot of time and money setting up a direct mail campaign with a large circulation to the entire target audience, are over. A Distributor can now run localized campaigns, in his own timing, and manage his capacity for effective follow-up.
The financial strength, market intelligence and available marketing automation, enable a Brand Manufacturer to translate his economies of scale into upgraded, localized marketing. Distributed Marketing delivers sophisticated local marketing, which has long not been financially viable for local Distributors individually.
…for the Brand Manufacturer
Increased marketing activity in the distribution channel, and more consistency in marketing communications, will make an important contribution to Brand identity, Brand awareness, and, ultimately, Brand preference with end users.
Variable Data Publishing enables variables elements (text, images, colours, etc.) in marketing campaigns for localization and personalization which maximizes local relevance, and safeguards brand identity.
The high level of self-service in a Marketing Portal, will relieve the corporate marketing team from many operational and recurring tasks. The Distributor has 24/7 access to customized marketing content, materials and campaigns, and the Marketing Supply Chain is organized and automated.
The Brand Manufacturer has an overview of marketing activities in the distribution network and allows benchmarking for effectiveness and ROI. By benchmarking, best practices can be identified with which local marketing tactics, timing and content can be optimized and response increased.
Linked to a marketing database, better insight into customer and prospect profiles can be achieved, which can be used to set campaigns more targeted and accurate to further increase ROI and accountability. Enrichment of the customer database is playful, certainly with the use of cross media campaigns.
And probably the biggest advantage for a Brand Manufacturer is the continuous availability of marketing programs with short turnaround times. This creates continuous marketing activity in the distribution channel. Distributors will be running better planned, more targeted and relevant marketing campaigns, scheduled in advance over a longer period of time.
Conclusion
Distributed Marketing contributes to a better marketing ROI in the distribution channel.
The speed and agility of local marketing increases as the blueprint of the marketing content, campaigns and materials has already been made and the Marketing Supply Chain execution is automated.
Marketing investment for a Distributor is more effective as in investment in marketing content is shared across the distribution channel; The wheel is only invented once.
Distributed Marketing enables a Brand Manufacturer to support his local Distributors to grow the customers base, increase average customer value and thus to achieve profitable sales growth.
