Strategies for Distributor Alignment and Education PPT


This PPT slide, part of the 133-slide Pricing Strategy Workshop PowerPoint presentation, outlines key challenges and corresponding tactics for enabling distributors to achieve desired sales volumes. It identifies 3 primary challenges faced by manufacturers when working with distributors. The first challenge is aligning distributor goals with those of the manufacturer. The slide suggests that various tactics can be employed, such as offering higher margins or promotions for products that are underperforming. However, it cautions against incentivizing poor sales performance, indicating a need for a balanced approach.

The second challenge focuses on accessing information within the value chain. It emphasizes the difficulty manufacturers face when they lack direct access to customer data, which is crucial for understanding customer behaviors and values. The slide recommends instituting processes and utilizing IT tools to gather valuable information. Engaging with end-consumers and distributors through interviews and focus groups is highlighted as a method to improve information flow and ultimately enhance product delivery.

The third challenge is educating distributors about the value proposition of products so they can effectively communicate this to customers. One suggested tactic is to train distributor sales teams on the product's benefits, ensuring they are well-equipped to convey its value to end-users.

The degree of applicability for each tactic is visually represented, indicating how relevant these strategies are to different steps in the pricing process. This structured approach provides a clear framework for manufacturers looking to optimize their distributor relationships and drive sales performance.




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