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Page 1: Channel Marketing Group - Thinking About Today Planning for Tomorrow - Sept 2015

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Thinking About TodayPlanning for Tomorrow

Ideas that Deliver Results

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The MarketQuestioning OurselvesThinking About TomorrowBecoming a Gazelle

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1. Slow / Minimal Growth, Nationally◦ Nationally … +/- 2% … New England Originally 4.3%◦ Major Markets Experiencing Growth◦ Correlation to Urban Areas, Contractor-Focused, LED Drivers◦ Larger Companies Aggregating Business

2. Margins Eroding … Need for Operational Excellence 3. Better Marketing By More◦ Who “owns” the customer?◦ Manufacturers Funding Less

Need for Profitability

Need for Their Marketing

Redirecting Funds … Coop Going AwayPay for plan and performance

◦ Distributors Need to Learn “Budgeting” for Marketing

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4. Different Sales Models◦ Inside Sales Being Valued More◦ 2 Tier Models◦ Compensation Structure Reviews

5. eCommerce Investments … Limited eMarketing … Limited Adoption

◦ Price Consistency & Inventory Accuracy Issues Accelerating◦ eConnectivity with Contractors◦ Think Retail

6. Alternative Channels◦ Anixter / Grainger / Fastenal / McMaster-Carr / e / ?◦ We’re Only One

7. Average Age Declining◦ College Recruiting◦ Technological Experience◦ Old Habits Dying Hard

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DISC ReportJuly 2015

Patchwork EconomyLarger Contractors PrevailRe-Urbanization

Uneven market growthUrban Areas Growing

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FocusRevenueLong Term ObjectiveCustomer / Product-Orientation

Goal Drives Direction, Strategy & Initiatives

Consider◦ Size for Size’s Sake? … Need Market Share◦ Size for Valuation? … Allows for Diversification◦ Size for Profitability? … Operational Excellence & Focus

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Niches◦ Profitable or Distractions◦ Committed or Dabbling?◦ Goals? Annual Expectations?◦ Planning for Success or Enabling for Existence?

Need◦ P&Ls◦ Plans

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Rising Tides =Market Expectations

Ride the Wave = Create Demand

On Shore =Consider Adjacencies

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Smart HomeSmart OfficeSmart IndustrialLED Seller or Order TakerTurn-Key Solutions / Marketplace Knowledge Source

Seek New Business◦ Demand Creator◦ New Revenue Models

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Differentiating oneself is important

BUT …

Need to know what is

important to “the” customer

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Expectations Drive Service◦ Customer◦ Management◦ Self

“People Respect What You Inspect”

Metric Management Sets Expectations

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“Right Sales Force”Integrative & Segmented Sales ApproachCommission ≠ Aggressive Sales forceProcess Trumps … Who Steers the Ship?

Different StrategiesTo

Different Customer Bases

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Salesperson May Only Be an Element of Tomorrow’s SellingExperience = Relationship

Consider These Relationships:

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Is Today’s Branch Centric Sales Model TheSolution for Tomorrow?

Consider◦ Remote Outside Sales Offices

Corporate Environment? Homes?

◦ Distributed Inside Sales?◦ Multi-Supplier … Complementary or Competitor!

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But Whom’s?

◦ Who “Owns” the Customer?

◦ Who is the Customer”?

Follow the Money!

Are We In The Decision-Making Channel?

• The owner • The influencer• The overseer• The installer• The doer

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If money wasn’t a consideration …What would you do?

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Be THE Gazelle


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