---
title: "How Distributors Execute the Three Core Tasks: Success or Failure Hinges on Them"
description: "As a link in the product circulation chain and an independent legal entity, distributors have broad operational and management concerns. This article focuses on three core tasks in marketing: channel management, team management, and manufacturer-distributor relationship management, offering practical guidance for distributors. Channel operations are centered on standardization, team building on enabling employees to do the right things, and manufacturer cooperation on leveraging strengths for win-win outcomes."
author: "王秀峰"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-08-17"
language: "en"
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# How Distributors Execute the Three Core Tasks: Success or Failure Hinges on Them

> As a link in the product circulation chain and an independent legal entity, distributors have broad operational and management concerns. This article focuses on three core tasks in marketing: channel management, team management, and manufacturer-distributor relationship management, offering practical guidance for distributors. Channel operations are centered on standardization, team building on enabling employees to do the right things, and manufacturer cooperation on leveraging strengths for win-win outcomes.

As a link in the product circulation chain and an independent legal entity, distributors have broad operational and management concerns. This article focuses on three core tasks in marketing: channel management, team management, and manufacturer-distributor relationship management, offering practical guidance for distributors.

**Channel Operations: The Core Lies in Standardization**

Channels are the core resource for distributors. If a distributor loses its downstream channels, it loses the foundation for cooperation with manufacturers. Distributors might say they have been doing this work for years, even decades, but why do some customers do well while others are in a mess, especially during the industry adjustment period in recent years? The biggest gap lies in whether operations are standardized. How to standardize channel operations? Consider the following points.

**Standardized Regional Planning**

Regional layout is generally defined by the manufacturer, but distributors should also play a crucial role in regional planning. Many companies, in the early stages of market development, may not clearly define the sales area for distributors or may not understand administrative divisions well. As the market develops, overlapping regions can lead to cross-regional selling and other issues. Therefore, when planning regions, distributors should clarify and discuss with the manufacturer, and specify details in the contract to avoid ambiguity.

**Standardized Channel Division**

Standardized channel division means assigning dedicated personnel to operate different channels. However, for smaller distributors, considering personnel and delivery costs, it may be difficult to achieve such standardization, and a salesperson might cover multiple channels. In such cases, even if one person handles different channels, there should be distinctions in visit routes and policy strategies, with different requirements for business work, so that salespeople understand the differences and characteristics of each channel and can conduct business accordingly.

**Standardized Terminal Routes**

Terminal route standardization is a requirement many manufacturers impose on distributors, but some distributors still find it difficult to implement, or salespeople find it hard to execute. The reason is that salespeople are order-oriented rather than balancing orders and terminal management. Standardized terminal routes not only facilitate orderly terminal work but also help maintain customer relationships. To standardize terminal routes, first plan the number of outlets a salesperson can visit daily based on different channels, then organize outlets and form a route map, and crucially, create a terminal route table. With visual and textual materials, salespeople are more likely to follow the requirements. Finally, there must be supervision and inspection of actual visit routes, with rewards and penalties.

**Standardized Terminal Visits**

Common terminal visit methods include the seven-step, eight-step, or even nine-step approaches. The number of steps is not the key; what matters is that salespeople can discover content that helps sales and ultimately internalize that terminal visits are for improving sales and market competitiveness, not for showing off steps to superiors or professionalism to terminal owners. Therefore, the key to standardizing terminal visits is standardizing mindset and awareness.

**Standardized Promotions and Marketing**

How can distributors demonstrate professionalism in promotions and marketing? First, the distributor team needs to standardize execution. This requires distributors to genuinely value promotions and marketing, especially marketing activities, because they may not immediately boost sales but can gradually cultivate consumers and, over time, increase sales. In terms of promotion intensity, scale, and frequency, follow manufacturer requirements as much as possible. Second, in cooperation, leverage regional advantages, actively select activity venues, and in large-scale promotions, arrange for salespeople to participate actively and gradually form the distributor's own promotion standards, sales promotion work guidelines, and other related documents.

**Standardized Advertising and Branding**

Advertising and branding not only promote the manufacturer's brand but also create a regional market atmosphere. A good advertising and branding image can create a prosperous sales scene for some consumers, especially during holidays. Therefore, distributors should treat advertising as an important task, requiring salespeople to follow the manufacturer's layout standards, including placing different advertising materials in different terminals according to standards. During routine market visits, leaders should check and supervise whether advertising materials are used in compliance with standards.

**Team Building: Let Employees Do the Right Things**

As part of the channel, the core work or the basis for a distributor's existence is product circulation: upward, cooperating with manufacturers to select brands and products; downward, connecting with secondary wholesalers, terminal merchants, or consumers to ensure product flow. Thus, distributors cannot operate without a team, making team management a key task.

Distributors often report that good marketing personnel, after years of training, leave just when they start generating significant performance. In reality, due to overall marketing gaps in society, there are few truly skilled marketing managers, and distributors' stability and benefits are inferior to manufacturers, making it hard to attract talent. Consequently, distributors face talent shortages. How should they handle team management given their actual situation?

**Recruit the Right People**

When recruiting, choose the right people: prefer local candidates, as they are relatively more stable; outsiders may not stay long unless they settle locally. Second, choose appropriate education levels for different positions. For management positions, higher education may be preferred; for frontline sales positions, general education suffices. Highly educated frontline salespeople often leave for better platforms after being trained.

**Train People with the Right Methods**

To help newcomers grow faster: First, when recruiting, distributors must clearly understand what they want the new hire to do. Many distributors might say, "What's so hard? Just sell goods." But that's not the case; each company has different selling methods. Some only require order taking, others require delivery as well, and some require selling other products. Therefore, the boss should clearly state the job content during interviews. Many young people quit after a few days because they feel the actual work differs from what was described. Second, after new employees join, they should be paired with experienced employees of good character for a period, regardless of whether they have work experience. This is not only about familiarizing with work but also about helping newcomers get to know the company through the old employee. Thus, the old employee's character is crucial. Finally, and most importantly, distributors should gradually improve work processes and standards for each position. If distributors can do this well, new employees can follow these as a manual, knowing who to contact for what and how to do it, quickly entering their roles.

**Motivate Current Employees to Achieve Greater Performance**

Currently, many distributors use a salary system of basic salary plus allowances and commissions. This system is straightforward and easy to operate. Here, I'd like to add that allowances and commissions should differ between new and old employees, especially allowances. For old employees, slightly higher allowances can be a way to retain talent.

**Retention: Differentiate Treatment**

Retention is key for retaining key positions. Develop a salary system with daily work and year-end commissions. For capable key personnel, even consider introducing a partnership system.

**Manufacturer-Distributor Cooperation: Leverage Strengths for Win-Win**

For distributors, manufacturers are the source of products and policies; for manufacturers, distributors are the channels for product distribution. Therefore, distributors cannot create profits without manufacturers' products. However, there are fundamental differences in interests: manufacturers seek long-term profits, while distributors focus on how much profit a product can bring this year; if profits are low, they may switch products next year. But both share the common goal of profit. Thus, cooperation should be based on profit, and exploring other feasible models is key to resolving differences.

Source: Huaxia Wine News
-END-

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