Before discussing distributor interests, the author wants to present two basic viewpoints: one is the interest-driven perspective, meaning any commercial activity must have an interest-driven factor. The other is the greed perspective, where in business activities, people are inclined to seek bargains, and the wealthier they are, the greedier they become. Under these two premises, analyzing distributor interests becomes easier to understand and grasp.
Before solving a problem, one must first analyze it. Before analyzing distributor interests, we must first understand the types of interests from multiple angles. In a previous article, the author mentioned that the overall classification of interests has two forms: one is gaining, and the other is avoiding loss. In plain terms, one is the positive aspect of obtaining something, and the other is the negative aspect of avoiding losses. For example, when marketing chewing gum to a customer, saying it freshens breath is not as effective as saying it prevents tooth decay or avoids losing business due to bad breath. Psychological research shows that people are animals that only change when faced with pressure and pain, and the motivation to escape pain is four times stronger than the pursuit of pleasure. Therefore, when discussing interests with distributors, emphasizing negative aspects may more easily attract their interest. In marketing, we often describe interests in terms of direct benefits and extended benefits, or direct losses and extended losses.
In marketing activities, it is also necessary to analyze the types of distributor interests from multiple angles. When distributors and marketers discuss business, they usually first encounter the product, so it is essential to have a clear grasp of product benefits. As the name implies, product benefits are the benefits the product brings to the distributor. This benefit has three meanings: first, general product benefits, which are the benefits the product's functions bring to the distributor. For example, a pen is used for writing, so the function of writing is the general product benefit. Second, special benefits, which are the benefits that differentiate our product from similar products of others. For example, if our beer does not contain formaldehyde, that is a special benefit. Third, desired benefits, which are the benefits that the product exactly meets the distributor's expectations. Among these three sub-benefits, the latter two are the ones you should emphasize in negotiations with distributors. When a distributor operates a company's product, it means they have a connection with the company and an interest relationship with the brand. This benefit is the brand benefit, which is very important for both distributors and end consumers. The ability to describe this benefit tests the marketer's ability to paint a picture. We must repeatedly describe the future development potential and state of the brand when the distributor operates it, preferably in specific terms, such as after five years, what sales volume the distributor will have, how many staff, and what assets. Then there is the differential benefit, which is the most important benefit because it determines the distributor's final choice. What is a differential benefit? It is something unique that you have and others do not. For example, if you have a patented product, you can have the initiative in negotiations. After the boring discussion of interest theories, the author will now discuss how to grasp distributor interests in specific negotiations.
To grasp distributor interests, one must first understand the distributor's way of thinking, which is influenced by the broader environment. So first analyze the current economic environment, stock prices, property prices, oil prices, commodity prices, etc. Specifically in the distribution field, oversupply and intense competition are external factors. Looking at the distributor's internal situation, issues such as personnel management, financial management, and logistics management have already exceeded the distributor's current level. If you can effectively help customers solve these problems or help them avoid losses, then you have taken the initiative.
First is grasping the distributor's internal interests. Why discuss internal matters first? Because internal factors determine external factors, and external factors are manifestations of internal ones. Solving internal problems is the fundamental way to solve problems. That is why Chiang Kai-shek's strategy of "settling internal affairs before resisting external aggression" was correct; the failure was due to the lack of an army with execution capability. The main internal problem for distributors is corporate management. Many distributors are in an awkward state, wavering and struggling between family management and corporate management. Currently, many distributors we encounter are still family-run. Family-run distributors face difficulties in personnel recruitment and management, as well as logistics, taxation, and other areas. In some aspects, marketers may find it hard to help solve these issues, but in terms of training distributor staff and terminal training, marketers are stronger than distributor personnel. So helping distributors solve things that can show results in the short term is also a way to attract distributors. The author has a dedicated article on the specific internal problems of distributors, so I will not elaborate here. Regarding external problems faced by distributors, there are also various types; some need immediate solutions, while others can wait, and this requires the marketer's judgment.
In the past, Confucius said, "Do not do to others what you do not want done to yourself." This is a truth, and I do not want to challenge it, but I can supplement and develop it. Many times, what you do not want does not mean others do not need it. Therefore, it is important to think from the customer's perspective when analyzing and thinking.
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