As part of the daily responsibilities of a manufacturer's sales personnel, managing and guiding the market operations of their assigned distributors is an important component. However, guiding distributors in market operations is easier said than done. Many manufacturer sales reps have experienced this: no matter how earnestly or eloquently they persuade, suggest, guide, or even criticize the distributor for doing things wrong, the distributor bosses basically let it go in one ear and out the other, not taking it seriously at all. Sometimes, only when the manufacturer's regional manager or headquarters leaders are brought in do distributors show some respect and make corresponding gestures in response.
Where does the difficulty lie? Simply put, there are two points: first, the use of resources allocated by the manufacturer, and second, the distributor's market operation strategy.
First, regarding the first point: when distributors first reach a distribution agreement with the manufacturer, they typically request various market launch and promotion support services (including online advertising and offline promotional investments). Nowadays, the manufacturer's online investments (referring to media advertising such as TV and newspapers) are usually directly controlled and operated by the manufacturer's marketing department, rarely allowing distributors to get involved. Offline investments (referring to ground promotional activity costs, KA entry and display fees, channel promotion costs, etc.) are supposedly jointly negotiated between the manufacturer and distributor. It is naturally very good and welcomed by distributors when manufacturer sales reps fight for resources for them. As for how these resources are used after approval, distributors prefer to have complete control themselves, hoping the manufacturer's sales reps stay out of it. However, manufacturer sales reps are naturally reluctant to let distributors freely use the funds and always try to direct how distributors should "correctly" use these expenses. This back-and-forth is the first difficulty for manufacturer sales reps in guiding distributor market operations.
Second, regarding the specific market approach: how to do the market, how to combine products, how to establish channel structure, the methods and steps for market development, and how to manage downstream customers? Manufacturer sales reps have their own ideas, and distributors have theirs. At this point, conflict arises. Distributor bosses rarely listen to manufacturer sales reps' advice on market operation strategy, thinking, "This market belongs to me, the distributor; I'll do as I please." Manufacturer sales reps, on the other hand, believe that the market is built on the manufacturer's products, brand, and market investment. The distributor is just a part of this market, and as the manufacturer's representative, they naturally need to regulate market operations. Both sides argue endlessly, which is the second difficulty for manufacturer sales reps in guiding distributor market operations.
Why do distributor bosses not listen to manufacturer sales reps' suggestions on market operations and resource usage?
Generally, there are two main reasons:
The purpose of controlling the market The market is open, belonging to both the distributor and the manufacturer; it depends on who has the ability to control it. Many manufacturers' strategy is to use distributors to build sales channels and use brands to guide consumers and terminals. The various market resources invested by the manufacturer are ultimately aimed at building the brand and controlling the sales channels.
Distributors' strategy, on the other hand, is to use the manufacturer's market investment to help them develop and build channels, and then use the various market resources they control to manage and mobilize downstream wholesalers and terminals, achieving a high degree of control over the local market sales network. They want to prevent the manufacturer from bypassing them to establish direct relationships with downstream customers. "You manufacturers just sell products; I, the distributor, will help you sell your products through my channels. As for the specific right to use market investment resources, it's best to keep it in my own hands. As long as I can complete your sales tasks, isn't that enough?" From this perspective, distributors naturally won't listen to the manufacturer sales reps' suggestions and opinions, or they simply play dumb, saying "yes, yes, yes, right, right, right," letting it go in one ear and out the other.
Unequal status between the two parties Many distributors also don't listen to manufacturer sales reps for another reason: psychologically, they can't accept the sales rep's guidance (or meddling) in their business operations. The reason is simple: manufacturer sales reps are usually in their twenties or thirties, with only a few years of business experience, while distributors are often over thirty or forty, with over ten years of business experience. In the distributor boss's view, "What qualifies you, a manufacturer sales rep, to guide me in business? Just because of your diploma? Just because of your position appointed by the manufacturer? Just because of the so-called marketing knowledge you learned in school and the professional training you received? Can business be learned from books? Do you know the ins and outs of business? When I was doing business, you were still in elementary school. I earn dozens of times more than you in a month. What makes you qualified to guide me? If you were really capable, you wouldn't be stuck at the manufacturer earning a paltry monthly salary; you'd have started your own business long ago. Besides, I talk directly with your manufacturer boss. As the executor of the boss's strategy, you're just a messenger and errand runner. Why should I waste words with you?"
These two points are the main reasons why distributors resist manufacturer sales reps' guidance, leading to constant disputes between sales reps and distributors. Many manufacturer leaders are also tired of this. One day distributors complain about sales reps, the next day sales reps complain that distributors don't follow the manufacturer's strategic commands. Manufacturer leaders, sales reps, and distributor bosses are often entangled in these communication issues, wasting a lot of time and energy.
Actually, some smart manufacturer sales reps approach this problem from a different angle:
Positive and negative Events that attract attention can generally be divided into two types: positive and negative. Positive events like "so-and-so learning from Lei Feng" have limited spread and attention. But events like "so-and-so is the new Nan Batian and Liu Wencai" spread much faster. The same applies to business guidance for distributors. In guiding distributors' positive business operations, manufacturer sales reps naturally lack the depth and diversity of experience and perspective that distributors have, meaning they don't have stronger money-making abilities than distributors. However, because manufacturer sales reps have broader information sources and experiences, they know more about various negative incidents that distributors encounter—like a distributor being cheated by their own employees, another being shut down by government authorities, another being deceived by downstream customers, etc. These negative events easily attract distributors' attention and further inquiry. After all, "the mistakes of the past are the guides for the future." No one wants these incidents to happen to themselves. Moreover, as the market becomes more complex, the types of incidents are also diversifying, and many are so novel that distributors sitting at home couldn't imagine them.
Knowing early and taking preventive safety measures is a focus for every distributor. Since distributors have limited vision and information sources, they naturally can't match manufacturer sales reps in terms of information channels and timeliness. If manufacturer sales reps have access to such information, it's very easy to attract distributors' attention. Additionally, because manufacturer sales reps encounter more distributor incident cases, their observation and analysis abilities are stronger than distributors'. In this regard, it can serve as an entry point for guiding distributor work. If you can't prove you can bring benefits to others, at least you can help them avoid risks.
Helping distributors train their staff Another approach: in the early stages of contact with distributors, manufacturer sales reps can avoid positioning themselves as sales reps who command distributors, and instead start by helping distributors train their employees. After all, manufacturer sales reps generally receive more professional training and have higher overall quality than distributors' staff, which distributors can acknowledge. So, instead of rushing to guide distributors, manufacturer sales reps can start by helping improve the work abilities of distributors' staff, essentially training their employees. This is easily accepted by distributors. After gaining the distributor's recognition and approval, gradually transitioning to guiding the distributor themselves becomes relatively easier.
[Author bio: A private business owner, having managed a family distributor company for many years, during which time also served as business manager and trainer in several manufacturing enterprises. Research focuses on internal management of small and medium-sized private enterprises, with main topics including personnel management, cost control, management backend setup, and veterans entering private enterprises. Continuously breaks down over 400 topics related to private enterprise internal management, maintaining material collection and solution updates.]
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