Manufacturer/Distributor Joint Marketing Plans
Lately, Manufacturer and Distributor Joint Marketing Plans have been on my mind. This time of year I generally take a lot of calls from distributors and their supply partners on the topic. Allow me to share a few random thoughts. There are two varieties of plans which seem to go by the same name. Let’s look at both of types: Rebates designed to drive distributor behavior and reward performance. These plans typically create an incentive which comes as a rebate based on the distributor following some guideline. For example, if the distributor carries all of the manufacturer’s products, they get a bigger rebate than the wholesaler who simply cherry-picks the best of the supplier’s product line. Other versions of this type of plan incent distributors for having a specialist, properly trained staff, the right level of demo equipment or the proper inventory. I like these plans as they drive the behaviors and incent the distributor for being more than just a logistics arm for the ...