Manufacturers Marketing to Agents

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Honesty begets trust. Trust begets performance. That’s how Stephen Fowler opens a conversation about how manufacturers ought to be marketing themselves to independent manufacturers’ representatives.

To emphasize his point about honesty and trust, Fowler, Process Equipment Resources & Consulting, Bridgewater, New Jersey, refers to the 1885 Winslow Homer painting “The Fog Warning.” In this work, the artist depicts a fisherman who has been successful with his day’s work. The halibut in his dory attest to the fact he’s done his job — but the most difficult task lies ahead of him as he must successfully navigate his way back to the mother ship with his catch. To accomplish that goal he must not only battle the high seas and wind, but also an approaching fog bank which could cause him to lose his way.

Fowler cites this imagery to indicate how important honesty and trust are in a relationship — and those are both attributes that a manufacturer must communicate in their marketing to agents. Just as the fisherman must have trust that the mother ship will be there for him, so too does the independent manufacturers’ representative need trust in the manufacturers with whom he goes to market. “In the absence of trust in the mother ship, the fisherman will feel an amazing sense of isolation. It’s the same type of isolation a rep can feel if there’s no sense of honesty and trust with his manufacturer.”

Honesty and trust aren’t all that’s needed between manufacturer and rep, however. In the opinion of Fowler, who joined MANA’s Board of Directors this year, “There are generally two types of scenarios when a manufacturer approaches a rep. First, you have the manufacturer that doesn’t know all that much about the market or the agency that he’s contacting. He may not have any relationships in your territory and wants to build the market for his company. Then, there’s the manufacturer who might be in the midst of replacing an agent and he’s looking for someone that knows the market.”

Ready for Work

In either case, according to Fowler, “The manufacturer has to be able to show that he’s ready to work with reps. It’s nice to know that the manufacturer wants the business from the territory, but has an increase in business been factored into your capabilities? How well do they work with reps? How do they handle problems that reps bring to them? How are you going to respond to the level of dialog that we normally have with our manufacturers? All these — and other — questions have to be asked and answered.”

An additional consideration that Fowler offers is the type of company that will approach an independent agency. “There’s quite a distinction among companies that approach reps. For instance, the sales manager for a large corporation may be more inward than outward looking. By that I mean he may be more concerned with how other people in his organization look upon the sales function. As a result, when they market themselves to reps, they may say all the right words about quality products and valuing the customer, but when the quarterly review comes out, things can change. With a smaller manufacturer, on the other hand, there may be a more local attitude and their view of reps is quite different. Finally, you’ll have overseas manufacturers that are an entirely different consideration.”

Fowler, who’s been a manufacturer prior to being a rep, notes that there are “manufacturers who know that they have to market and sell to customers but don’t necessarily think they have to sell themselves to reps. That’s simply not the case.”

Ease of Doing Business

There’s something else that’s important for manufacturers to keep in mind as they market themselves to potential and existing reps. Are they easy to work with?

That’s a point Fowler emphasizes when he says “Here’s what’s important for a rep in his relationship with a manufacturer. Certainly our reputation is important. Our customers are our friends and they have to be certain that the products we bring to them are of the highest quality. It’s critical that the products we bring to them are at a price where we can competitively sell them. Those products must be brought to them on time and we must be paid our fair commission within our agreed terms. Having said all of the above, however, the one thing that really can’t be measured quantitatively is whether the manufacturer makes it easy for us to conduct business with him. If he’s easy to work with then I will sell his product at the expense of other products that are less easy to sell. I’m not talking about required paperwork here, or the need to attend local trade shows or anything else. What I’m talking about is making my life easy so I wake up every day, and have a plan whereby I can bring a lot of different things to customers. Do that and I will optimize my efforts so I can earn a faster, bigger paycheck. I’m asking that you become my ‘emotional favorite.’”

A Total Marketing Approach

If Fowler’s words can serve as a preface for a discussion on the importance of manufacturers professionally marketing themselves to independent manufacturers’ representatives, then it’s wise to keep in mind a great deal of what MANA has preached on this subject over the years. Consider a number of elements that manufacturers and agents agree contribute to a total marketing approach.

  • Honesty/Trust

Closely related to what Fowler spoke about, the manufacturer should be able to demonstrate to a prospective agent that he and his company will be able to live up to the commitments it makes. A willingness to routinely make commitments and have a sense of urgency to live up to them will clearly define the organizational culture of a successful company. This commitment covers all aspects of the business relationship whether it’s simply returning phone calls to on-time shipments to prompt resolution of problems. This is the type of culture that has to be communicated to reps and customers and it’s that commitment that develops long-term relationships between reps and manufacturers.

  • Comprehensive Marketing Plan

A comprehensive marketing plan requires a sound feedback system with a proposed rep network. Remember, agents are the conduit to the marketplace, serving as eyes and ears in the territory. As such they are in the ideal position to advise on products and service needs — now and for the future. It remains for the manufacturer to gather all the input he can from his agents and then to convert it into a marketing picture that will lead to a comprehensive plan. This plan should contain clear objectives, sound product and market strategies and detailed programs. The aforementioned should then be clearly communicated to the agency sales force in order that they know how to productively invest their time, money and effort.

Having opened the communication doors, manufacturers should not feel uncomfortable with the feedback they receive from reps. It’s not unheard of that executives might feel uncomfortable as their reps are perhaps more candid with opinions than their direct salespeople are. An important consideration here is that if an agent is not advising a manufacturer on how they should approach efforts in the territory, then the rep is not living up to their responsibility.

  • Product Quality and New Products

Nothing can be more basic for a manufacturer’s reputation than its ability to furnish quality products. The majority of reps will vouch for the fact that high product quality is the major single ingredient when it comes to enhancing the image and reputation of their firm and the manufacturers that they represent.

The next step to quality products when it comes to getting the attention of an independent agent is to demonstrate the ability to provide a steady stream of new products. It’s no secret that reps desire established product lines with a base of business from which they know they’ll receive an income stream that will allow them to further the growth of their business. At the same time, there’s no better way to motivate a rep than by having a reputation for introducing quality new products. That provides the rep with something new to communicate to their customers.

  • Product Training

If a rep has difficulty understanding a manufacturer’s products, chances are the problem emanates from the manufacturer. For years, agents have communicated to MANA that the most valuable service a manufacturer can provide them is comprehensive product training. Reps have shown that they will jump at the chance to travel to the manufacturer’s factory in order to be brought on up-to-date on the latest product offerings. That only makes them more confident and qualified in the field.

  • Advertising and Promotional Programs

The objective for the manufacturer here should be the ability to develop and demonstrate not only a company image in the marketplace, but also to develop qualified sales leads. Manufacturers should not expect reps to develop all the sales opportunities by themselves. Rather, promotion is a joint responsibility. Reps develop very high levels of commitment to a manufacturer who has a well-planned advertising and promotional program that generates qualified leads. The plus for the manufacturer is that it then allows the manufacturer to gather detailed feedback from their reps on these qualified leads and calculate the return on their investment in advertising and promotion.

  • Collateral Considerations

The manufacturer should also be able to demonstrate that it can deliver clear application and pricing data, competitive analyses, market analyses, success stories, organizational charts and contact points, not to mention a variety of other materials that any salesperson needs in order to be truly effective in the marketplace.

MANA welcomes your comments on this article. Write to us at [email protected].

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Jack Foster, president of Foster Communications, Fairfield, Connecticut, has been the editor of Agency Sales magazine for the past 23 years. Over the course of a more than 53-year career in journalism he has covered the communications’ spectrum from public relations to education, daily newspapers and trade publications. In addition to his work with MANA, he also has served as the editor of TED Magazine (NAED’s monthly publication), Electrical Advocate magazine, provided editorial services to NEMRA and MRERF as well as contributing to numerous publications including Electrical Wholesaling magazine and Electrical Marketing newsletter.