workshop docs

1. NATIONAL ASSOCIATION OF
ELECTRICAL DISTRIBUTORS
Maximize
Your
Marke.ng
AdVenture
2012
Sue Smith
Professor of Marketing
Syracuse University

2. What can you do in the next 3
hours that will help you be more
successful next year?

3. Education & Research Foundation
Channel Advantage Partnership
Council
Maximize Marketing Efforts
Best Practices in the Electrical Marketing
“The
study’s
goals
are
to
provide
a
framework
and
understanding
for
Electrical
Distribu.on
marke.ng
execu.ves
and
managers
to
pursue
marke*ng
excellence,
op*mize
resource
alloca*on
and
measure
marke*ng
produc*vity
and
performance.”

4. Goal for this workshop:
• Review study as a Community of
Electrical Marketing Professionals
• Tap into the experience, expertise and
insight of others at the conference
• Learn something which will enable each
of us to be more successful next year
• Make new contacts who might be a
future resource or sounding board

5. “Networking” with a Focus
Five Contemporary Marketing Themes
Marketing
Metrics
Digital :
Online and Building
Social Brands
Media
Best
Practices
Collaborative Marketing
Marke.ng
Excellence

6. Marketing
Metrics
Focused
Networking
Online and
Social
Media
Best
Practices
Building
Brands
• Seek out others
Collaborativ
e Marketing
Excellence
Marke.ng
– with common goals for improvements
– who have already solved your problems
– who can offer an outside perspective
– who want to be collaborators or mentors in
your continuous improvement journey
– who can help with specific and proven tips to
turn ideas into actions

7. Timing Marketing
Metrics
8 – 10 Review Study & Network Online and
Social
Media
Building
Brands
Best
Address all 5 themes Practices
Pick your priority theme
Collaborative Marketing
Marke.ng
Excellence
10 – 10:15 Break
10:15 – 11 Deep Dive into your high priority theme
Work as a Team to share insights,
practices and choose the Best.
Implement at least one Best Practice from this workshop next year
Develop at least one new relationship that will help you

8. Tools & Rules
• Maximize Marketing Journal
– IPAD/tablet, I-phone, notebook/pad
• Seek out and have discussions with those
you haven’t met yet or don’t know well
• Never sit down at the same table or pair
up with the same individual twice!

9. If this were a game it would be
• 5 Themes of Marketing “Speed Dating”
How many new contacts can you make?
• 5 Themes of Marketing Scavenger Hunt
How many ideas, insights, practices and tips
can you collect? Marketi
ng
Metrics
Online
and Buildin
Social g
Best Brands
Media
Go for it – there are prizes to win!
Practices
Collabo Marketi
rative ng
Marke. Excelle
ng
nce

10. Maximize Marketing Journal
• Record & count contacts
• Record ideas, insights, actions, questions,
quotes, tips, how-to’s, watch out for, etc.
• Self evaluate your “marketing maturity” level
on each theme “1 (nubee) to 5 (expert)

11. Let’s get started
• Market Share
Marketing • ROMI
Metrics • Customer Satisfaction

12. Why measure Market Share?
• Fundamental measure of competitiveness
• Relative measure to market & competition
• Helps you plan ahead or measure past
performance
• Supports segmentation strategy
Market Share is the percentage of market (defined in either
units or revenue) accounted for by a specific entity.

13. Approximately how often do you review
market share?
66% of Respondents regularly review MARKET SHARE
23 % occasionally review and 11% never review it
11%
23%
33%
33%

14. Market Share: Data & Process
• What data do you use for market potential?
– DISC 32% - Other 24%
– EW Magazine 28% - MSA/Census 13%
– Vista 2%
• What process do you use?
– In house 36% - Rely on Mfrs 22%
– Purchase Reports 24% - Rely on Reps 11%
• DISC or Vista - Other 7%

15. Why measure Return on Marketing
Investment ?
• How what you spend on marketing impacts your
profits
• Improve productivity and efficiency
• Compare alternatives
Return on Marketing Investment (ROMI): The contribution
attributable to marketing (net of marketing spending),
divided by the marketing “invested” or risked.

16. Approximately how often do you review
Return on Marketing Investment?
65% of Respondents regularly review ROMI
20% occasionally review and 15% never review it
15%
20%
31%
34%

17. ROMI: What & How?
• What do you measure ROMI on?
– Total Marketing Spend 24%
– Specific Campaigns & Promotions 36%
– Both 40%
• What do you use as returns?
– Sales Revenue 36%
– Gross Profits 45%
– Net profits 19%

18. Why measure Customer Satisfaction?
• Will your customers continue to be your
customers?
• Focuses entire organization on servicing
customer requirements
• Drives brand integrity for Distributors who
differentiate as a service brand
Customer Satisfaction: The number or percentage of total
customers, whose reported experience with the firm its products and
service levels exceeds specified satisfaction. Best Practice includes
willingness to recommend.

19. Approximately how often do you review
Customer Satisfaction?
54% of Respondents regularly review Customer Satisfaction,
36% occasionally review it and 10% never review it
10%
36%
28%
26%

20. Customer Satisfaction: How?
• Regular Top Management visits 69%
• Formal Surveys 49%
• Monitor Complaints 49%
• Customer Councils 14%
• Other 7%
Note – “check all that apply”

21. Top 3 Distributor Metrics rated by
Manufacturers
• My lines’ Year over year Sales
• My lines’ Market Share
• My New Product Performance
29 % of manufacturers get market share data & consider it very important
60% don’t get it but would see great value in it

22. What is your organization’s Metrics
Maturity Level?
1. Newbee – we don’t do any marketing metrics
2. Novice – we do some, just learning how
3. Basic – we’re functional and improving
4. Competent – we do this well
5. Expert – we’ve been doing consistently for quite
a while and using it for strategic decisions

23. Ready to Speed Date on Metrics?
• Give yourself a metrics score from 1 – 5
• 4 & 5’s stand up around the perimeter
• 10 minutes for Networking
– Time your own conversations
• Journal contacts & ideas/practices
Happy Best Practice Hunting!
Hope you make some new friends!

24. Metrics Conversation Starters
• Market Share, ROMI, Customer Satisfaction
– Who does it well? Who wants to do it better?
• What’s your organization’s maturity level?
– Tips about how you do it?
• Which Data? What’s your Process? Implementation?
– What’s different since you started measuring?
– What would you like to improve?
– How does your organization react?
– Dig into both Manufacturer and Distributor
perspectives

25. Sit down at the nearest (new) table for Theme 2
• Do brands matter?
• What defines your
Brand brand?
Strategy
• How do you manage
it?

26. Do brands matter in the
electrical industry?

27. Distributor Leadership clearly understands
(91%) the importance of building a strong
brand identity
1%
1%
7%
32%
59%
The concept of Brand as our identity and reputation is very important to our
leadership team.

28. Whose Brand Matters?
Customer’s
Buying
Decision
Distributors
Manufacturers
Equal
63%
63%
Distributor
Brand
25%
4%
more
important
Manufacturer
Brand
5%
28%
more
important
Neither
maRer
–
7%
5%
mostly
price/delivery

29. Distributors have Service Brands
Brand identity most often defined around
1) Commitment to Customer 2) Product Knowledge and 3) Inventory
# of Distributors selecting in top 3
Of the following elements that might differentiate you from competition, choose
the top 3 in order of importance for your brand identity.

30. Brand Management
Top performance for documented Graphic Standards
Lowest performance for Brand Positioning Statement
Mean Performance Rating: 5 = Excellent; 1= Poor
Regarding brand management , rate on a scale of 1 - 5 (1 = poor, and 5 =
excellent) how well you achieve these brand practices.

31. Ready to Speed Date on Brand?
• Distributors stand the perimeter
– Manufacturers on the inside
• Speed date for 10 minutes
• Journal your contacts & concepts
Happy Best Practice Hunting!
Hope you make some new friends!

32. Brand Conversation Starters
Introduce your brand to your “dates” as if
introducing a friend
Does everyone is your organization share a
common understanding of what your brand stands
for? What about your customers? How do you
know?
How do you teach your brand to new employees?
Do you have a Brand Standard? How has it helped
you manage your brand?
Do you have Brand Positioning Statement?

33. Sit down at the nearest (new) table for Theme 3
• Leveraging
Collaborative Distributor /
Marketing
Manufacturer’s
Strength

34. Collaboration is essential to Marketing
Effectiveness & Efficiency
94% of Distributors 98%
of
Manufacturers
The level and quality of collaboration between manufacturers and
distributors is a major factor in the effectiveness of a Distributor’s marketing
programs.

35. Sales Teams & Communication
Top factors in Collaboration
Distributors Manufacturers
Rate the Importance of these factors to how well Distributors and
Manufacturers work together.

36. Distributors see room for manufacturers to
improve
Indicate in general how satisfied you are with your manufacturers’ performance.

37. Manufacturers see room for distributors to
improve
N
=
112
-­‐
117
Indicate in general how satisfied you are with your distributors’ performance.

38. Distributors rate Ease of Use of Coop programs #1
driver of Marketing Efficiency!
#
of
Distributors
ranking
1,2
or
3
Some manufacturers are easier and more efficient in terms of supporting your
marketing efforts. Select the top 3 factors important to your efficiency.

39. Manufacturers’ view of what drives Distributor
marketing effectiveness
• Execute well and have good metrics
• Have
a
very
strong
marke.ng
dept
• They have their own marketing departments and allocate the funds where it is
needed. Have
dedicated
resources
to
manage
the
use
of
the
funds
• Spend more strategically, have opportunities for richer more robust programs
• They invest in activities that specifically generate incremental sales for both the
distributor and our company.
• They actually use the funds to market our products, run promotions, hold
counter days and other training events. We find that a good portion of funds go
unused or will be spent on activities with a lower ROI.
• They utilize these funds more directly on our brand and product line
versus
lumping
in
all
manufacturer's
into
one.
• Focused marketing strategy which yields better marketing plan for the year.
• Top
to
boRom
organiza.onal
commitment
to
innova.ve
marke.ng
ini.a.ves.
• Drive
sales
through
specific
promo.onal
ac.vi.es
rather
than
general
events
like
golf
ou.ngs,
trip
sponsorships,
etc.
What do those distributors who receive a higher proportion of your
marketing funds do differently than the rest?

40. Ready to Speed Date on Collaboration?
• Manufacturers stand up around the
perimeter
• Distributors stay in the inside
• Speed date for 10 minutes
• Journal your contacts & concepts
Happy Best Practice Hunting!
Hope you make some new friends!

41. Collaboration Conversation Starters
• How do you encourage communication at all levels?
• Share examples of excellent joint planning or achieving
true collaboration?
• Discuss role of marketing groups in fostering
collaboration, follow through and results.
• What can be done to mesh marketing calendars more
effectively? And be ready for Q1?
• Where are the metrics gaps which manufacturers seek?
How can this be remedied?
• What about accountability and resources – how to insure
there is true commitment to plans?
• Best way to pick your partners?

42. Sit down at the nearest (new) table for Theme 4
• Technology’s
Digital potential to
Marketing Maximize
Marketing

43. Digital Technology will maximize marketing
in many ways…
• Distributors Direct Marketing to Customers
– Email , social media , blogs, web sites
• Distributors & Manufacturers arming Sales Forces with
Selling Tools
– Electronic catalogs, brochures, ads, sales & customer
training
– Application and product selection guides
• Increased metrics which accompanies digital media
• Mobility – on the job site, at the sales call
• Self-serve 24 x 7 for product support, marketing
material, and order processing, transactional data

44. Websites and direct email are the most actively
used internet based marketing tools,
followed by ecommerce.
# of Distributors Actively Using
N=
184
Of the following internet based marketing tools,
please describe your level of use.

45. Many distributors have plans for Mobile Apps
# of Distributors not yet using with plans to in the future
N= 184
Of the following internet based marketing tools, please
describe your level of use.

46. Interesting phenomena: Distributors tools in
place yet they are not actively using them
# of Distributors not actively
using tools they have
Of the following internet based marketing tools, please describe your level of use.

47. Product info, marketing collateral and sales
training provided on manufacturers’ web
increases efficiency
89%
72%
73%
18%
66%
17%
24%
2%
With regard to distributors using our website to maximize their marketing
effectiveness, our website:

48. Manufacturers are optimizing websites for tablets
and smart phones
%
of
mfrs
N
=
124
Choose the statement that best describes how you provide digital information for
use by your distributors’ sales force.

49. Distributor & Manufacturer Sales forces
rapidly becoming mobile-equipped
Distributor
Manufacturer
Smart
Phones
51%
48%
Tablets
4%
2%
Both
SP’s
and
Tablets
25%
28%
Plan
to
within
next
year
8%
14%
No
plans
for
mobile
11%
8%
devices

50. Ready to Speed Date on Digital
Marketing?
• Give yourself a digital score from 1 – 5
1. Newbee – we don’t do any digital marketing
2. Novice – we do some, not actively engaged
3. Basic – we’re beginning to find valuable applications & uses
4. Competent – we do some digital well, we are actively engaged and learning
5. Expert – we’ve focused on digital and are actively using for many purposes
• 4 & 5’s stand up around the perimeter
• Speed date for 10 minutes
• Journal your contacts & concepts
Happy Best Practice Hunting!
Hope you make some new friends!

51. Digital Conversation Starters
• Share Best Practices – specific examples of good
marketing applications (goals/results):
– social media (facebook, twitter, lindedin, You tube )
– Mobile apps
– digital program management (loyalty?)
– Email campaigns/ with metrics
– Websites optimized for customer needs
– Using SEO to find new customers
– Crm providing tools or metrics
– Driving efficiencies or cost reductions through digital
applications

52. Sit down at the nearest (new) table for
Theme 5
Marketing • Marketing Roles &
Excellence Goals

53. What is Marketing?
Crea;ng
Customer
value
Value
and
beneficial
Listen &
rela;onships
Respond
Customer
A
B
Delivering
Communica;ng
Value
Value
Source – Essentials of Marketing; Lamb, Hair, McDaniel

54. Marketing Role: drive growth & profitability
62% of Distributors 80% of Manufacturers
Choose the statement that best describes the marketing function in your
organization

55. Distributor Marketing Managers most often in Advisory Role
Marketing Role defined as Customer Insights & Managing the 4P’s
#
of
Distributors
Which of the following activities is your marketing department involved with?

56. Manufacturers' Marketing Managers more often a Main Driver
Marketing Role defined as Customer Insights & Managing the 4P’s
%
of
manufacturers
Which of the following activities is your marketing department involved with?

57. Distributor Marketing Goals:
Building loyal customer relationships & providing the
sales force with effective selling tools
Priority : high = 10; low = 1
Marketing programs are developed to achieve many different objectives. From the
list of objectives indicate your high, medium and low priorities.

58. Manufacturer Marketing Goals:
New Product Introductions and Distributor Loyalty
0
=
not
an
objec.ve,
1
=
low
priority,
10
=
high
priority
Marketing programs are developed to achieve many different objectives.
From this list of objectives indicate your high, medium and low priorities.

59. Distributors conduct a wide range of marketing
activities
Counter Days & Trade shows, Customer Training and Customer Events are
most common
#
of
Distributors
N
=
190
From the list of marketing promotional activities below, check all
the ones that you do.

60. Distributors believe Customer Training yields the highest
ROI
From the list of marketing promotional activities that you do, select the one that
you believe yields the highest ROI (return on your marketing investment)

61. Even higher percent of Manufacturers believe
Customer Training yields the highest ROI
No other activity comes close
From the list of distributor promotional activities that you support
financially, select the one you believe yields the highest ROI.

62. Ready to Speed Date on Roles & Goals?
• Speed date for 10 minutes
• Journal your contacts & concepts
Happy Best Practice Hunting!
Hope you make some new friends!

63. Roles & Goals Conversation Starters
• How is marketing defined in your organization?
• How many of the 4P’s does marketing do? As a driver? As
an advisor?
• Do roles need to change in any way to maximize marketing?
• What are your primary marketing goals?
• Which marketing activities do you do?
• Should there be more variety among marketing activities?
• Which activity do you believe yields the highest ROI?
How do you know?

64. 15 minute Break
Pick a theme for the Deep Dive (your priority for
improvement next year)
When you come back, sit at a new table by the
theme you selected
You can keep networking on break!

65. “Deep Dive” into your Theme
Marketing
Metrics
Sit by theme & share around your table
Online and
Social Building
•
Why this is your high priority ? Media Brands
Best
Practices
• What’s your challenge with regard to this theme?
Collaborative Marketing
• What would you like to accomplish next year? Marke.ng
Excellence
• What insights, ideas or best practices did you
collect while speed dating?
• Select the Top Best Practice – summarize on chart
• “Got to tell you about this idea!” 15 minutes
• Select a spoke person (up to 1 minute pitch )

66. Got to tell you about this idea! Marketing
Metrics
Online and
Social Building
Media Brands
Best
Practices
Award Prizes for the most Collaborative
Marke.ng
Marketing
Excellence
Contacts!
Award Prizes for the Best Ideas!

67. Give yourselves a round of applause!
• You really put the “work” in workshop!!!
• I hope you will hold onto these journals
– keep a dialogue going throughout the year
– marketing bar in the industry keeps moving
up!

68. Best Practice Resources
• NAED publications
– Complete survey results – available now
– 5 White Papers – Fall
– 2 archived webinars
• American Marketing Association
– Wwwmarketingpower.com
– Focus on Marketing Best Practices
– Marketers ToolKit
– Webinars, AMA TV, publications

69. Resources
Marketing Metrics:
50+ Metrics Every
Executive should Master
Farris, Bendle, Pfefer, Reibstein
http://www.cmosurvey.org/
CMO Survey – Insights & Best Practices
Dr. Christine Moorman – Fuqua B – school at Duke
University

70. Thank you!
Sue Smith
Professor of Marketing Practice
Whitman School of Management
Syracuse University
ssmith11@syr.edu