Reps, Do You Market Up?

MANA (the Manufacturers’ Agent National Association) recently had a very interesting article in their magazine on the need for manufacturer representatives to market themselves to their manufacturers as this can help reduce the risk of terminations caused by manufacturer personnel change.

In today’s environment, we find that the ability for manufacturers and representatives to be tied for “life” is no longer anticipated as it once was. How many reps now are able to claim 20 year or longer with a specific manufacturer?

Certainly, there are plenty of reasons including mergers of manufacturers, but a newer issue as we have pointed out is the consistent changing of regional managers who may be unaware of either history or local relationships. We have also found that territories for regional sales managers have also expanded and created less traveling and sales planning according to our NEMRA REP OF THE FUTURE interviewing and as supported by many distributor interviews. (If you want a preview of the 2025 Rep of the Future, which was presented at NEMRA, email us. If you want the Manufacturer of the Future, email Sue Todd at NEMRA)

It therefore increases the need for representatives to increase their communications with not merely their local manager (district / regional) but perhaps include others than merely sales professionals from the manufacturer. This is what we call “marketing up.”

Allow me to share some examples.

Lost Relationships Can Equal a Lost Line

My prior company represented a manufacturer for over 40 years. They had the same regional manager covering the territory for many years. I considered him a friend. We often spoke regarding sales opportunities, and necessary strategies to gain share profitably. Under his leadership we earned many sales and operations awards.

Together we were successful.

“Our” manager, deservedly and successfully, over the years was progressively promoted and eventually became the President of the company.

Under his leadership, and as many manufacturers have encountered, he hired various regional managers for our territory and a few Vice Presidents of Sales. Over the years we brought customers to his factory for important visits so we stayed in touch and would be “face to face” regularly.

Every year, I called the current regional manager of the manufacturer to continue these customer visits. When I didn’t hear a response, I tried the VP of Sales and after four years of trying, I failed to call on my former regional manager who was now President, feeling he had other issues far more important, plus our business continued to grow.

All seemed fine, until, that fall, we had a target account that “pushed the envelope.” An “important target account” (aren’t they all), told us what was needed to convert their business. As an agent, we couldn’t make the decision, so we went to the regional manager. After not hearing back for a bit, the opportunity was elevated to the VP of Sales. Again, nothing was heard.

And, as reps know, “crickets” is not good.

We were concerned until we arrived at a NEMRA meeting where the VP and regional manager stated not to be concerned and to continue doing exactly what we were doing. Two weeks after NEMRA, we were fired. When I called the President, he said he didn’t feel we had the same relationship as in the past.

I completely blame myself as I had failed by only communicating with those directly involved with our territory. Neither the RM or VP had ever been in our territory to travel with a single one of our salespeople.

The lack of visibility, coupled with only being a sales figure on a report, made us invisible, and therefore replaceable. The old adage “out of sight, out of mind.” It was a prime example of “relationships matter.”

Seeing Opportunities That May Not Work for Others

I was visiting a manufacturer when a product manager was talking to a few of us on a new product he was responsible for. He was complaining about the sales results of the product.

It was an excellent product with a wonderful sales promotion for distribution and the reps (in his opinion.) He had sent the program out and asked the reps to come back with a dozen target industrial accounts to qualify. Out of nearly 30 reps; 5 responded. He said he wouldn’t run the program for just 5 and I asked why? I said the product and program was excellent, and suggested he run the program with the 5 reps, share the successes, and then others may want to run the promotion. I don’t know why the other 25 or so were not interested. Maybe their regional managers didn’t present the program? Or present it right. He said he couldn’t tell his boss he wanted to run a promotion with only 5 reps. So, no promotion. Therefore, no sales. Shortly thereafter he lost his job. Our company ran the program internally for customers and we became the Top Sales Agency for the product and an award as the highest margin rep for the manufacturer.

Thoughts

Many representatives do outstanding marketing with their distributors, and many are now implementing marketing strategies with end users, but how many take the time, or have found the necessity, to share their strategies, successes and failures with their manufacturers?

It used to be easier when factory visits were regular and required.  In my opinion, regional management is essential and should be the rep’s most important direct contact at the factory. Maybe I’m old-school and think that regional managers should embrace the “managing” part of their title and be a contributory partner to a successful relationship.

Should we stop there? I have found the geographically growing agents do not. They have relationships with multiple people at the manufacturer and frequently travel to see higher management not just in sales. They carry a message that specifically speaks to not only sales, but to marketing, operations and other areas to their companies. They bring local market knowledge and distributor, and more importantly, end-user insights.

Consider that many manufacturing salespeople have increasingly remarked that their company’s decisions are being made by non-salespeople. You can accept this and act, or like in my case as previously mentioned, you can fail by being shortsighted.

Remember, people still make the decisions, but nowadays it is multiple people at the factory. If you are out of sight …

A structured manufacturer marketing strategy can help a rep differentiate themselves. For ideas on how to cost-effectively, and efficiently, implement a manufacturer marketing strategy, gives us a call or email us.