Wants Vs Needs in the Distribution World

In the business world comes the age-old questionOn the Distributor side, it is all about (or should be
of what do our businesses need to grow, muchall about) customer service. Again, without
less survive in these economic times?customers, we die quickly. Let's say that
Manufacturers, distributors and reps all need to doDistributor Z decides to diversify into a new
one thing to stay in business: sell. Salesmanshipindustry. They want (read: wish/yearn/desire) the
101 dictates that companies need to have 'feetbest lines, the best available tools and personnel
on the street' promoting their wares, or theto succeed. They need (read: must-have) to have
products of the manufacturers for which theythe right (and trained) talent and basic tools to
either rep or distribute.successfully penetrate the market. They also
At this point, companies will strategize andneed to determine with whom they will align
brainstorm to determine how best to go tothemselves (e.g., manufacturer, rep, etc.).
market. This is where the wants vs. needs comeExtensive market research will have to be done
into play. All companies would like the luxury ofto ensure a successful venture. The days are
having (and affording) the best salespeople in theirgone for reckless exploratory missions that fail
markets. However, it brings up those simplemiserably. However, these days are ripe for
questions such as 'how much can we afford?',diversifying in new projects.
'what are our realistic short-term and long-termHaving the right talented people is the key to any
goals?' and 'what is our payback period orsuccessful business model. The days of
return-on-investment (ROI)?'speculative hires are over. Companies are not as
Let's take an example on the manufacturer side:willing to take chances on unproven talent. This
Company X is considering entering a new marketmakes it difficult for people from outside of our
with a great product. Things that they take intoindustry to break in and have a chance for
account are marketing costs, manufacturingsuccess. Just a short while ago, hiring someone
processes, training, possibly new personnel,simply to 'take them off the street' was fairly
amongst others. In order to achieve a realisticcommon. Today, that same person must be able
ROI, they need to decide what basic andto bring something worthwhile and, in some cases
cost-effective items are crucial to success. Indramatic, to the party. Again, it comes down to
years past, large manufacturers would spare noROI; how fast will a company get their money
expense to promote a new line in order to getback and start making money for their part in a
the word out. That is mostly in the past withbusiness decision?
companies cutting back on the budgets. CompanyFor another perspective, in baseball, did the
X wants (read: fantasizes about) a hugeYankees need to spend staggering amounts of
advertising campaign blitz to share the newmoney to be the best team in baseball? Did they
information. But they decide that what they reallywant to do everything they could to win the
need (read: settle for) is a basic marketing planWorld Series? The answer is yes to both. They
with samples sent out to their salespeople andwanted to win and they knew what they needed
reps.in order to achieve that. Their wants vs. needs
Agency Y, on the Rep/Agency side, is alwayswere apparent. They acted on available resources
looking to increase their visibility of lines with theand took advantage of that. Even if one is not a
'A' & 'B' manufacturers; which are moreYankees fan, we can still learn something from
recognized in their territory. Agency Y's wants vs.them.
needs for their business is that they want toJust like a certain youngster that I know who
have the 'A' lines, but they realize that they needwants the latest (and biggest selling of all time)
to take care of the lines that they have. In thatvideogame, is unhappy about the negative
30-day business model, no agency can afford todecision recently given that it is not a need but a
do a poor or lackluster job as some did in thewant. Hopefully he will realize at a young age that
past. Past performance and reputation willin real life, in reverence to The Rolling Stones,
determine if they are considered for future linesmuch is the same as in business in that we can't
down the road.always get what we want.