Sales Distribution “Score Card”
In my series about different sales distribution models, I talked about the direct model (ones own sales force), indirect (reseller/distributors) and direct marketing (emails, bloging, etc) along with their pros and cons (see our blog for more detail, www.firealarmmarketing.com/blog).
Noting that generalization is always dangerous, I will ignore it and state that if one had to list just one key consideration for the three models it would be the following:
Direct model – Leads. Leads, leads – thus marketing is a key functions
Indirect model – Selection of the partner (who sells what, where and their value proposition)
Direct marketing – awareness and compelling messages (marketing again)
NOTE: each model has its issues and as I stated, you must start first with knowing your overall strategy and goals before you even consider which channel(s) to consider. AND if you decide on more then one model, things get very complex very quickly.
In any case, here is a score card that will as a minimum give you some direction on what distribution model(s) you might want to consider.
Score yourself 10 (closest to your needs/goals) to 1(least needed or relevant) for each category.
|
Company |
Score |
|
Well established 10 |
|
|
Specialty/Niche market 5 |
|
|
Startup/unknown 1 |
|
|
Company Strategy |
|
|
Growth- organic/not necessarily profits 10 |
|
|
Financial-margin -profitable 5 |
|
|
New markets- 1 |
|
|
Financial |
|
|
high margins(70%+)/low volume |
|
|
avg margins(40%)/avg volume |
|
|
low margins(30%<)/avg volume |
|
|
low margins/high volume |
|
|
Account Control |
|
|
total control |
|
|
Some visibility |
|
|
Not an issue |
|
|
Product |
|
|
complex or needs explanations |
|
|
multiple options/ products |
|
|
simple or easily understood |
|
|
Service |
|
|
Integral part of the sale |
|
|
service aug product |
|
|
No service or just return |
|
|
Marketing |
|
|
primary function is leads |
|
|
primary function is awareness/message |
|
|
primary function is generating responses |
|
|
Pricing |
|
|
Large ASP or pricing quotes required |
|
|
multiple selections per product |
|
|
Public list price |
|
|
|
|
|
Total Score |
0 |
Here is where it gets tricky! If you scored 80 points plus or minus 5, then you should consider the direct model. If your scored 40 + or – points, then the indirect is your most likely model, but if you got 8 points + or – then the direct marketing model is the most likely choice. But if you are like most and scored in the “grey areas” like 65 points then, sit down, gets lots of paper, block out your calendar and start analyzing the multiple model approach.
Again, thanks for your comments, if we can be of any help regarding channel selection or any marketing or business development issues; give us a call or email us www.firealarmmarketing.com/contact-us/
RHL 9/14/09
