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

 

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>