Focus Redux!

As online marketing continues to evolve at an exponential pace, many of our customers have become increasingly mesmerized by the sheer number of markets and geographies that have opened up as potential destinations for their products or services. They have every reason to be overwhelmed as the number of opportunities is indeed compelling. That being said, business leaders must still remain cognizant of the fact that regardless of the latest trends or the promise of riches that they extend, focus still wins.

It has always been the case that as companies get a little taste of growth and success, they begin to fantasize about being the next great story on the front of the Business Week, Wired or Entrepreneur magazines. Now with electronic commerce, online advertising and social media marketing as potentially powerful tools at their disposal, executives are jumping at the opportunity to incorporate these tools into their attack and in turn expedite their company's path to glory.

Unfortunately, a funny thing happens along the way; most of these executives (and by extension, their direct reports) become consumed with these tools and ultimately tend to get distracted from maintaining a tight focus on the target markets that brought them success in the first place.

The reality is that customers always have and always will respond more positively to the vendor who specializes in something that is relevant to their unique needs (i.e. industry, geography, etc.). The "trick" with online marketing is to make sure that when and if you do choose to embrace this world, that you do so in a way that remains true to the fundamentals of your business, especially the focus that got you to where you are today.

The Reseller Sales Model

Participating in a Manufacturer/Distribution/Reseller model can be one of the most challenging selling environments. The manufacturer wants exclusivity from their Resellers, but won’t extend exclusivity to the Resellers in return. Distributors break bulk and extend credit, offering little more in terms of value for their margin. And the Resellers, they carry multiple manufacturer lines and don’t fundamentally believe that one manufacturer has the solution to every problem. This tension creates for some interesting selling dynamics.

From the perspective of the OEM (original equipment manufacturer) who owns the R&D, manufacturing and distribution of the product, they view the Reseller’s motives and total sales engagement with skepticism. Somewhat analogous to the feelings experienced by the marathoners in the 1980 Boston Marathon where Rosie Ruiz crossed the finish line shrouded in suspicion. One minute she is with the runners, next minute she’s gone, fast forward to the finish line and she is raising her hands in victory as if she was there the whole time.

In a selling opportunity, Resellers who represent multiple Manufacturer lines are balancing their responsibility for objectivity to the client, while on the other side trying to balance their multiple partnerships and most recent commitments to any one Manufacturer. Because of the conflicted role the Reseller must play, they tend to wander in and out of the selling engagement with the OEM as they try to placate both parties.

To the client, they want to represent the best solution while defensively blocking any other competitors who may represent a similar or a different Manufacturer solution. The competitive threat creates a certain “hedge your bets” behavior that again from the OEM’s perspective looks like disengagement from the selling process. Each Reseller wants to win regardless of the solution, therefore potentially reducing their loyalty to anyone OEM.

To the OEM, it feels like they can never gain exclusive support from a Reseller throughout a sales cycle. To the Reseller, they have to represent the interests of the client and the OEM, while guarding against any flanking competition. For this reason, the Reseller/OEM selling relationship must be clear. Early, open, often and honest communication between both parties is a MUST.

Well defined rules of engagement for the selling motion, pre, progressive and post-sales must be clearly set forth. A Sales Engagement Matrix which outlines the key selling steps and interlock between OEM and Reseller must be in place. Dedicated Sales Liaisons must be employed between both OEM and Reseller for all of the elements of selling – Lead Generation, Collateral, Events, Pre-sales Technical Solution support, Solution Selling, Pricing and Sales Logistics. And lastly, a rationalization of Manufacturer solutions carried by a Reseller - think a 3 circle VEN diagram at the most, where there are competitive and collective solution benefits and technologies.