As the distribution business becomes more sophisticated, customers become more demanding and competition increases, the importance of marketing rises to the surface — even in these tough economic times. While many distributors are beginning to realize the importance of marketing themselves to the customer, most still rely on manufacturer support to promote brands and build business with new and existing accounts.

Just what kind of support are distributors getting from their top manufacturers? Are they satisfied with that support? What can be done to improve joint marketing programs? We set out to answer those questions by surveying members of the Power Transmission Distributors Assn. We had a 30 percent response rate to our survey, in which PTDA distributors told us what they want and what they get from their suppliers.

Overall, just half of the distributors surveyed say they are "very satisfied" or "somewhat satisfied" with the level of marketing support their top suppliers provide. Breaking that down further, eight percent say they are "very satisfied," while 42 percent are "somewhat satisfied." Thirty-five percent say they are "somewhat unsatisfied" and 15 percent say they are "not satisfied at all." Comments ranged from dissatisfaction with the quality of information they receive, to frustration over the limited attention they get from suppliers.

"I've not had a lot of manufacturers aggressively offer [marketing programs] as a service," says Steve Philpott, president of Bearing Belt Chain, a small distributor headquartered in Las Vegas, Nev. "I'm quite surprised that, as big as some of these companies are, they don't have it ... They may have it, but it's never shared with us."

Philpott echoes the sentiments of other small PT distributors, who say suppliers tend to pay more attention to the larger, higher volume players when it comes to marketing and promotions. That can be an especially tough problem for small distributors, who traditionally invest less of their own resources in broad marketing programs. Smaller companies need to do more on both sides of the equation, say some respondents.

"I think we're better off if we marry up and work with the manufacturer," says Kevin McCloskey, president of Dodge-Newark Supply Co., Fairfield, N.J. "Though we do need to market our own companies, as well. More money going into marketing, in general, would be better for small distributors."

One of the things McCloskey says he finds frustrating is that some suppliers don't stick with their marketing programs long enough. While that could be a side effect of high employee turnover, it can also come across as a lack of commitment on the supplier's part. McCloskey, and others, say manufacturers also would do well to refine their stated "market potential" for products to realistic levels. He says it's often difficult to meet manufacturers' sales goals because of overestimated claims about market size and timetables for turning market segments over to their products.

McCloskey is quick to point out, however, that many manufacturers are sympathetic to the tough times PT/MC distributors are going through. In fact, he says it's "refreshingly surprising" how understanding many of his suppliers have been.

"They have been very realistic in suspending the goals that we had established," McCloskey says. "No one expected business to fall off."

Dan Kazmierczak, president of Binkelman Corp., an independent distributor based in Toledo, Ohio, agrees that much of the marketing information suppliers generate is unreliable. As a result, Binkelman Corp. primarily relies on its own efforts to market the company, its products and services. The company recently sent out a mailing on a new conveyor belt line and in August was getting ready to shoot a commercial to air locally on Fox Television during this year's football season. The commercial promotes Binkelman Corp. — not a specific product line — and will run regularly right up to the Superbowl in January, when they'll have the last, local 30-second spot before the big game starts.

Kazmierczak says his company understands marketing and promotions. "We create it ourselves because we know what works," he explains. Binkelman Corp. also runs joint marketing programs — but only with select suppliers.

All bets may be off for this year's sales goals, but that doesn't mean marketing efforts should fall by the wayside. Dave Witwer, general manager of Reserve Motion Control Systems in Strongsville, Ohio, points to the growing need for marketing information as the industry becomes more and more competitive. Witwer is a former PTDA president and now sits on the association's marketing committee, a group charged with promoting the association internally and externally. That task includes focusing on distributor and manufacturer marketing efforts.

Abandoning those efforts during tough economic times is one of the worst things a company can do, says Kazmierczak. While cutting back is certainly necessary, he says slashing marketing efforts altogether is a mistake. He points to his company's biggest growth periods — the slowdowns of the early 80s and 90s — as evidence. It was then that Binkelman took marketshare from competitors who had decimated advertising and entertaining budgets.

"We're doing things to put us in a good spot when the economy picks up," he notes. "So, we're still promoting."

Like-minded companies may look to their manufacturer partners for help. So, just what kind of support do PT/MC distributors get from their top suppliers? Product literature is the most common, with 92 percent of respondents saying they receive printed materials to support new and existing products. Sixty percent of respondents say they receive help in the form of customer seminars, and 59 percent say cooperative advertising dollars help with their marketing efforts.

While all of that is good, distributors say they'd like to see more of certain things. Sixty-three percent of respondents say they'd like to see more market research & analysis along with more targeted marketing efforts. Fifty-seven percent say they'd like more sales leads and 55 percent want more competitive product analysis.

Better communication and more teamwork emerged as prominent themes when we asked what manufacturers can do to improve their marketing support to distributors. Here's a look at some distributors' comments:

• A little better communication every once and a while, as well as sharing ideas on any potential new product.
• Collaboration on new product ideas before design; i.e., ask the sales force what they think will sell.
• Develop a cooperative and comprehensive plan, and then do it. Most suppliers never do more than talk about it.
• Develop a marketing plan that includes the distributor.
• Make a real effort to develop teamwork to improve sales.
• More distributor support from sales reps. Demonstrate a desire to work together.
• Mutual market plans and targeted accounts.
• Ninety percent of life is showing up,"—Woody Allen. If more suppliers would visit/call, we could both win! The top suppliers all "show up."
• Share industry-specific information to help build a market plan.
• Treat us more like partners by sharing information.
• Understand that we need strategic market alliances and not just product literature, sales leads, and rebate programs.
• Work closely with distributors to develop a mutually beneficial marketing strategy and plan. More planning is necessary, not just sales calls.

To do some of the things distributors are asking requires the sharing of information. And that often becomes a sticky issue.

We asked distributors about sharing customer and sales information with manufacturers for the purpose of developing more targeted marketing programs. We wanted to find out if they viewed that idea as: a benefit, a threat, both a benefit and a threat, or neither a benefit nor a threat.

Fifty-nine percent of respondents see it as both a benefit and a threat to their business. Another 22 percent see it as a benefit only, 16 percent as a threat only, and three percent as neither a benefit nor a threat.

Despite those mixed feelings, 72 percent of respondents say they share customer/sales information with manufacturers.

Distributors agree that sharing such information can lead to better production cycles, leaner inventories and increased sales. But they also say it's very much a matter of trust.

"There are some manufacturers you wouldn't share with — and there's some information [manufacturers] are never going to get," says Kazmierczak. "But with those [suppliers] that you really trust, it's not an issue."