Members of the Middle Tennessee Industrial Distributors Assn. have put a new twist on an old marketing idea.

Frustrated by unsuccessful trade shows in recent years, MTIDA members made the first stop on a "customer appreciation tour" in May. The event was designed to promote local distributors to end users in the Nashville region. Plant managers, engineers and purchasing managers from companies in and around Cookeville, Tenn. — about 80 miles east of Nashville — were invited to a barbecue dinner and the chance to learn a bit about their local trading partners.

Tabletop displays of catalogs, line cards and other promotional pieces brought valuable exposure to the participating companies. The event was held at the local Chamber of Commerce.

"The concept was not to get an order, but for the customers to check out the distributors' [capabilities] and to see what everyone has to offer," said MTIDA president John Steinhouse. "It was a way to get customers to look at all the companies involved."

And it was inexpensive, to boot. Members paid $125 to participate in the five-hour event, which drew a crowd of 100 and featured 22 tabletop displays. Steinhouse, who is president of Nashville-based PVF distributor Steinhouse Supply, said he came away with some good prospects. Given the low cost of the event, landing just one of them as a new account would be well worth the effort, Steinhouse said. MTIDA is planning a second event for the fall.

As orders have slowed and budgets have tightened in the last year or so, the need for marketing efforts like these has risen — especially at smaller companies where marketing dollars are hard to come by. Creativity and a "back-to-basics" approach are gaining popularity as distributors try to boost their bottom lines in these slower times.

For many industry-watchers, this trend is long overdue. A recent study by Chicago consulting firm Frank Lynn & Associates, for instance, showed that just one in three distributors has a formal brand strategy. According to the study, brand strategy is "a means to match a company's strengths with the key needs of its various constituencies, especially customers." Developing and executing such a plan, the study pointed out, requires good marketing skills.

Wheeling, Ill.-based Crabtree Industrial Supply is one company that's in tune with this new-found focus on cost-effective, creative marketing.

"You have to work harder today for less money," explained Crabtree president Glenn Korff. "We have to find ways to market without incurring huge costs. Three years ago you could earmark money for marketing — now you can't."

Crabtree Industrial is a six-employee distributorship specializing in cutting tools and related products. Over the last few years, management has tried to re-position the company as a customer-service organization, an aspect that often took a back to seat to its reputation for technical expertise.

Some of Crabtree's most recent efforts to market its service approach are simple, but effective. Customer service reps fax order acknowledgements to customers within an hour of receiving the order, for example. The act is a service for the customer, as well as a way to keep the Crabtree name on the customer's mind. In addition, re-order forms are included with each package that leaves the Crabtree warehouse, another way of reinforcing the company's image and products to existing accounts.

Many companies overlook simple strategies like these, said Robert Segal, a partner with Frank Lynn & Associates. He suggests distributors start by doing just what Crabtree has done: market to people they already know. Just walking through a customer's plant can open up opportunities to sell new products, more expensive products and some of the services the distributor already offers.

"You're there already," Segal said. "The cost is virtually free."

Another basic approach is touting your Web site. Segal said 90 percent of all buyers have access to the Internet these days and use it

to research new products and brands. Distributors should tell customers about their Web site and reinforce the message by displaying the URL on company letterhead, business cards and promotional materials, Segal advised.

Another option is to take advantage of manufacturers' co-op funds. If possible, use some of the funding to host a lunchtime seminar for customers, Segal suggests. Have an "expert" come in to talk about a cutting-edge topic. Send invitations to key accounts and prospects, being careful not to turn the event into a sales pitch, Segal added.

Industrial Supply Co. of Terre Haute, Ind., is another distributor that's taken the simple, straight-forward approach to heart. First and foremost, the firm works closely with its suppliers to market their "partnership" to the end user. Joint sales calls are a common occurrence, for example, and help drive home the message that the distributor is committed to its brands and to solving customers' problems, says vice president and general manager Jack Simpson.

"Our vendors know where they need to go with us, they know our sales reps ... we really work that partnership with our customers," said Simpson.

Other ongoing efforts include direct mail; "counter days" where vendors run new product demos and offer special pricing; and customer appreciation programs, often in conjunction with local college sporting events. Earlier this spring, Industrial Supply Co. was getting ready to launch a virtual tour of its warehouse via the Web. And through its affiliation with a local trade group — the Indiana Industrial Distributors Assn. — the firm has reached out to new customers by partnering with local competitors as a second-tier distributor.

Such relationships are becoming more and more essential in today's business world, said Simpson, as have the many other marketing efforts to which his firm and others are dedicated.

"It's not rocket science," said Simpson. "It's necessary."