Economists suggest that the sluggish economy may be starting to rebound, but consumers and manufacturers are still cautious, and distributors are optimistically guarded at best.

The economic trend during the past two years has provided most industries with a parade of challenges, causing product distributors to rethink the way they conduct business, as well as with whom they conduct business. Product differentiation has become paramount.

As a result, distributors' promotional efforts are shifting from product lines to brand identity. The objective behind branding is to differentiate a distributor and its supplier from the competition, by creating an image in consumers' minds that branded products provide a compelling value proposition.

A strong value proposition, along with a powerful brand, satisfies a consumer's needs. In addition, it can establish repeat purchases as well as assist in obtaining new business for the distributor.

Each year, distributors spend valuable resources promoting their names and the products they represent. The goal is to influence consumers into making specific purchasing decisions at competitive prices, based on brand-name recognition and, of course, product performance. Ultimately, product quality and reliability protect the brand value that has developed.

The supplier's role in establishing positive brand identity begins with continuous supply chain management improvements from raw material procurement through the delivery of products to the end user, including establishing a carefully selected and nurtured distributor network.

A supplier's reputation and brand images rests, in part, in the hands of its distributors. Therefore, it's imperative that the two share the same business philosophies and affinity for excellence.

Distributors and suppliers must work together to develop marketing strategies aimed at end users that will expand market positions, increase profit margins, and grow each business. Simultaneously, protecting and enhancing brand images need to be primary considerations as marketing initiatives are implemented and evolve.

Testing, certification, coupling, packaging and installation are types of services that differentiate a distributor and its supplier from the competition, while heightening brand awareness.

Distributors can leverage a consumer's purchasing strength by combining quality products with value-added services. One package, one delivery and one invoice from a single source represents a savings to the consumer, which is reflected on their bottom line.

It's essential that distributors conduct business with manufacturers who are committed to customer satisfaction and preserving the integrity of a brand's product portfolio.

The power of brands should not be taken for granted.

They could spell the difference between closing a sale and opening a door for a competitor.