Something that's getting a lot of play in marketing circles these days is your value proposition—understanding it and communicating it effectively. Being clear on who your customers are and who they are not, and understanding the outcome of your customers' experiences, is vital to carving out your place in the market.

This parallels something I've been talking about for years in working with distributors. By definition, distributors are conduits (albeit wrapped with layers of value). When you're a conduit, you transfer something from point A to point B. To prove their conduit is better than another conduit, distributors must convince customers of their value added. That's not really the problem most distributors face.

The real problem is in the definition of being a conduit. Distributors are in the logistics business, which means they move product for their suppliers. Suppliers want volume, customers want cheap prices and distributors want to make money. A trend I have noticed over the years is that distributors have one value proposition for their entire market. This means they have a single go-to-market strategy. The problem with this approach is that it is seller-focused.

Treating everyone the same sounds democratic and fair, but it's mostly fair for you, the supplier, because it means you don't have to do anything special for customers.

I've always believed that distributors must emulate the consumer products marketing approach. Consumer products companies have flanking brands that appeal to narrow slices of their markets. This enables them to serve many segments. This doesn't mean you need more brands or SKUs. It means you need to flex your strategy.

Distributors have a single value proposition and they want every customer to buy it. Unless you're targeting a specific segment, that's not the best approach. You should segment customers by need, not just SIC classification.

Begin by studying customer needs through the prism of complexity or simplicity. Customers with complex needs are more open to value-added solutions. Customers with simple needs want cheap prices. Selling to both segments with the same value proposition is ineffective. You can make money in either segment by adapting your value proposition to the needs of the segment. Some want a value-stripped solution while others want a value-added solution. Being truly customer-focused means adapting to these needs.