Who Should Ultimately be Responsible for Local Online Marketing and Advertising in the Channel?
by Frank Reed on May 10th, 2010
We see plenty of relationships between product manufacturers and the dealers that sell their products. As with any relationship there is the good, the bad and the ugly. Most manufacturers and dealers have a healthy dose of respect for each other since there is a very deep reliance on each other for success. This respect, however, doesn’t cloud the fact that when it comes to the true online local advertising of a store and the brand(s) that get showcased there can be some confusion. Unfortunately, this confusion can lead to missed opportunities, bruised egos and badly damaged business relationships.
In any dealer/brand/manufacturer advertising relationship only three options exist for the online marketing and advertising of brands and services at the local level. They are either done completely by the local retailer, completely by the brand or the responsibility is shared. Each has their pitfalls and the best solutions often occur when cooperation rules the day thus keeping control issues to a minimum. Here’s a quick look at the pros and cons of each. Please remember that which side of the aisle you sit on (dealer or manufacturer/brand) may skew how you view these so please comment if you feel differently. Also, this list is by no means all inclusive so please let us know your take.
Retailer only
Pros: “Lives” the local market (presumably), understands the nuances of their customers, controls the interaction and presentation of the brand at the store level, has relationships that close deals
Cons: Cash flow for marketing / advertising investment is uneven, can wield too much ‘power’ in purchasing decision, controls the presentation of the brand at the store level (this could be a con if you are a brand), is spread too thin to have true knowledge of online marketing thus doesn’t engage as effectively
Brand/Manufacturer only
Pros: Is the true expert in telling their brands story, can make pricing decisions that respond to market conditions, can produce new customer centric offerings that further enhance the brand, often has ‘deeper pockets’ for consistent online marketing and advertising
Cons: Doesn’t always trust the dealer to represent their brand prominently, if communication with dealers is sub-par then systems break down quickly, has to manage many dealers and decide best use of existing co-op or MDF monies, sees big picture but has little perception of street level brand perception, doesn’t ‘live’ a market so treats all the same
Retailers and Brands together
Pros: Combined knowledge of local markets and brand strengths makes customer experience better, more can be done with combined funds, relationships are stronger if the chemistry is right, less ‘he said, she said’ on failures and more celebration of combined successes
Cons: Could turn into a power struggle unless the right guidelines and systems are in place, working more closely could reveal true incompatibilities, unless true understanding of each role is established then there could be uneven expectations on either side
So there is no one real good, obvious, clear-cut winner in how the online marketing and advertising relationship between dealers and brands should look. Each situation will dictate what is best suited for success. We can say, however, that regardless of which option is prevalent there needs to be a conduit between dealer and retailer that is more than just a signed piece of paper and some phone calls if there is to be real online marketing space in the local market for brands and local dealers alike.
We have a way to get there so give us a call to learn how to make the local marketing and advertising efforts of brands and dealers alike sing.