Marketing Management Notes: Troubled Channel Incentives

With the evaluation of process indicators, it is easy to appear falsification, the agent complains that “the birds that will be called have food to eat”; with the results indicators, it is easy to form a uniform. After the two adjustments, why are the agents still unable to convince them?

【phenomenon】

Q companies have more than 300 prefecture-level agents in the country. Each year, more than a dozen channel management systems must be formulated, the core of which is the channel incentive policy, which has a significant impact on sales.

After the position of the marketing center Z, he proposed a “special support-type reward policy” – treating different agents across the country, depending on market potential, competitive situation, agent advertising and promotion plan investment amount, and the amount varies from region to region. Support, from a few thousand to hundreds of thousands.

Due to the different situations in various places, the agents expressed their determination and plans to the company at the beginning of the year. In the case that it is impossible to accurately predict the annual sales of each region, Z Director can only determine how much money the company invests in each region based on subjective feelings.

"The birds that will be called have food to eat", which aroused the strong dissatisfaction of the channel agents. The areas that did not receive support kept complaining, and the areas that received support were too supportive. The company has invested nearly 10 million yuan in unprecedented costs, but in exchange for the large-scale negative completion of the agents, complaints.

This year became the "Waterloo" in the history of Q enterprise sales, the task was frustrated, the cost exceeded the standard, and the sales situation turned sharply.

In the second year, in order to reverse the passive situation, the marketing center learned the lessons of failure and launched the “rebate-type reward policy” – the company no longer supports the regional fees in advance, and always speaks the actual performance of the whole year, giving different sales levels. Reward rewards.

However, such a monotonous policy has become rigid and has not considered the specific circumstances of some special markets, which has triggered a collective protest by the top 20 sales agents.

They believe that "there is no output without investment", and the strength of the region is not enough for the regions with fierce competition! The market advertising and promotion expenses are all paid by the agents. It is an irresponsible attitude for the company to wait for the profit of the fishermen at the end of the year.

The negative of the big agents directly affects the confidence of the small and medium agents. Q corporate sales fell again.

The channel incentive policy is the focus of all issues, and both policies make the agents very troublesome.

If the enterprise does not spend less money, it will intensify the contradiction. What should we do?

Use process-oriented policies with caution

Q companies rely on the "special support policy" launched in the past, which is actually a "process-oriented" policy, which should be used with caution in marketing management.

The difference between process orientation and outcome orientation is the difference in judging criteria.

For Q companies, where should the limited marketing expenses go?

The criteria for judging cannot rely on the formalism of slogans and shouting slogans, because the areas that depict the “grand blueprint” are supported by the company, and those areas that are obscure and hard-working will be left out.

This kind of cost support orientation will encourage more and more channel networks to “sit and talk”, and because the factors are too much and arbitrarily too much, the lower level can't help management, it is easy to put the contradictions in the director, making the managers feel guilty. Press the hoist to float the scoop.

“There is no good result without a good process”, which is one of the fundamental reasons why many managers adopt process-oriented assessment. They stubbornly believe that as long as all the key points in the process are taken into account, the ideal result will emerge.

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