Question

Topic: Research/Metrics

Principal - Distributor - Marketing Budget

Posted by Anonymous on6/7/2004 at 11:04 AM ET 125 Points
What is a regular marketing budget (in percent of net sales) that manufacturer / principal assign to the distributor for marketing purpose? And what percent in regular the distributor is asked to assign for market from its budget?
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RESPONSES

  • Posted byPeter (henna gaijin)on6/7/2004 at 12:11 PM Accepted
    I worked for a Fortune 500 industrial products company with significant distributor channels in the US. Our distributor support was basically:
    - co-op advertising (paying part of the cost of an ad which the distributor was placing in a local media so long as the ad displayed our product prominently)
    - we provided art work for free for use on ads, fliers, etc.
    - we provided display material and counter mats (the plasticy mats you see on the counter of the sales people which are ads) for free
    - we provided literature for free
    ——我们有一个很好的系统,通过我们的网站如果取代te and our customer service where if a customer called on the 800 number, they would get the info for local distributors.

    I don't know what sort of requirements we had on the distributor. I am not sure we required much, but just tried to porovide opportunitites for them to do things with us.
  • Posted byBlaine Wilkersonon6/7/2004 at 6:26 PM Accepted
    There was a similar question a few days ago with some pretty interesting responses. The overall concensus was "it depends".

    Here a link to the thread:

    //www.369da.com/ea/qst_question.asp?qstID=1627#10788

    Good Luck!
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