Part I: Traditional Marketing Must Change.(Brief Article)

Traditional marketing and selling have dominated the selling process for years. Distributors have succeeded with face-to-face selling, supplemented by subsequent phone orders and walk-in business. Yet today a question hovers in the air: Is this method still viable, or is a major shift underway?

Traditions, including marketing traditions, die hard. Years ago, a sales rep earnestly tried to convince me that making cold calls at businesses "with a full lot" was the secret of success. Perhaps then, but markets and marketing techniques continue to evolve. Distributors have historically enjoyed one strategic marketplace strength -- the ability to produce and to deliver gases along with ancillary services. Has that traditional advantage also begun to erode?

"Gus" Maier, former president of Taylor-Wharton and also of Holox, Inc., Atlanta, GA, is currently a member of the Board of Directors of Valley National Gases and an independent consultant to companies in the gases and distribution industries. Maier thinks that, though much of traditional marketing will remain the same, some significant changes will certainly occur. "The customer remains the key," says Maier. "Sales reps will still make face-to-face sales calls, but changes will come in the process of selling and interacting. Friction between the customer and the distributor must be reduced."

Electronic Communications

Electronic communications can help facilitate the rapid interchange of information. Holox used an EDI system with a local Ford plant to create a special relationship. "Our arrangement was for MRO and small items. We stressed the ease of doing business with us and regardless of their order, we made certain products were immediately available for delivery. We began with 150 items and soon found ourselves working on over 400 products," recalls Maier.

Even in the digital age, service is still king. During the last Christmas season numerous online customers had failed to receive their goods. Those frustrated customers made it clear to e-retailers that old-fashioned infrastructure like warehouses were still necessary.

Methods of Measure