| A leading manufacturer has succeeded in binding | | | | This is a very complex question primarily |
| their distribution trading partners more closely to | | | | confronting internationally active companies. |
| the company and in reinforcing their market | | | | Centralised training at the firm's headquarters has |
| position once more, even though this latest | | | | the advantage that highly-specialised staff and all |
| recession has brought sales training into sharp | | | | the products necessary for demonstration |
| focus and has marked the start of many | | | | purposes are available there. In addition, the |
| companies battle for survival. They have | | | | participation of top management in the training |
| accomplished this by drastic cost reductions and a | | | | strengthens motivation. |
| reorganisation of the sales force, the company | | | | Opposed to that as disadvantages are the |
| reacted with their sales team development | | | | substantial travel and accommodation expenses |
| system, a distributor training program. | | | | that usually have to be assumed by the company. |
| The system contains the following points | | | | An extra problem is that the distribution partners |
| Objectives of distributor training: Building up trust | | | | only make half-hearted use of the training as they |
| and motivation in the distributive trade The | | | | infrequently get away from their everyday job. |
| training is intended to make the distributors work | | | | The manufacturer follows a twin-track policy here. |
| more efficiently for the supplier. Questioning | | | | Two to four-day basic training courses take place |
| distributors has shown that the company has | | | | at the company headquarters. The distributors |
| chosen the right route to its intended goal. All the | | | | spend 60% of the available time on theoretical |
| trained distributors stated that their organisational | | | | and 40% on practical instruction. Besides that, the |
| skills had improved. 80% said that training had | | | | company maintains regional training centres in |
| made them better at planning and selling. 50% | | | | Brazil, Japan, Australia, Malaysia and Spain, where |
| were able to polish up their financial know-how. | | | | the subjects of selling technique and planning are |
| Raising turnover Distributors who have a precise | | | | dealt with more intensively. |
| knowledge of their products and markets will also | | | | Who should give training? An internal staff unit is |
| sell more. Even in the trial phase of System, | | | | responsible for developing training concepts and |
| those taking part were already able to increase | | | | contents as well as the management of training. |
| their sales by 102%. | | | | The individual programs are carried out by |
| Methods and contents of distributor training | | | | external trainers. Trainers with practical sales |
| Who should be trained? Not all distribution partners | | | | experience are preferred. They are more |
| are amenable and suited to a training program. | | | | convincing than pure theoreticians, have a feel for |
| Participants were chosen by the manufacturer | | | | the market and bring in more ideas. To stop the |
| according to the following criteria: | | | | signs of strain new trainers are repeatedly being |
| How great is the likelihood that the distribution | | | | utilized. |
| partner will commit themselves fully to the | | | | What methods of training? Techniques are used |
| company? Does the distribution partner possess a | | | | which stimulate the distributors to take an active |
| sufficient financial base to be able to invest the | | | | part: role-playing, video recordings, direct |
| necessary time and the appropriate personnel in | | | | observation. What has proved to be inefficient |
| the training course? | | | | and so has been rejected is boring. A comparison |
| Does the trading partner have a stable | | | | between 'trained' and 'untrained' distributors allows |
| organisational structure? Is the trading partner's | | | | conclusions as to the success of training. |
| home country economically and politically stable? | | | | Monitoring results: The company continually |
| Does the trading partner hold out sufficient | | | | compares the sales results of trained and |
| prospects of growth in their sales, market shares | | | | untrained distributors using the indicators: turnover |
| and margins? | | | | per customer visit, market share, new products |
| What should the contents of training be? Product | | | | as share of turnover and lost order rate (share |
| knowledge: Many managers believe that distributor | | | | of orders that fail to be achieved). |
| training should above all be sales training. They | | | | Concrete proposals for the improvement of |
| forget that a solid knowledge of products is and | | | | training procedures are translated into practice |
| remains the foundation of successful selling! If a | | | | straight away and recognised defects are |
| distributor proves himself incompetent in the | | | | immediately eliminated so as to guarantee the |
| customer's eyes he cannot expect loyalty! | | | | success of training. |
| Selling technique: On this score the manufacturer | | | | Follow-up training It is not enough to invite a |
| transmits know-how in the fields of negotiating | | | | distribution partner to a training course once and |
| tactics, concluding techniques and general sales | | | | then just to 'cross him off'. That is why the |
| management. | | | | manufacturer also offer their distributors the |
| Planning: Products entail enormous transport and | | | | self-monitoring and training program Management |
| storage costs. A sensible system of requirement | | | | Minded Supervision (MMS). MMS enables |
| planning [dictated by plant divisions for materials | | | | distributors to carry out their own sales training |
| and operating supplies] will help to reduce costs | | | | courses for their salespeople and to monitor their |
| here markedly. Where should training take place? | | | | own results. |