What Strategy OEMs Can Follow For Management Of Marketing Distribution Channel?

In the rapidly evolving global marketplace, opportunities are also growing rapidly for OEMs to connect with consumers. In fact, number of methods available in market can be overwhelming. Choosing the most method is the first step for an OEM to manage market perfectly. Generally, each organization has different products and different market approach, but there are many ways through which an organization can optimize the delivery of products to customers. OEMs, however, must first understand the software they can use to implement different marketing techniques.

Direct Channel Marketing

In this type of distribution, an OEM or dealer can integrate electronic parts catalogue software into the existing setup; through which customer can directly provide the product to the end-customers. This will end the need of middleman from the sales and purchase channel. For example, by having an automated solution, an OEM will be able sell parts directly to the end-customers. The OEM will have the power to control the market from a single dashboard and check insights about the product demands in the market. In simple words, we can say that this type of marketing will be better to boost productivity as end-customer will be able to interact with OEM directly.

Indirect Channel Marketing

Commonly OEMs sell products through intermediaries called dealers. The channel for a spare parts manufacturer provide great example. In manual processing OEM, doesn’t sell the product directly to OEM. Instead, OEMs sell through dealers and then dealers make the parts available for customers.

To increase sales, it’s important for OEMs to constantly track different aspects of sales and automate different tasks. This will help you to connect better with the sales reps and you will know the market better. The best way to connect with them is through electronic parts catalogue. With this software onboard, OEMs and dealers will be in a win-win situation as their sales will be maximized and customers will get best services.

Want to increase dealer experience?

Maintaining a relationship with the dealers is essential for OEMs. In many cases, OEMs incentivize dealers with discounts that lead to better profit margins. Some OEMs also work with dealers to develop an exclusive contract for selling parts. There are many options for a successful partnership. However, a parts manager needs to monitor the situation to prevent breakdown in the supply chain. With a good tool, dealers will be able to communicate easily and report issues directly to the OEM, so that it can be resolved on time. For example, news of broken parts received could be reported by the dealer to the OEM directly on the portal with proof. The parts manager could look after the matter instantly to avoid any conflict that will make dealers valued.

Successful marketing channel or technology enables OEMs to deliver their products to end-customers in an effective way. In some cases, these channels are a simple exchange of services between the business and the customer. However, more often, the channel also includes intermediaries. Changes to the product can have a negative or positive ripple effect through the channel due to the intermediaries’ response. Therefore, companies need to put a careful channel management strategy in place.

Well, if you are an OEM and wish to manage your after production scenario, Intellinet has a long range of automated software that can help an OEM in doing so. Feel free to connect with sales team at sales@intellinetsystem.com