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Study Focus: "FLASHSTUDY #3:
Partnership in the Real World Today"
Undertaken in preparation of NAGASA’s Forum
99 meeting, Robert L. FitzPatrick, of FitzPatrick
Management, Inc., worked with NAGASA staff to develop
a survey looking at the state of partnering in the
Channel today from the viewpoint of the NAGASA membership.
This study provides readers with an in-depth examination
of partnering practices within the graphic arts distribution
arena. Sixty-four percent of the total respondents
were dealers, resellers, or systems integrators, and
50% of the respondents were representative of NAGASA’s
core membership — companies with less than $15
million in annual sales.
| Model |
Dealer
Role |
Manufacturer Role |
Notable |
| Marketing Model |
All marketing,
sales, delivery, installation/ networking,
service, and other functions. Dealer analyzes
customer needs. |
Supply all product to dealer;
customer contact always done in conjunction
with the dealer. |
Manufacturer
is in the background; dealer is paid for
market penetration and not just on sales
volume. |
| Value-Added Model |
Marketing,
sales, delivery, installation/ networking,
service, and other functions. Dealer analyzes
all customer needs. |
Marketing through dealer
and supply product to dealer; customer contact
always done in conjunction with dealer. |
Manufacturer
is in the background; dealer is paid primarily
on sales volume. |
| Limited Distribution Model |
Marketing,
sales, delivery, installation/ networking,
service, and other functions. Dealer analyzes
local and regional customer needs. |
Marketing through dealer
and supply product to dealer; market and
sell direct to national customers only.
Manufacturer analyzes national customer
needs. |
Dealer
carries limited lines; dealer does not try
to switch customers from existing manufacturer
product lines; manufacturer does not try
to sell direct other than to national accounts. |
| Commodity Model |
Minimal
marketing; emphasize sales and delivery
of numerous product lines. Service could
be included. |
Marketing, installation/
networking, service, and other functions.
Manufacturer analyzes customer needs. |
Dealer
and manufacturer share customer mindshare;
dealer remittance based on sales volume. |
| Fulfillment Model |
Warehouse
and fulfill orders as needed. |
Handle marketing, pricing,
rebates, service, and other functions. |
Dealer
is in the background; dealer is paid for
warehousing and delivery functions on a
transaction basis. |
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The third in a series of studies designed to assist
NAGASA members with internal assessments and understanding
and guidance of their channel policies; questions
and issues covered in the study include:
- Definitions of partner ships and alliances.
- Specific activities that indicate the existence
of an effective business partnership.
- The current state of dealer/ manufacturer relationships
throughout the channel.
- Customer relations.
- Barriers affecting successful partnering.
The report also provides insight on ays NAGASA members
can work together and with the Association to improve
business alliances through education and training,
proactive input from end-users, and increased development
of successful dealer/ manufacturer “models.”
(See chart.)
A complimentary issue of “Partnership in the
Real World Today” is available to all NAGASA
members as part of membership services. Additional
copies can be obtained for $10.00 each and non-members
can purchase copies for $30.00. For more information,
contact NAGASA at 202-328-8441 or visit our Web site
at www.nagasa.org.
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The Compass || Summer
1999