Effectively Marketing General Lines
and Engineered Systems
Significant differences exist in the selling process for the three material handling areas.
By Gary T. Moore
Products and services of the material handling industry can be viewed as falling into three
categories--Forklifts, General Lines and Engineered Systems.
General Lines
General Lines is a term used to describe a range of material handling products including shelving,
racks, loading dock equipment, conveyor, floor handling, work stations and other equipment.
This area is also referred to as Storage & Handling Equipment.
"Allied Equipment" is a traditional term used to describe this area. The use of this term is discouraged, as it implies that the sale and marketing of these products is "allied" or "ancillary" to something else (like lift trucks!). A prerequisite for success with general lines is to give it focus and understand its potential and importance. This can't be done if it is viewed as "allied" to something else. This is one reason why many forklift dealers struggle to be successful with General Lines equipment. They see it as allied to the sale of forklifts, yet they compete with companies who specialize in it and have it as their main focus.
Engineered Systems
Engineered Systems is the term used for the integration of different types of material handling equipment into a "working system" which accomplishes specific customer performance objectives. Engineered Systems often involve detailed layout drawings, product identification information and tracking, precise and multiple equipment, and product interfaces.
Sales and Marketing
The sales and marketing principles for forklifts have been systematized over many years. Forklift manufacturers have often driven these principles and techniques, with customization by individual distributorships. The sales and marketing techniques of General Line products, on the other hand, have largely been developed by independent distributors, often without formalization.
To help distributors and manufacturers of General Lines and Engineered Systems develop effective sales and marketing techniques, it is important to explore customers' perspectives from various areas. Chart 1 contrasts such customer issues as decision influencers, focus drivers, major considerations and justifications across the three major areas of material handling equipment.
The Selling Process
While there are similarities in the characteristics of the selling process for the three material handling areas, there are also significant differences. Chart 2 lists the differences among the three areas.
Implications
Depending on the line, the implications for selling Forklifts, General Line equipment and Engineered Systems vary. For example, management involved in the sale of forklifts must be very deal-oriented, while management strategies are more market-oriented for the sale of general lines. When considering suppliers for an engineered system, performance capability and integration ease are considered. When selling a forklift, the customer often has already made a choice of brand. The resulting implications for salespeople, management and other sales and marketing parameters are shown in Chart 3.
Manufacturers
Traditionally, forklift manufacturers have had exclusive, close relationships with distributors. These manufacturers are market-share driven and provide strong field and service support, as well as training. They provide overall marketing direction and programs to distributors and are involved in aftermarket service issues.
Manufacturers of General Lines are driven by volume and will work the "big jobs." Training is inconsistent and arrangements are often not exclusive. Field support and some layout support is available from manufacturers of General Lines.
Manufacturers of Engineered Systems are job-driven and assume high risk. While not much general field support is available, specific jobs are supported, particularly the layout, technical areas and sales.
Marketing General Lines and Engineered Systems to customers involves many strategies. The products themselves have different characteristics and working with their manufacturers demands different perspectives and a knowledge of the many issues. Working effectively with both manufacturers and customers can be a successful process when the distributor is aware of the issues and their implications, and develops a clear strategy.
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