Apply Fast Actions
The more efficient and responsive a firm is in enforcing its actions in the gray market; the easier it will be to control them. Firstly, high responsiveness results in a cause and effect relation between the gray market sales and their consequences. Secondly, a speedy reaction implies that the participator will have much less time to reap the benefits associated with gray market payoffs.
A speedy response is only possible through the creation of efficient company processes and structures. This can be ensured by developing internal processes and by empowering specific managers to take relevant actions. Such a structure calls for a clear chain of command.
While certain organizations are now creating specific managerial positions to deal with gray markets, there are others that rely on training programs so as to promote further understanding companywide and to develop accepted metrics to reach unanimous solutions. Companies can also establish dedicated audit teams which work independently from marketing and sales groups to identify unusual or foreign sale patterns.
Lastly, " actions " imply that the company is able to implement the most appropriate degree of punishments for gray market participants. Charge backs or fines are one of the most common ways to deter such dealers. In order to maintain strict control over distribution partners and their abidance to the company policies, some firms also withhold certain rewards, withdraw allowances or sometimes lessen the same in terms of reduced discounts.
References: http:// www. researchomatic. com / the-Impact-Of-Grey-Markets-On-The- International-Market-Pricing-Decision-77502. html