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