Why Executive Buy-In is Critical for MAP Success
You did it! Another year under your belt and – if it’s been anything like ours – you had quite a ride but ended up better because of it. As we jump into the new year, many of us will make time to take a step back and think about what we can do to optimize our personal and professional lives. For some, that means BIG changes and a complete overhaul of various areas of their lives that can be improved upon. For others, it means making a series of small, corrective changes that – when added up – will make a sizable impact in going forward. For brands with MAP policies, using this time to look within could yield tremendous benefits as you rework processes, implement new technology, and refocus efforts to build upon your brand equity.
When it comes to Minimum Advertised Price (MAP) program management, it’s no secret that the responsibility to execute often falls on brand teams, pricing managers, operations or legal departments. However, one of the most overlooked – and game-changing – factors in MAP success is your top executives’ role in shaping, supporting, and enforcing MAP policies.
Without top-level alignment and commitment, even the most well-crafted MAP programs risk falling short, creating inconsistencies, and straining retailer relationships. In this week’s post, we’ll break down the critical influence executives have in MAP policy creation and why their involvement can make or break the success of your enforcement efforts.
The Executive’s Role in MAP Policy: More Than Just Approval
Over the years, we’ve seen that MAP enforcement isn’t just a pricing issue; it’s a brand equity and revenue protection issue. And brand equity sits squarely in the C-suite’s wheelhouse. Executives can drive MAP adoption across the organization by framing it as a strategic priority, not just another operational task or obligatory expenditure.
Setting the Tone: Executives play a critical role in shaping MAP programs by setting the tone not just for the enforcement team, but for the entire organization. When leadership actively supports and communicates the importance of tightly enforced MAP policies, it frames compliance as a brand protection strategy for the whole company rather than just a sales limitation. This top-down approach signals to internal teams and retail partners that MAP enforcement is essential to maintaining brand value and market positioning.
Resource Allocation: Helping MAP teams garner the needed resources is a way in which executive involvement makes a significant impact. MAP enforcement isn’t just about policy; it requires the right technology, legal guidance, and dedicated staff to identify and address violations swiftly. When executives prioritize these investments, teams are better equipped to monitor and enforce MAP policies effectively, knowing that they have the support of key stakeholders and that they will have the budget and resources needed to execute effectively.
Cross-Department Alignment: Sometimes the view is different from each side of the mountain and different BU’s struggle to agree upon the landscape in front of them. Cross-department alignment is often the missing link in MAP enforcement, and this is where executives can really shine. By breaking down silos between sales, marketing, and e-commerce teams, leadership ensures that MAP efforts are coordinated and consistent across the organization. This holistic approach not only strengthens enforcement but also minimizes internal conflicts and aligns everyone toward the common goal of protecting pricing integrity.
Why MAP Buy-In Matters at the Top
Protecting Brand Value and Reputation: Like it or not, the buck stops at the C-Suite and executives are ultimately responsible for how the brand is perceived. Unauthorized price cutting erodes margins and can devalue the brand in the eyes of consumers and retail partners. A strong MAP policy, supported from the top, sends a clear message that the company is committed to maintaining brand equity.
Ensuring Consistent Enforcement: When MAP enforcement is inconsistent, it damages retailer trust. Retailers are quick to notice when violations by competitors go unaddressed. This can lead to non-compliance across the board, with retailers viewing MAP policies as negotiable. Getting buy-in from your executive team means it becomes a company issue when teams falter, infringements go unaddressed, or retailers are allowed to slide. For those on the enforcement side, nothing is more empowering than knowing that the top brass has your back as you let retailers know that the next step will be order cancelations or an account freeze. Executive oversight ensures that enforcement is impartial and equitable and signals to those outside the organization that your brand means business.
Driving Accountability Across the Organization: Without accountability all the way up the chain, MAP enforcement can be deprioritized or – even worse – take a back seat to sales activities. When executives make MAP compliance a leadership-level KPI, teams are more likely to take it seriously and stay focused on executing with excellence. This top-down accountability ensures that enforcement is consistent and proactive, not reactive.
Key Areas Where Executives Add Value to MAP Policy
Policy Development Executives play a crucial role in defining the scope and language of MAP policies. This includes:
- Approving the list of categories or products covered (and not covered) under MAP.
- Establishing clear penalties for non-compliance.
- Acknowledging and authorizing realistic pathways for flexibility, such as allowances for promotional periods.
Retailer Communication: A MAP policy is only as strong as its communication strategy. When executives are involved in direct conversations with major retailers, it reinforces the seriousness of the initiative. Taking advantage of line reviews, top-to-tops or executive meet and greets is a great way to show retailers and the market that everyone in your organization is on the same page. This can not only prevent friction and encourage buy-in from retail partners, but it can also inspire the market as other executives see that your leadership is truly leading by example.
Legal and Financial Oversight: Executives should work closely with counsel and legal teams to ensure that MAP policies are compliant with antitrust laws and industry regulations. This also means assessing the financial impact of MAP violations and weighing the cost-benefit of pursuing legal action against repeat offenders. As we’ve seen over the years, all it takes is a couple of legal actions to make would-be violators sit up and take notice.
Budget Allocation: Over the years, we’ve heard a common story from would-be customers, and it goes a little something like this: “I would love to buy your solution, but I don’t have a lot of budget and my leadership wants the cheapest solution available.” Here at Pervasive Mind, we are not the most expensive solution out there, but we’re also not for bargain hunters. Our recommendation to all executives reading this, or those communicating openly and directly with leadership, is not to skimp on cheap contracts with pay-as-you-go or monthly models. You will want a partner that is as dedicated to your success as you are and that comes with an investment. As the adage goes, you will get what you pay for so be careful of bargains and discounts.
Common Pitfalls When Executives Are Disengaged
Lack of Consistency: Without executive oversight, enforcement dedication, consistency, and resources may vary between departments. When executives don’t seem to care about MAP enforcement, that impacts how seriously the rest of the company – and your retailers – take your program as well.
Insufficient Resources: Monitoring, enforcement, and the resources to execute properly can be a significant cost to your organization. However, securing the necessary budget becomes a challenge when the company’s approach to MAP enforcement isn’t aligned. Those required to secure the budget second guess themselves and those approving the budget often won’t advocate further for the resources needed.
Retailer Frustration: Executive disengagement doesn’t just affect the internal stakeholders. When retailers see inconsistent enforcement, they may go rogue, try to hide violations, reduce order value/frequency, or even disengage from future MAP discussions.
3 Tactical Steps for Getting Executives Involved
- Show the Data: Present executives with metrics demonstrating the financial impact of MAP violations – both in terms of revenue loss and brand erosion. The team at Pervasive Mind is well-versed in the impact that MAP has on your top and bottom lines so if you need help determining how non-compliance is affecting your organization, just ask.
- Highlight the Competitive Landscape:Don’t hesitate to show how competitors handle MAP enforcement and the consequences of falling behind in compliance efforts. Executives are holding the baton when it comes to maintaining and increasing market share. If your MAP enforcement efforts, or lack thereof, are causing you to lose customers, take a hit on your Net Promoter Score, affecting your customer LTV or any other metric, shout it loudly and often from the mountain tops.
- Frame MAP as a Brand Initiative:Repositioning MAP from a pricing tool and obligatory expense to a brand equity protection strategy will go further than you think. Work to illustrate the negative effects of poor pricing consistency in the market and how that can confuse customers. The world’s top brands take their reputation seriously and work hard to boost their signal-to-noise ratio.
Conclusion
The world’s best brands understand that MAP compliance isn’t just a pricing issue – it’s a strategic initiative that requires leadership from the top. By engaging executives in MAP policy development, enforcement, and communication, brands can protect their pricing integrity, strengthen retailer relationships, and reinforce their market position. It’s not going to be easy and may require some uncomfortable conversations with senior leadership, but they should thank you for your dedication and transparency in the end.
If your executive team hasn’t yet taken an active role in MAP enforcement, now is the time to start. At Pervasive Mind, we work closely with brands to ensure their MAP programs have the executive backing needed for long-term success. If we can help, please reach out. Let’s set the foundation for 2025 together.
