Channel Marketing – How channel partnerships can benefit two-way

relationships

What is channel in channel marketing?

A channel refers to the mediums

(intermediaries) or a network of partners

through which products are made

available to the final end- user

Channel marketing – Do we need middle men?

In 2000, Bill Gates had predicted the ‘death of the middleman’ in his book, Business at the Speed of Thought.

Without a middle man, it is just half-success for a manufacturer to simply produce the goods at

a reasonable cost!

But in marketing…

Channel marketing – Why we need middle men?

Because...

Goods & services might be of best quality but stands as

useless pieces if they are not available at proper time &

proper place

Hence the channels of distribution (also called middle

men, agents, distribution chains, resellers)

Channel marketing – Types

Direct Indirect

• Direct channels are straightforward

• Includes company’s resources dedicated to selling and supporting your product such as direct sales force, telesales, telemarketing, web site, social media presence etc.

• Includes routes to the customer that leverage resources outside your control as you do not own the resources

• Includes a myriad set of participants who helps to get the right product to the right customer at the right time

Channel Marketing – Forms of Distribution channels

Direct to End Users

The enterprise directly sells to the end user through their sales networks and ideally through their websites or marketing campaigns

Sell through a

dealer network

These dealers in turn sell to the end users. Dealers need to be trained on your offering as this directly impacts the sale and the overall perception of your offering.

Sell through a

value added

reseller

A value added seller packages your offering alongwith other products and services and resells it. This adds value to your offering. Hence it is termed value added reseller.

Channel marketing Strategy – Factors influencing channel selection

Market Factors

Competitors

Product Factors

Nature of Intermediari

es

Life cycle

Selling price/unit

Perishability

Size/weight

Consumer perception

Customer preference

s

Enterprise customers

Geography

Channel Marketing Plan – Identify your right channel partners

This involves a careful analysis of:

the product sold

the competitor

where the product will

apply

The channel partners must believe in the profit of both parties and producers should manage this by marketing their products to the partner in the same way through which they would market it to the customers

Channel Marketing Plan – How to identify your right channel partner

Within channel segments, while partners look similarly based on business model, individual partners within that segment may vary dramatically, based on:

Target market (enterprise, mid-market,

small-medium business [SMB])

Vertical market

expertise (health care, education,

government, etc.)

Geographic presence/reac

h (regional...wor

ldwide)

Routes to market &

distribution strategy

Core competencies

& solution differentiation

Vendor relationships

Revenue/size

Channel Marketing Plan – How to identify your right channel partner

Here is a sample template for you to evaluate your options and choose your partner:

Channel Marketing Plan – Consider the criterions

The price will depend on the environment it is

sold in

The channel that you choose impacts the way a product is sold

The training and advertising needs to be customised to suit the need and taste of the

sellersManagement challenges such as

biased efforts of a large group of partners, revenue tiering &

investments fulfilment of value partners

Channel Marketing Plan – Important action steps!#1

Chart your channels in a Channel Blueprint: A Channel Blueprint is an internal document that allows you to visualize your routes to market in one place. When you can see your entire channel segments in one place, it becomes glaringly obvious, where you are duplicating market penetration strategies and where are the gaps that needs to be filled up

Channel Marketing Plan – Important action steps!#2

As a next step, you need to evaluate the new channels. This helps to improve your channel marketing especially when you are looking at launching something new in the market. Your marketing strategy should match the needs of your end users.

Understand:How do they like to buy?

Do they need specialized training?

Do they need additional products to package it along with your offering?

Does your offering need customization?

Do the end users prefer a personalized service; utilize a dealer in this scenario?

Do they prefer to buy online, if yes develop a website and sell directly?

Channel Marketing Plan – Important action steps!

#3Build your distribution channel – if you’re dealing with more than one partner treat it as a sales process and show the value of the partnership. Train the partners consistently and support them in increasing sales.

#4Minimize pricing conflicts: if you use multiple channels, pricing is a common conflict that can hamper your entire strategy, understand concerns and reach consensus.

#5 Drive revenue through your channel partners just as you would service your best customers, work with them closely and optimise returns.

Channel Marketing Plan – Important action steps!

#6 Test your strategy: Run different promotions and discover which one works best in the market.

#7Segment the products available to partners in each channel: If you have a wide-ranging product catalogue, cluster it into segments. This is a great multi-channel strategy. It helps to drive action based on the nature of the product/service.

#8 Create Tiered Partner Programs: Instead of just one program for resellers and partners create different tiers for each channel partner that has special incentives and perks. The tiers can be based on the overall sales volume, customer enquiries and other quantifiable metrics.

Channel Marketing Plan – The art of maintaining channel relationships!• Treat your partners as

an extension of your sales force

• Invest in maintaining relationships

• Consider fewer partners who sing your praises

• and sell confidently, unlike disgruntled partners

• Finally strike a final consensus with channel partners is just the first step

• Ensure that their needs are addressed

If you want to learn more about Channel Marketing …

Visit our site: to know the right tactics of Channel Marketing, all power-packed in this whole book! Explore a little more.

And that’s not all!