2nd Quadrant Channels
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2nd Quadrant Channels

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The Importance Of Channels: Connecting your company's products with customers

The Importance Of Channels: Connecting your company's products with customers

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  • Can you think of a case where the competitor is a channel? - auto industry - insurance industryHow about Catalog sales? - Victoria’s Secret - Sears - J&R Cigars
  • Provide a sample job description from Korn Ferry
  • Questions for evaluating this activityReasons for this productFactors for selecting the new target market: Why is it attractive?How were the potential channels identified? Individual followed by group activity2/3 minutes prepare individuallyOn your own: Left hand sideGroup of four: right hand side/ presentation by an individual in the team

2nd Quadrant Channels 2nd Quadrant Channels Presentation Transcript

  • Channels
    “Para multiplicar,…,
    hay que saber dividir.”
    (To multiply…one has to know how to divide) -Anonymous
  • Topics
    Definition
    Importance of Channels
    Examples of Channels
    How to select Channels
    Channels: Success Factors
    Developing Channels
    Business Development
    Activity
    Gestalt of Sales
    2009 Copyright
  • Objectives
    • At the end of this session the student should be able to:
    • Define the termChannels
    • State why Channels are important
    • Develop a company Channel strategy
    • Identify three potential types of Channels
    • Develop and apply an evaluation criteria
    • Develop an Action Plan to engage a Channel
    Gestalt of Sales
    2009 Copyright
  • Definition: Channels
    Any means that connects your Company’s
    Product / Service with Customers
    • Who do Customers buy from?
    • How do they buy?
    • Which is best for each type of Customer?
    In the end…customers Choose their preferred channels
    For every problem of the human endeavor, there is always a solution that is neat, simple and…wrong (H. L. Mencken)
    Gestalt of Sales
    2009 Copyright
  • Definition: Channels (Cont’d)
    Gestalt of Sales
    2009 Copyright
    • In the context of:
    • A complex sale
    • Several decision makers
    • Long sales cycle
    • Complex functionality
    • Large investment per contract / sale
    • Product and professional services
    • Business to Business
  • Terminology
    Partners
    Strategic Alliances
    Third Party Resellers
    Distributor
    Wholesaler
    Gestalt of Sales
    2009 Copyright
  • Importance of Channels
    Once considered only for “simple sales”:
    Retail / Consumer
    Commodities
    Product maturity from “direct” => “channels”
    70% of Global organizations
    GNP transacted from 50% => 65% by 2010*
    Gestalt of Sales
    2009 Copyright
  • Importance of Channels(Cont’d)
    Increased Reach:
    Geographical
    Verticals
    Customers
    Establish Market Presence
    Co-marketing
    Web site cross referencing
    Enhance / Build Credibility
    Sponsorship
    Expertise in sector
    Complement the Solution / Offering
    Prime / Subcontractor
    Teaming Agreements
    Full Turn Key projects: H/W, etc.
    Lower Cost of Customer Acquisition / Relationship
    Promotions
    Research
    Sales calls
    Gestalt of Sales
    2009 Copyright
  • Importance of Channels (Cont’d)
    Reduce time to market
    Complementary Resources, vgr:
    Local => Lower Cost
    Special skills
    Infrastructure
    Local presence: Office
    Legal presence:
    Contractual obligation
    Fiscal: taxes (retention – withholdings)
    Post Implementation Support
    Gestalt of Sales
    2009 Copyright
  • Examples of Channels
    Sales Reps. / Agents
    Complementary Solution Partners
    System Integrators
    Consultants
    Hardware Vendors
    VARs
    Existing Customers
    Competitors?
    Web based tools
    Marketing collateral
    Demos / Presentations
    Video-testimonials
    Training
    Direct Sales Force
    Internal and External
    Account Management
    Marketing Department
    Gestalt of Sales
    2009 Copyright
  • How to select Channels
    Which Channels align best with:
    Products?
    Customers’ needs?
    Target market?
    Geography
    Vertical
    Sales Strategy / Method?
    Your company’s vision and commitment to customers?
    Revenue objectives
    Which Channels are :
    Receptive?
    Available?
    Strategic?
    Long term vs. Short term?
    Which Channels:
    Are more profitable?
    Gestalt of Sales
    2009 Copyright
  • Channels: Success Factors
    Management
    Structured model
    Effective communications
    Gestalt of Sales
    2009 Copyright
  • Channels: Success Factors (Cont’d)
    Decision making:
    Speed and clarity
    Milestones
    Contingency plans
    Flexibility:
    Negotiating guidelines
    Receptiveness to alternatives
    Team coordination:
    Communication
    Pre-scheduled events
    Methodology: PM
    Common goals
    Resources:
    Skills
    IT Resources
    Support team
    Gestalt of Sales
    2009 Copyright
    Market Development
    Diversification
    Innovation
    Penetration
  • Developing Channels
    Training / orientation
    Represent your products fairly
    Support adequately
    Go To Market initiatives / campaigns
    Website cross referencing / Trade Shows
    Pricing strategy
    Complementary
    Consistent
    Sales process
    Parallels customers’ purchasing process?
    Gestalt of Sales
    2009 Copyright
  • Business Development
    Alternatively, Channels can be managed by a:
    Business Development Manager, or
    VP of Strategic Alliances, etc.
    Responsibilities:
    Marketing
    Revenue
    Product Development
    Job description: see sample
    Gestalt of Sales
    2009 Copyright
  • We’re almost ready!
    Gestalt of Sales
    2009 Copyright
  • Activity
    Profile your company and products
    Select a product
    Identify a (new) target market
    Develop a channel selection criteria < 5 characteristics
    Identify three (3) potential channels
    Rank the candidates according to the criteria
    Recommendation: Students will make a 5 minute presentation with 5 minutes for Q&A
    Gestalt of Sales
    2009 Copyright
  • Channel Strategy
    Gestalt of Sales
    2009 Copyright
    Using a template similar to this, develop your company’s Channel Strategy
  • References
    How to Develop Your Sales Process - Marketing M.O.
    Gestalt of Sales
    2009 Copyright
    19