2nd Quadrant Channels

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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

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

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