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Basics of channel MDF

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Basics of channel MDF and channel Coop Programs

Basics of channel MDF and channel Coop Programs

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  • 1. 18 November 2009
    Vaughn Aust
    William Gilsing
    The Basics of MDF & Co-Op Programs
  • 2. Agenda
    Why joint marketing and sales campaigns?
    Why do vendors fund partner marketing and sales campaigns?
    What are MDF and co-op funds—and how do they differ?
    What are best practices in MDF/co-op programs?
    Why do partners not fully utilize MDF and/or co-op funds?
    How can you measure the effectiveness of MDF/co-op programs?
    What are the best practices of an effective MDF/co-op program?
    Why hawkeye’s channelMDF solution?
    Why the hawkeye channelMDF solution?
    What tools are available to promote the channelMDF solution?
    2
    Agenda
    © 2009 hawkeye, all rights reserved.
  • 3. Why do vendors fund partner marketing and sales campaigns?
    Joint campaigns grow business through the channel
    3
    Why joint marketing and sales campaigns?
    © 2009 hawkeye, all rights reserved.
    MDF/Co-Op Spend
    Nearly 60% of vendors spend at least 5% of their marketing budgets on MDF/co-op programs
    Partners contribute 4% of their marketing budgets to MDF/co-op programs
  • 4. What are MDF and co-op funds—and how do they differ?
    Funds differ by partner type and objective
    Market Development Funds (MDF): distributed to partners in advance of sales
    Ideal for partners with a services business model who “push” products through channel; specify brand, develop markets, and grow business
    Co-op (Cooperative) Funds: distributed to partners based on % of trailing sales
    Ideal for partners who fulfill demand and “pull” products through channel; do not specify brand or sell services
    © 2009 hawkeye, all rights reserved.
    Why joint marketing and sales campaigns?
    Service Partners
    Consult, Design, Implement
    PUSH ABILITY
    Mixed Model
    Transactions + Services
    “VAR”
    Fulfillment Partners
    Transaction, Volume
    PULL REQUIREMENT
    From a legal standpoint, vendors must account for the use of funds and abide by anti-trust and other legislation under the Fair Trade Practices Act (FASB) and Robinson-Patman Act. Discrimination may result in 3x damage penalties.
    4
  • 5. Why do channel partners not fully utilize MDF/co-op funds?
    By some estimates, as much as 50% of all potential funds go unused
    5
    What are best practices in MDF/co-op funds?
    © 2009 hawkeye, all rights reserved.
    Why do funds go unused?
    Unfamiliarity/unaware
    Complexities, administrative burdens
    Processes that do not engender trust
    Long delays in approvals and payment
    What do partners want in MDF/co-op programs?
    Clear processes with simple rules
    Speedy payments—
    30 days or less
    Online status/tracking and updates
    Pay claims in cash, not credit
    Greater flexibility for activities—
    trust the partner to know their customers
    and how to market to them
    Vertical-friendly options
    Solution-friendly options
    Most partners are involved in more than one program and some in as many as a dozen; with each program, the administrative burden grows.
    Partners want to easily apply for funds—and receive payments quickly
    “Simplifying the tool is the best way.
    I suggest having someone who knows nothing about marketing or co-op try to work the tool and see what difficulty that person has.”
    –Partner
  • 6. How can you measure the effectiveness of MDF/co-op programs?
    Use solid, consistent metrics to measure performance
    6
    © 2009 hawkeye, all rights reserved.
    What are best practices in MDF/co-op funds?
  • 7. What are best practices in MDF/co-op programs?
    Eliminate complexities—and foster relationships of mutual trust
    7
    © 2009 hawkeye, all rights reserved.
    Make programs easy to use
    Clear, concise program guidelines that can be downloaded, printed and saved
    Integration with other systems—business planning tools, collateral builders
    Offer pre-approved activities for quick deployment and pay-outs—”Campaign in a Box”
    Easy access to customer support
    Streamline documentation
    Deliver a collaborative, transparent process
    Online tools—to track status of approvals and payouts
    Online account statements—to view available funds and historical usage data
    Be competitive
    Be aware of how much your competitors are paying for similar activities
    Industry Benchmarks
    • Time from claim to payment—
    3 weeks
    • Administrative cost / project—
    $20-$30 per project
    • Program cost vs. total value—
    Less than 1%
    • Fund utilization rate—
    12%-50% industry range
    What are best practices in MDF/co-op funds?
  • 8. What are best practices in MDF/co-op programs?
    8
    © 2009 hawkeye, all rights reserved.
    Sell the program—to the field and partners alike
    Engage channel reps in the process from the start
    Demonstrate the value
    Increase adoption with training, education, incentives
    Proactive, timely, ongoing communication
    Close the loop
    Require that partners estimate ROI when requesting approval for projects
    Map factors to activities and use consistent values to facilitate reporting—drop-down and numerical values
    Requires that partners review and amend ROI estimates as a part of the claiming process
    What are best practices in MDF/co-op funds?
  • 9. Why the hawkeye channelMDF solution?
    Maximize fund utilization—and partner satisfaction
    9
    © 2009 hawkeye, all rights reserved.
    Easily manage funds and approve/deny requests
    Highly flexible, automated workflow
    Online submission and management
    Speed time-to-payment
    Electronic funds distribution
    Simplified compliance with tax and legal regulations
    Easily track and measure program metrics
    Single view of program activity status and reports
    Complete, visible audit trail through integration of all functions—Finance, CAM, Partner, and Administrator
    Quickly deploy the solution—worldwide
    Integration with your existing systems
    Multi-languages, multi-currencies, local business rules
    Why the hawkeye channelMDF solution?
    Powered by hawkeye’s proven channelconduit platform
  • 10. What tools are available to promote the channelMDF solution?
    Integrated tools to generate awareness and demand
    © 2009 hawkeye, all rights reserved.
    Website
    Data Sheet
    White Paper
    Channel Fact Sheet
    Why the hawkeye channelMDF solution?
    … With more on the way!
    10
  • 11. THANK YOU
    © 2009 hawkeye, all rights reserved.

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