This document defines channels as any means that connects a company's products or services to customers. It discusses the importance of channels, providing examples like sales reps, system integrators, and hardware vendors. The document outlines factors for success with channels like management, decision making, and resources. It provides guidance on developing channels through training, marketing initiatives, pricing strategy, and aligning with customers' purchasing processes. Finally, it includes an activity where the reader identifies potential channels for a new product and market, evaluates them, and recommends a channel strategy.

1. Channels “Para multiplicar,…, hay que saber dividir.” (To multiply…one has to know how to divide) -Anonymous

2. 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

4. Define the termChannels

5. State why Channels are important

6. Develop a company Channel strategy

7. Identify three potential types of Channels

8. Develop and apply an evaluation criteria

9. Develop an Action Plan to engage a ChannelGestalt of Sales 2009 Copyright

11. How do they buy?

12. 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

14. A complex sale

15. Several decision makers

16. Long sales cycle

17. Complex functionality

18. Large investment per contract / sale

19. Product and professional services

21. 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

22. 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

23. 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

24. 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

25. 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

26. Channels: Success Factors Management Structured model Effective communications Gestalt of Sales 2009 Copyright

27. 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

28. 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

29. 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

30. We’re almost ready! Gestalt of Sales 2009 Copyright

31. 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

32. Channel Strategy Gestalt of Sales 2009 Copyright Using a template similar to this, develop your company’s Channel Strategy

33. References How to Develop Your Sales Process - Marketing M.O. Gestalt of Sales 2009 Copyright 19