1. Marketing Channels
Making Channel Strategy Work for You
Duane Bailey
@duanebailey
www.linkedin.com/in/duanebailey
dbailey83@verizon.net

2. Agenda
• Marketing Channel Basics
• Why Channels
• Channel Partner Selection
• Channel Management
• Channel Conflict
• Winning with Channel Partners
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3. Marketing Channel Basics
What Is a Marketing Channel?
The external contactual organization which management
operates to achieve its distribution objectives.
4 elements:
1. external – exists outside the firm
2. contactual organization – involved in negotiatory functions
3. management operates – implies oversight by the firm
4. distribution objectives – set goals and objectives
Source:
Marke-ng
Channels:
A
Management
View,
2nd
edi-on,
Bert
Rosenbloom,
New
York,
1983,
pp
4-­‐5
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4. Marketing Channel Basics
Where Do Channels Fit In the Mix?
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5. Marketing Channel Basics
Meet the Players…
Channel
Manager
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6. Marketing Channel Basics
What Is the Role of a Channel Manager?
A leader with responsibility for achieving and balancing the
firm’s and the channel member’s business objectives.
3 elements:
1. leader – requires attributes of trust, communication
2. achieving and balancing – means mutual assured success
3. business objectives – distribution, sales, profitability
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7. Why Channels?
Ask Yourself One Question…
Do you know all your
customers?
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8. Why Channels?
Consider 4 Perspectives.
1
2
3
4
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9. Why Channels?
The Impact of E-commerce.
True or False?
E-commerce has reduced the number of channel
intermediaries, wholesalers and retailers.
False.
New types of intermediaries have evolved.
Can you name some examples?
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10. Channel Partner Selection
What Do You Want to Accomplish?
Hypothetical Territory Goals:
• 10% Year Over Year (YOY) revenue growth
• Drive brand preference
• Position brand for future growth
• Expand reseller focus
• Increase overall customer
satisfaction rate by 5%
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11. Channel Partner Selection
Recruiting Prospects.
What might you look for in a reseller?
• Demonstrated history of sales and customer satisfaction success
• Potential for increased brand consideration and win rates
• Feet on the street
• Skills needed to succeed in growth markets
• Base of competitive customers and a complementary solutions
portfolio
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12. Channel Partner Selection
Recruitment Criteria.
Business Profile:
– Years in business
• Total: 3-5
• Selling Legacy Products: 3-5
• Selling Growth Products: 3-5
– Number of locations: 1-2
– Revenue and profitability (3-year history)
• Total: YOY growth trends; average overall margin of 10-12%
• Products: 70%
• Services: 30%
• Some private-label services and/or willingness to resell manufacturer-
branded services
– Number of employees – indicate # w/ professional certifications
• Total: 20-50
• Sales: 5-10 outside; 2-5 inside
• Technical service and support: 4-6 on-site
• Customer service: 2-5
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13. Channel Partner Selection
Recruitment Criteria (Continued).
Specialization/Target Markets:
• Competitive products and current percentage of revenue
• Specialization/market coverage
– Target vertical markets:
• Enterprise (health care, hospitality, legal, financial services and technology)
• Federal, state and local government
• Education (K-12 or higher)
– Software applications, complementary products
Market Coverage Area:
•
Washington, DC MSA (specifically Northern VA)
Customer Support Plan:
• Includes metrics for measuring customer satisfaction.
• Pre-Sale Support
• Post-Sale Support
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14. Channel Partner Selection
Recruitment Criteria (Continued).
Business Plan and Forecast:
• Year 1 revenue plan (minimum $1M at retail equivalent), includes products
and services
• Additional staffing, with focus on acquiring new skill sets
• Training and development
• Professional certifications
Marketing Plan:
• Promotional plans
• Target Market (Verticals, new vs. base customers)
• Anticipated promotions budget
– Event marketing and demo equipment
• E-commerce/digital marketing strategy (includes social media)
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15. Channel Management
Now What?
“Teach them how to fish.” “Inspect what you expect.”
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16. How can you “teach them to fish?”
• Set expectations
• Know their goals
• Invest time with channel partners
• Deliver on promises
• Provide exceptional service
• Offer partner incentives
• Do joint planning
• Add value to their business
Channel Management
Coaching for Peak Performance.
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17. Channel Management
Coaching for Peak Performance.
How to “inspect what you expect?”
• Joint sales calls
• Online listening
• Customer surveys and reviews
• Special pricing reviews
• Monthly forecasts
– Drive accountability to individual performers
• Quarterly reviews
• Annual reviews/contract renewal
• Channel partner score cards
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18. What are some common causes of channel conflict?
• Lack of trust among channel participants
• Lack of credibility
• Lack of perceived value
• Lack of communications
• Ownership of customer relationships
• Misaligned objectives
Channel Conflict
Sources of Conflict.
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19. What can you do to prevent or resolve channel conflict?
• Know your channel partners…personally
• Treat them with respect, not contempt
• Keep an ongoing dialogue
• Be open and honest
• Stay focused on beating the competition
• Strive for win-win solutions
Channel Conflict
Preventing and Resolving Conflict.
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20. Winning with Channels
T.E.A.M.
Together Everyone
Achieves More.
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21. Winning with Channels
Key Takeaways.
Over the years, I have learned…
• To embrace the channel.
• Channels expand your reach and market share.
• Talking to customers is everyone’s job.
• Channel partners are business owners.
• Trust is your greatest asset.
• Channel conflict is unproductive.
• Multi-channel marketing is fun.
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22. Questions?
Thank you for your time.
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