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Channel Management
Having channel partners is an effective strategy for organizations seeking global expansion, new market penetration, localized support, and to test markets before large investments. It allows organizations to leverage partners' expertise in areas where they lack in-house knowledge. Common types of channel partners include representatives, agents, resellers, distributors, affiliates, and franchises operating at the city, regional, national, or global level. The key benefits of channel partnerships include increased reach, marketing, branding, sales, support, intelligence, and returns on investment. Managing partnerships requires defining partner levels and roles, marketing strategies, service levels, pricing, promotions, and reviews.
Channel Management
- 2. Having Channel Partnersis highly effective for organizations that are seeking: • Global expansion • New market penetration • Localized support • See response to market before investing on a large scale • Organizations requiring support of business areas where in house expertise do not exists • Legal restrictions • Security concerns • Organizations that do not wish to open their presence for strategic reasons
- 3. • Representative • Agent •Reseller • Value added reseller • Distributor • Affiliate • Franchise • Regional partner – City – Region (National level) – Country – Regional (International) – Global
- 4. • Reach • Marketing •Branding • Sales • Localized support • Language support • Co-investment • Cost benefit analysis • Business process outsourcing • Higher returns • Market coverage • Business intelligence • Competitor intelligence
- 5. • Agent Mix •Marketing Strategies • Service Levels • Coordinating with Agents • Pricing Strategy • Creative Promotions • Monitoring and Reviewing agents
- 6. • Introductory level •Intermediate • Advanced • Pure collaboration • Usually illustrated as: – Bronze channel partner – Sliver channel partner – Gold channel partner – Platinum channel partner – Diamond channel partner – Levels of revenue sharing, responsibilities, commitments and targets vary level to level
- 7. • Role ofPrinciple – Product and Service – Business model – Remuneration – Legal considerations • Role of Channel Partner – Marketing – Sales – Service Delivery – Consumer satisfaction • Role of Consumer – Value for money – Product and services – Satisfaction – Loyalty
- 8. • Generating leadsof Channel Partners (EOI) • Establishing and appointing Channel Partners • Channel activation • Initial probation business activity with Channel • Channel operations • Channel support activities • Channel monitoring • Channel review • Exit / Growth strategy with Channel
- 9. • Marketing Collateralsshould be available • Terms and conditions • Resource planning for peak timings • Trained team and staff • Targets • Expectations • Conflict resolution • Legal issues
- 10. • MARCOMMS. • Online –Portals – Social Media – Directories – Listings – Forums – Email marketing – PPC • Events and exhibitions • Formal EOI advertising • Referrals • Hiring of channel partners • Direct marketing
- 11. • Response toEOI • Initial filtering • Submission of business plans • References • Negotiations • Terms and conditions • Contract • Legal implications • Investment if required • Commencement of Channel Partnership
- 12. • Due diligence •Training and educational qualifications • Market Information • Services offered • Proven track record • References • Portfolio • Clients • Financial stability • Current business model • Feedback from consultants • Agreement to probation period
- 13. • Research • Marketing •Sales • Distribution • Customer Support • Service delivery • System integration • Deployment • Training • Requirement gatherings • Maintenance and support • Project Management
- 14. • Commission basis •Revenue sharing • Retainer • Fixed cost • Target and incentive based • Target and objective based • Localized pricing
- 15. • % ofsales • 100% sales • Beyond 100% • Top performers • Score card method • Monthly point accumulation • Bonus method • Marketing execution • Co branding • Lead sharing • IT support
- 16. • Terms andconditions • Contract and agreement • Exit strategy • Liabilities • Misrepresentation • IPR issues • Legal proceedings • Mutual agreements • Initial setup requirements • Local law and its implications • Refund policy for customers • Guarantee or deposit safety
- 17. • Training anddevelopment • Mock sessions • Tools and kits • Marketing collaterals • IT support and systems • Initial market research • Resource hiring • Resource allocation • Meeting pre-requisites as per business plan • Launch and roll out • Marketing activities • Sales activities • After sales activities
- 18. • Level ofpartnership • Business name and entity • Legal status • Strategy as per stage in product life cycle • Initial promotions • Conferences • Event for launch • Public relations • Media • Advertising • Point of contacts with customers
- 19. • Online – Paid –Free – Social Media – Viral – Website communication – Email marketing • Offline – ATL activities – BTL activities – Events – Direct marketing – Demonstration – Sampling – Co-branding activities
- 20. • Initial packages •Free distribution • Outdoor advertising • Point of contact or sales • KIOSK activity • Main customer spot areas – Malls – Cinemas – Departmental stores – Modern Trade – Event • Referral sales • Lucky draws and competitions
- 21. • Logo • Website •Campaign • Brochures • Flyers • Billboards • Stickers • Give aways • POS materials • X Stands • Insertions • Other forms of outdoor advertising
- 22. • Channel portal •Admin panel • Financial panel • Stock / service panel • Marketing panel • Lead management system • Sales system • Conflict management system • Incentives system • Advertising system • Official communications • Integration with Supply Chain system • ERP integration
- 23. • Resources • Locations •Offices • Organizational structure • Authorized people • Departments • Contact numbers • Record keeping • Invoices • Refunds • Warranties • Complain forms
- 24. • Training kit •Marketing kit • Sales kit • Website domain • Email domain • Store fronts • Email access • Customer database access • Administrative panel • FAQs • Pricing • Product description • Technical specification
- 25. • Region control •Conflict resolution • Misrepresentation • Legal issues • Fraud • Improper execution of business plan • Copyrights and IPR • Channel partner seeking to open same business as principle • Channel partner providing same services to competitor • Cross selling and bundle selling with other products • Fake sales • Blocking opportunity for better channel partners
- 26. • Activation time •Time to first dollar • Meeting targets consistently • Level of customer satisfaction • Complain ratio • Warranty replacement ratio • Profitability • Market share • SLA • Turnaround time • In comparison to competitor’s channel partners • Internal evaluation • Feedback and review
- 27. • Fixed timeinternals • Meetings – Weekly – Monthly – Quarterly – 6 months – Yearly • Rewards and recognitions • Enhancing terms and conditions – % of sharing – Region – Responsibilities – Commitment – Marketing budgets
- 28. • Mutual consent •Legal paper work • Roll back strategy • Disclaimers • Principle assets and properties • Financial settlement • Official announcement • Communication to clients and customers • Future restrictions – Legal agreement – Time restriction – Category restriction – Data restriction
- 29. • Selection • Criteriafor appointment • Level of channel partner • Commitment • Conflict resolution • Mutual growth • Separate specialization areas • Time to first dollar • Level of remuneration and revenues • Profitability • Demand from customers • Marketing • Lucrative growth opportunity over years
- 30. • The IndustryPractices • Roles and Responsibilities • Discounting Model • Terms and conditions • Co-branding and promotions • Special packages • Exit strategy • Marketing the Franchise program • Technical support • Training • Tools and kits • Centralized franchise authority • Should have same sales as in-house
- 31. • 11+ Yearsof experience • 6+ Years of Adjunct Faculty • MBA MIS and Marketing • Proven track record • Specialty – Digital Marketing – E-Commerce – Mobile Apps – Channel Marketing and Partnerships • Contacts and business circles • Team management • Complete digital exposure • Creativity • ROI based planning • Running a personal venture of Buyon.pk