The document outlines the key trends and factors affecting marketing development funds (MDF) in 2016, emphasizing the shift to discretionary MDF models to increase partner engagement and market share. It identifies eight critical elements for optimizing MDF programs, focusing on program structure, eligibility, and measurement of success. Additionally, it discusses the evolving B2B buyer journey and the importance of adapting marketing strategies to support partners effectively.

1. Give Bad MDF the Boot in 2016
The 8 Key Factors for Maximizing Success

2. 2
Steven Kellam
President
CCI | Global Channel
Management
PRESENTERS
Peter Hornberger
Product Marketing
CCI | Global Channel
Management

3. 3
1. Key Trends
a) Trends for Channel Vendors
b) Trends for Channel Partners
AGENDA
2. Optimizing Your Program
a) The 8 Key Elements
3. Conclusion
a) ROI
b) Big Wins

4. Key Channel Trends

5. 5
Too much red tape:
Jumping through complicated hoops to get the funds
Last minute windfalls:
Vendors release MDFs 2-3 weeks prior to the end of a quarter
Constant changes:
Vendors making last minute modifications to marketing plans
Random rebates:
Program parameters are often complicated and may change frequently
Painful audits:
Performance results and guidelines are often not clearly communicated
PARTNER TREND: MANY ARE FRUSTRATED

6. 6
PARTNER TREND: DEALING WITH NEW BUYER JOURNEY
http://bit.ly/WinningZMOT_CCI

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20% of our clients have moved
100% to discretionary MDF in
the past 24 months.
VENDOR TREND: CHANGE IN FUNDING MODEL
The drive to take market share and get the most out of partners is pushing true MDF over Co-op.
Current Trend
Movement to MDF
(Market Development
Funds)

8. 8
“If I do not have the right
measurements in place by end
of year I am losing my job.”
̶ VP Channel Marketing Fortune 500 tech company
VENDOR TREND: TARGET ON MARKETERS BACKS

9. Optimizing Your Program

10. 10
1. Program Eligibility
2. Program Period
3. How Funds Are Earned
4. Products Promoted
5. Eligible Activities
6. Reimbursement %
7. Marketing Execution
8. Payments
PROGRAM STRUCTURE: KEY ELEMENTS

11. 11
KEY ELEMENT #1
1. Program
Eligibility
Which channel partners will
be offered the program?
Will they be offered the
same program?
Robinson-Patman
Guidelines:
“Competing channel
partners must be
offered similar
programs on a
proportionately
equal basis.”

12. 12
PARTNER ASSESSMENT
Scorecarding is key – you have to know your partners
Partner Assessment Process Phases
Screening
Criteria
Formulate
Questions
Prepare and
Execute
Apply Categories
and Lenses
Define
Participant Pool
Communicate
Results
©Copyright SiriusDecisions Inc. All rights reserved.

13. 13
KEY ELEMENT #2
2. Program Period
Annual or quarterly are
most common
Should align with sales
cycle and product/solution
seasonality
Do you need a lesser or
greater degree of control?

14. 14
PRODUCT SEASONALITY VS. PROGRAM PERIOD

15. 15
KEY ELEMENT #3
3. How Funds
Are Earned
Discretionary or earned
accruals? Combination?
Past sales performance or
anticipated future
performance?

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 Growth oriented – BDF (business
development fund)
 Greater flexibility, no direct link to ‘sell thru’
by a partner
 Flexibility in funding commitments YoY
or QoQ
 Great for changing markets and new
technologies
WHY MDF VS COOP
44%
31%
22%
3%
Discretionary or Accrual?
Discretionary
Accrual per partner
Contractually
committed

17. 17
KEY ELEMENT #4
4. Products Promoted
Will the accrual or
reimbursement level vary with
specific products?
Will program target all
products/solutions or a subset?

18. 18
MULTI-VENDOR SOLUTIONS BECOMING MORE COMMON

19. 19
KEY ELEMENT #5
5. Eligible
Activities
How will the allowed
activities support your go-
to-market strategies?
How will they support your
partners’ go-to-market
strategies?
What behaviors will you
want to ‘reward’?

20. 20
TREND: INCREASE YOUR DIGITAL FOOTPRINT
B2B research is self-directed.
0%
57%
of the way towards
making a decision
before reaching out
to a potential vendor
100%
80%
of the way towards
making a decision
before reaching out
to a potential vendor
Traditional Cloud

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Today’s B2B Buyer
 Lengthening ‘getting to know you’ period (marketing)
 Shortening ‘making a decision’ period (sales)
 Looking for ‘continuum’ vs. ‘episodic’ relationship
Impact on B2B Marketing Tactics
 Marketer’s key role now is to help buyer get smarter
 Content is King, but Context trumps King
MDF Activities to Focus On
 Activities are those that support delivery of ‘thought leadership’
 Key are the vehicles that best support delivery of ‘thought leadership’
THE “CONSUMERIZED” B2B BUYER

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65%
66%
67%
71%
76%
79%
79%
81%
81%
81%
82%
93%
B2B MARKETING TRENDS
B2B Content Marketing Tactic Usage
Social Media Content – other than blogs
Case Studies
Blogs
eNewsletters
In-person Events
Articles on Your Website
Videos
Illustrations/Photos
White Papers
Infographics
Webinars/Webcasts
Online Presentations
2016 B2B Content Marketing Trends—North America: Content Marketing Institute/MarketingProfs
Effectiveness Ratings for B2B Tactics
58%
58%
59%
60%
61%
62%
63%
65%
66%
75%In-person Events
Webinars/Webcasts
Case Studies
White Papers
Videos
Research Reports
eNewsletters
Blogs
Infographics
Online Presentations

23. 23
15%
12%
9%
18%
10%
14%
5%
6%
1%
2% 2%
2%
2%
1%
13% 13% 13%
12%
11%
8%
7% 7%
4%
3% 3%
2%
2%
2%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
2013
2014
CCI TOP ACTIVITIES

24. 24
KEY ELEMENT #6
6. Reimbursement %
To what extent do you want to
reward certain behaviors?
Or discourage others?

25. 25
TACTICAL VS. STRATEGIC METRICS
Awareness Interest Desire Transaction
 Email
 Advertising
 Digital Marketing
 Responders
 Leads
 Customer Event
 Telemarketing
 Attendees
 Appointments
 Demo
 Units Placed
 Proposals
 Opportunities
created
 SPIF/ Sales Incentive
 Units sold
 Sales value
 Opportunities closed
Activities:
Metrics:

26. 26
KEY ELEMENT #7
7. Marketing
Execution
How do you measure success?
Will you provide execution
tools? Or, provide special
incentives for use of your tools?

27. 27
TPMA benefits:
 Protect your brand by ensuring proper campaign protocols
and standards
 Make is easy for the partner to execute marketing
 Provide objective, reliable marketing outcomes data
 Remove need for proof of performance complexity
THE RISE OF THROUGH PARTNER MARKETING AGENCIES

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INTEGRATIONS
Key to measurement
SERVICES
 Follow-the-Sun Support
 Claims Administration
 Global Payments
 Program Administration
SOFTWARE
 Fund Management
 MDF
 Co-op
 Joint Planning
 Incentive Management
 SPIF
 Rebate
CHANNEL WISDOM
 Strategy Best Practices & Benchmarking
 Operational ‘Do’s and Don’ts’
 Global Monetary & Currency Expertise
 Compliance with local laws and customs
TPMAs CRM/PRM

29. 29
KEY ELEMENT #8
8. Payments
Pay Quickly Partner vs Program Centric

30. 30
PAY QUICKLY
Best Practice
 21 days or less
Industry Leaders
 14 days or less
Reinforce the right behaviors

31. Conclusion

32. 32
CHANNEL TREND: CLOSING THE LOOP ON MDF ROI
Partner
Scorecarding &
Benchmarking
Joint Business
Planning
Joint Marketing
Planning &
Approvals
MDF Fund
Allocation &
Distribution
Marketing
Campaign Execution
Deal Registration
Point of Sale Data
Creation, Collection,
Scrubbing
Systems of Record –
Partner Info &
Outcomes
ROI Measurement
& Predictive
Analysis
Partner
Investment
Lifecycle

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1. “Year of the partner” – Truly partner-centric channel vendors who make
partner engagement easy, simple, and rewarding
2. Behavior modification – Vendors who move beyond rewarding based
purely on past revenue performance, to ‘soft targets’ that drive new sets
of behaviors
3. Connected the dots – moved towards measurement, accountability
around ROI
4. Single pane of glass – Created single view for partners and administrators
WHAT THE WINNERS DID IN 2015

34. 34
Steven Kellam
President
CCI | Global Channel Management
steven.kellam@channelmanagement.com
THANK YOU & QUESTIONS
Peter Hornberger
Product Marketing
CCI | Global Channel Management
peter.hornberger@channelmanagement.com