This document discusses the importance of channel partners for companies and outlines different roles they can play. It notes that while Dell originally used a direct sales model, it later had to collaborate with resellers who became important channels. Channel partners are complex entities comprising companies, employees, and consumers. They can serve as collaborators, cultural change agents, and creative partners. When selecting partners, companies should assess shared values and standards. The document also discusses how companies must carefully manage partner relationships and integrate with partners to consistently distribute their brand stories and values.

1. Neda Petkova
MBA 525
City University of Seattle

2.  Growth Migration and Collaboration
Imperative – ex. Dell
 Channel Partners in Marketing
 Channel as
Collaborator
 Channel Partners as Cultural Change Agent
 Channel as Creative Ally
 Summary

3. Growth
Migration and
Collaboration

Channel
Partners
Dell revolutionized the computer industry
by introducing the direct model of
distribution

Due to Dell‘s famous cut-out-the-middleman
principle, the company was considered an
enemy by the middleman—the resellers.
Eventually Dell had to start collaborating with
the middleman.
 By mid-2007, Dell‘s sales through channels
had risen to account for 15 percent of its
overall revenue
Collaborator
Cultural
Change Agent
Creative Ally
Summary


4. Channel partners are Complex entities
Growth
Migration and
Collaboration
Channel
Partners
Companies
Collaborator
Cultural
Change Agent
Creative Ally
Summary
Employees
Consumers

5. 3 roles
1)Collaborators
Growth
Migration and
Collaboration
Channel
Partners
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
3)Creative
partners
2)Cultural
change agents

6. Selecting the Fit
Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary

7. Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
The Body Shop case:
1)Roddick was applying her nonmainstream approach independently
2) When the imperative to grow emerged,
she had to move to a multi-channel
approach and find franchisees as her
channel partners
3) The Body Shop grew at about 50 percent
annually during the first decade of its
existence.


8. Three key assessments to determine the
potential success of partnership
Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
Both entities in a partnership should ask
themselves whether both of them desire
a win-win outcome.
2) They should investigate whether both
business entities uphold a high quality
standard
3) Each business entity should identify its
potential partner‘s unique values and
determine the compatibility with its own
unique values.
1)

9. Own
values
Partner’s
values
A : Shared values

10. Own
values
Partner’s
values
A : To understand his/her

11. Distributing the Story
Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
The company becomes highly dependent on
the distributors to market its values, especially
when the company does not communicate
directly to the consumers through promotional
media
Spreading brand stories through channel
partners requires a consistent personal
approach.
 The innovative distribution model is rooted
in the emerging phenomenon of
communitization of consumers

12. Consumer A
You
Channel
Partner
Consumer B
Consumer C
CONSISTENT

13. Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
This growing importance of channel partners
demands that companies take more factors into
consideration when managing their partners:
1) Companies should understand their products‘
margin contribution, inventory turnaround rate,
and general strategic importance to the channel
partners
2) Companies should demonstrate genuine concern
and active management of the ―selling out process
at the retail level.
3) Companies should also care about and understand
their channel partners‘ general impressions and
satisfaction

14. 1) Single channel
2) Multi channel
3) Territory-Based channel
4) Integrated Multi channel

15. Management
Creativity
integration
A : Managed & integrated

16. Growth
Migration and
Collaboration
Channel
Partners
Collaborator
Cultural
Change Agent
Creative Ally
Summary
1. Finding right channel
partners with shared
values
2. Companies should
integrate with the
partners to bring
integrity to the stories

17. Thank You!