Channel Focus Webinar Driving profitability and brand equity through optimized channel marketing spend Jeff Staley Directo...
<ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul>...
Business drivers of co-marketing initiatives Co-Marketing Demand Generation Brand Awareness Partner Loyalty Increased reli...
Funding your channel partners’ marketing activities Extend Your Marketing Reach and  Multiply Your Marketing Dollars… …  b...
Creating win-win situations INCREASE EFFECTIVENESS OF MARKETING SPEND EXPAND MARKETING REACH ENSURE CONSISTENT BRANDING RE...
<ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds  </li></ul...
Challenges in deploying channel marketing funds SUPPLY CHAIN Engineering BRAND OWNER Customer Service Finance/ Legal Sales...
Overcoming the challenges SUPPLY CHAIN Engineering Customer Service Finance/ Legal Sales/ Marketing BRAND OWNER <ul><li>Dr...
Companies need an integrated solution BRAND OWNER PARTNER EXECUTION Execute marketing activity Pay partner for  marketing ...
<ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul>...
Key components of an integrated solution Channel marketing spend <ul><li>Flexible channel marketing modeling </li></ul><ul...
Flexible channel marketing modeling <ul><ul><li>Robust marketing plan hierarchy that models multiple initiative types  </l...
Powerful funds management <ul><ul><li>Flexible funds modeling that simplifies claims management process  </li></ul></ul><u...
Integrated claims management <ul><ul><li>Process-driven claims management from initiative to settlement </li></ul></ul><ul...
End-to-end process collaboration with partners <ul><ul><li>Partner self-service capabilities based on pre-defined template...
Enterprise-wide infrastructure <ul><ul><li>Role-based applications for brand owner and channel partner users </li></ul></u...
<ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul>...
Best practices of leading companies Channel marketing spend <ul><li>1.  Allow flexibility in partner evaluation criteria <...
Best practices of leading companies Channel marketing spend <ul><li>3. Establish a means of modeling and administering com...
Best practices of leading companies Channel marketing spend <ul><li>4. Deploy robust reporting and dashboard capabilities ...
<ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul>...
Key benefits of an integrated solution Channel marketing spend Initiate Co-marketing Programs Approve Activities Reimburse...
Key benefits of an integrated solution Channel marketing spend <ul><li>Top-line Multiplying Effect </li></ul><ul><ul><li>I...
Channel Marketing Spend Value Achievement Through an integrated enterprise solution SUPPLY CHAIN Engineering Customer Serv...
Key points to take away Extend Your Marketing Reach… … and make it easier for partners to do business with you! Manage bud...
Thank you! Jeff Staley SAP America, Inc. 3410 Hillview Avenue Palo Alto, CA  94304  USA T:  +1 510 396 0156 F: +1 650 847 ...
Copyright 2007 SAP AG All rights reserved <ul><li>No part of this publication may be reproduced or transmitted in any form...
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Driving Profitability and Brand Equity Through Optimized Channel Marketing Spend

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As companies seek to increase brand awareness and generate demand in increasingly complex market environments, there is a growing reliance upon channel marketing spend to extend the reach of shrinking marketing budgets.

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Driving Profitability and Brand Equity Through Optimized Channel Marketing Spend

  1. 1. Channel Focus Webinar Driving profitability and brand equity through optimized channel marketing spend Jeff Staley Director, Industry Solutions Group SAP Americas, Inc.
  2. 2. <ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul><ul><li>Key components of an integrated solution </li></ul><ul><li>Best practices of leading companies </li></ul><ul><li>Conclusions </li></ul>Agenda
  3. 3. Business drivers of co-marketing initiatives Co-Marketing Demand Generation Brand Awareness Partner Loyalty Increased reliance on channel partners Complexity of Marketplace Driving New Growth
  4. 4. Funding your channel partners’ marketing activities Extend Your Marketing Reach and Multiply Your Marketing Dollars… … by Leveraging Your Channel Partners Channel Marketing Funds Partner Ad Partner Event Partner Web Site
  5. 5. Creating win-win situations INCREASE EFFECTIVENESS OF MARKETING SPEND EXPAND MARKETING REACH ENSURE CONSISTENT BRANDING REDUCE FRAUDULENT CLAIMS Brand Owner Channel Partner INCREASE OWN MARKETING BUDGET BENEFIT FROM BRAND OWNER’S BRAND IMAGE BENEFIT FROM BRAND OWNER KNOW-HOW QUICK, CONVENIENT REIMBURSEMENT OF MARKETING FUNDS Striking a Balance… TWO BRANDS ARE STRONGER THAN ONE TWICE THE MARKETING BUDGET INCREASE MARKET PENETRATION ALIGNED MARKETING EFFORTS … to Increase Marketing Power:
  6. 6. <ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul><ul><li>Key components of an integrated solution </li></ul><ul><li>Best practices of leading companies </li></ul><ul><li>Conclusions </li></ul>Agenda
  7. 7. Challenges in deploying channel marketing funds SUPPLY CHAIN Engineering BRAND OWNER Customer Service Finance/ Legal Sales/ Marketing <ul><li>Channel marketing effectiveness </li></ul><ul><li>Limited visibility into channel marketing spend </li></ul><ul><li>Poor alignment with corporate objectives </li></ul><ul><li>Liability and compliance management </li></ul><ul><li>Financial regulations </li></ul><ul><li>Fair trade practices </li></ul><ul><li>Transaction and interaction efficiencies </li></ul><ul><li>Cumbersome and inconvenient manual processes </li></ul><ul><li>Inaccurate payments to channel partners </li></ul><ul><li>Partner frustration with slow payment process </li></ul>CHANNEL PARTNERS CHANNEL PARTNERS DIRECT CUSTOMERS DIRECT CUSTOMERS CUSTOMERS
  8. 8. Overcoming the challenges SUPPLY CHAIN Engineering Customer Service Finance/ Legal Sales/ Marketing BRAND OWNER <ul><li>Drive efficiencies </li></ul><ul><li>Increase speed through automation of manual processes </li></ul><ul><li>Achieve operational excellence through end-to-end processes </li></ul><ul><li>Provide convenient self-service features for partners </li></ul><ul><li>Increase effectiveness </li></ul><ul><li>Intelligent planning – derived from the brand’s strategic goals </li></ul><ul><li>Aligned execution – leveraging brand identity and best practices </li></ul><ul><li>Analysis of outcomes – to enable data-based decision making </li></ul><ul><li>Liability and compliance management </li></ul><ul><li>Consistency: Ensure fair treatment of partners </li></ul><ul><li>Transparency: Provide visibility into processes </li></ul><ul><li>Auditability: Drive financial accountability </li></ul>CHANNEL PARTNERS CHANNEL PARTNERS DIRECT CUSTOMERS DIRECT CUSTOMERS CUSTOMERS
  9. 9. Companies need an integrated solution BRAND OWNER PARTNER EXECUTION Execute marketing activity Pay partner for marketing activity Define co-marketing programs & activities FINANCE PLANNING MARKETING Plan budget for co-marketing Allocate funding to partners Determine desired marketing activities Request funding for specific activities Approve activities / requested budgets Reserve funds based on planned activities Accrue funds for partner performance Access tools and download collaterals Submit proof of performance & claim Approve reimbursement Trigger partner payment Actual Partner Performance End-to-end Co-Marketing Process Receive payment Update funds with payout amount
  10. 10. <ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul><ul><li>Key components of an integrated solution </li></ul><ul><li>Best practices of leading companies </li></ul><ul><li>Conclusions </li></ul>Agenda
  11. 11. Key components of an integrated solution Channel marketing spend <ul><li>Flexible channel marketing modeling </li></ul><ul><li>Powerful funds management </li></ul><ul><li>Integrated claims management </li></ul><ul><li>End-to-end process collaboration with partners </li></ul><ul><li>Enterprise-wide infrastructure </li></ul>Analyze Plan Execute
  12. 12. Flexible channel marketing modeling <ul><ul><li>Robust marketing plan hierarchy that models multiple initiative types </li></ul></ul><ul><ul><li>Integration of causals to control partner marketing activities and claim validations </li></ul></ul><ul><ul><li>Automation of program enrollment and fund request processes </li></ul></ul><ul><ul><li>Visibility into all enterprise and channel marketing activities in a marketing calendar </li></ul></ul>Analyze Plan Execute
  13. 13. Powerful funds management <ul><ul><li>Flexible funds modeling that simplifies claims management process </li></ul></ul><ul><ul><li>Rolling-period and fixed budget expiration management </li></ul></ul><ul><ul><li>Initial and recurring budget posting management </li></ul></ul><ul><ul><li>Embedded financial liability management </li></ul></ul><ul><ul><li>Comprehensive fund checkbook </li></ul></ul><ul><ul><li>Collaborative funds management approval processes </li></ul></ul>Analyze Plan Execute
  14. 14. Integrated claims management <ul><ul><li>Process-driven claims management from initiative to settlement </li></ul></ul><ul><ul><li>Availability control for budget flow and partial settlement capabilities </li></ul></ul><ul><ul><li>Budget reservation capabilities to ensure fund availability </li></ul></ul><ul><ul><li>Integrated claim validation management </li></ul></ul><ul><ul><li>Integration with ERP accounting for actual costs and financial liability </li></ul></ul><ul><ul><li>Collaborative approval processes </li></ul></ul>Analyze Plan Execute
  15. 15. End-to-end process collaboration with partners <ul><ul><li>Partner self-service capabilities based on pre-defined templates </li></ul></ul><ul><ul><li>Self-service claims request management </li></ul></ul><ul><ul><li>Self-service budget transfer and extension/renewal requests </li></ul></ul><ul><ul><li>Self-service partner hierarchy structure with embedded funds management </li></ul></ul>Analyze Plan Execute
  16. 16. Enterprise-wide infrastructure <ul><ul><li>Role-based applications for brand owner and channel partner users </li></ul></ul><ul><ul><li>Comprehensive end-user UI personalization capabilities </li></ul></ul><ul><ul><li>Common UI for internal and external users </li></ul></ul><ul><ul><li>Rich UI configuration capabilities </li></ul></ul><ul><ul><li>Powerful data authorization access management </li></ul></ul><ul><ul><li>Clearly defined interfaces to external systems </li></ul></ul>Analyze Plan Execute
  17. 17. <ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul><ul><li>Key components of an integrated solution </li></ul><ul><li>Best practices of leading companies </li></ul><ul><li>Conclusions </li></ul>Agenda
  18. 18. Best practices of leading companies Channel marketing spend <ul><li>1. Allow flexibility in partner evaluation criteria </li></ul><ul><ul><li>Metrics do not always have to be simple revenue calculations, but could be any KPI on a partner scorecard </li></ul></ul><ul><ul><li>Think outside the box when defining partner KPI’s and start with the question, “What do I want my partner to accomplish on my behalf?” </li></ul></ul><ul><li>2. Incorporate full audit capabilities </li></ul><ul><ul><li>Ability to plug financial numbers into the general ledger and ERP system for audit tracking and regulatory compliance purposes </li></ul></ul>
  19. 19. Best practices of leading companies Channel marketing spend <ul><li>3. Establish a means of modeling and administering complex hierarchies </li></ul><ul><ul><li>This applies to complex partner/customer hierarchies as well as fund hierarchies </li></ul></ul><ul><ul><li>The only way to get a true picture of compliance and performance is to model these complex relationships and track data at each level of the hierarchy </li></ul></ul>Channel partner hierarchy
  20. 20. Best practices of leading companies Channel marketing spend <ul><li>4. Deploy robust reporting and dashboard capabilities </li></ul>Channel marketing analysis
  21. 21. <ul><li>Importance of channel marketing spend </li></ul><ul><li>Challenges of deploying channel marketing funds </li></ul><ul><li>Key components of an integrated solution </li></ul><ul><li>Best practices of leading companies </li></ul><ul><li>Conclusions </li></ul>Agenda
  22. 22. Key benefits of an integrated solution Channel marketing spend Initiate Co-marketing Programs Approve Activities Reimburse Partner Request Funded Activities Perform Activities Enter Claim, Proof Of Performance Track Performance Streamline Collaborative Processes… Brand Owner Channel Partner … and Increase Partner Performance <ul><ul><li>Plan and setup your co-marketing programs </li></ul></ul><ul><ul><ul><li>Align your co-marketing strategy with your enterprise marketing strategy </li></ul></ul></ul><ul><ul><ul><li>Define co-marketing funding according to your needs as kick-start or performance-based </li></ul></ul></ul><ul><ul><li>Incorporate your channel partners in co-marketing efforts </li></ul></ul><ul><ul><ul><li>Offer end-to-end self service processes </li></ul></ul></ul><ul><ul><ul><li>Provide reliable and standardized claims processes </li></ul></ul></ul><ul><ul><li>Ensure legal compliance in your co-marketing </li></ul></ul><ul><ul><ul><li>Run your co-marketing activities to ensure equal treatment of equal partners </li></ul></ul></ul><ul><ul><ul><li>Provide transparency into actual fund allocations and uses </li></ul></ul></ul><ul><ul><ul><li>Benefit from standardized integration of processes into financials </li></ul></ul></ul>Receive Payment Approve Claim
  23. 23. Key benefits of an integrated solution Channel marketing spend <ul><li>Top-line Multiplying Effect </li></ul><ul><ul><li>Increased marketing spend </li></ul></ul><ul><ul><li>Incremental revenue due to increased demand and customer penetration </li></ul></ul><ul><li>Bottom-line Savings </li></ul><ul><ul><li>Streamlined, automated operations reduce costs </li></ul></ul><ul><ul><li>Decreased overpayments and fraud </li></ul></ul>Marketing $$ Incremental Revenue Operating Costs Overpayment, Fraud Drive Top-line Growth and Bottom-line Savings
  24. 24. Channel Marketing Spend Value Achievement Through an integrated enterprise solution SUPPLY CHAIN Engineering Customer Service Finance/ Legal Sales/ Marketing BRAND OWNER CHANNEL PARTNERS CHANNEL PARTNERS DIRECT CUSTOMERS DIRECT CUSTOMERS CUSTOMERS <ul><li>(S&OP) Process Integrated Sales and Operations Planning </li></ul><ul><li>Increase Forecast Accuracy & </li></ul><ul><li>Reduce Planning Cycle Time </li></ul><ul><li>Collaborate with Supply Chain Partners and Customers </li></ul><ul><li>Ability to Prioritize Customer Requests & Perform Rapid CTP (Capable to Promise) </li></ul>Increase effectiveness Cherry: Increased partner orders by 300% per year Renasas: Greatly enhanced distributor experience, full automation of channel sales tracking <ul><li>Global Supply Chain Visibility and Control </li></ul><ul><li>Visibility to Manufacturing, Assets, and Quality </li></ul><ul><li>Decision Support for NPI </li></ul><ul><li>Scalability through automated processes </li></ul>Drive efficiencies E-Plus: Administrative costs to be cut 20% within 3 years nVIDIA: Moved from a fully manual partner registration process to a 100% partner self-service model <ul><li>Integrated Risk and Compliance Management </li></ul><ul><li>SOX </li></ul><ul><li>RoHS, WEEE </li></ul><ul><li>Global Trade Compliance Mgmt. </li></ul>Capture significant returns AMD: Projected to capture a 32% internal rate of return (IRR) on their investment through 2010 Conexant: ROI in first 6 months with over $3 million in savings through channel solution
  25. 25. Key points to take away Extend Your Marketing Reach… … and make it easier for partners to do business with you! Manage budgets for channel marketing spend according to marketing strategy Provide holistic view of budget use for all involved stakeholders Deploy fully integrated end-to-end marketing processes with integrated claims and funds management Achieve efficient execution and improve partner satisfaction through automation Reduce fraudulent claims through process transparency and verifications Ensure legal compliance through auditable end-to-end processes
  26. 26. Thank you! Jeff Staley SAP America, Inc. 3410 Hillview Avenue Palo Alto, CA 94304 USA T: +1 510 396 0156 F: +1 650 847 2824 [email_address] www.sap.com
  27. 27. Copyright 2007 SAP AG All rights reserved <ul><li>No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. </li></ul><ul><li>Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. </li></ul><ul><li>SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. </li></ul><ul><li>The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. </li></ul><ul><li>SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. </li></ul><ul><li>The statutory liability for personal injury and defective products is not affected. 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