Is there a word or phrase that really bugs you? Something that whenever you hear it instantly makes your blood pressure go up? For me, it’s when I hear someone refer to their channel Continue reading “Who is the Customer?”

Is there a word or phrase that really bugs you? Something that whenever you hear it instantly makes your blood pressure go up? For me, it’s when I hear someone refer to their channel Continue reading “Who is the Customer?” →
“Make no little plans,” advised Chicago architect and urban planner Daniel Burnham. “They have no magic to stir men’s blood.”
I’m a big fan of requiring distributors and other channel partners to write Continue reading “Make No Small Plans” →
How would you describe your relationship with your channel? Are they important customers whose needs you must meet? Are they small businesses that mostly do what Continue reading “The Partnership Concept” →
If you sold $10M, would you rather have a single $10M reseller or ten $1M resellers? No, it’s not a trick question. Rather, it’s an exercise to explore many of the key issues of channel strategy.
Consider the pros and cons of a concentrated versus a fragmented channel strategy. In the concentrated strategy, the 20:80 rule applies; 20% of your partners deliver 80% of your revenue. Probably 5% of your partners deliver as much as 50% to 60% of sales. The pros of these concentrated structures are:
Power-big partners have significant clout, and frequently can make (unreasonable) demands of suppliers regarding compensation, support, functions performed, etc.On the proverbial other hand, having so much of your revenue in the hands of a small number of big partners raises several negative possibilities:
We could explore the pros and cons of a fragmented strategy, but really these are just the reverse of those discussed above.
Optimizing a channel strategy requires a channel-savvy management team and organization. Typically the company needs to pivot from a fragmented strategy early in a market life cycle to a more concentrated strategy later in the cycle. Many early market leaders are either unaware of this requirement or cannot manage the internal and external change/conflicts. In mature markets, where larger partners tend to dominate, manufacturers need to ramp up their “pull” market activities to build up countervailing power and directly maintain their premium brand messages.
The emergence of tablet computers, most recently highlighted by Apple’s iPad, has significant implications for channel marketing and sales operations, well beyond the computer industry. The form, price, portability, connectivity, and Continue reading “I See a Tablet in Your Future” →
It’s early January, and you are staring at twelve months of open road. No bad first quarter to overcome. No end of year deals to close. No dwindling marketing budget to stretch. Just twelve months Continue reading “The Mathematics of Growth” →