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Value through the channel. mfr. whlslr. custmr. rtlr. Channels Management -- Why Have Them?. Lower Costs Added value to buyers Customer expectations. V1. V1. C1. C1. C2. C2. V2. V2. V3. V3. C3. C3. V4. V4. C4. C4. Channels can create efficiency. Direct: V x C
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Value through the channel mfr whlslr custmr rtlr
Channels Management -- Why Have Them? • Lower Costs • Added value to buyers • Customer expectations
V1 V1 C1 C1 C2 C2 V2 V2 V3 V3 C3 C3 V4 V4 C4 C4 Channels can create efficiency Direct: V x C transactions Via Reseller: V + C transactions RS
Channels Create Value e.g. by • Selecting products; providing assortment • Providing appropriate quantities (“breaking bulk”) • Providing services • Providing availability (carry inventory) • Providing access (location)
Channel Management • Choose Channels that • Reach customers • Provide required value • Have OK power position • Choose partners that are managed well • Support Channels
Channel Support • Help them provide value • Provide desired incentives • Provide expected allowances • Use expected relationship practices • Negotiate with their interests in mind • Build relationship, but keep in perspective
Manage the Relationship • Written contracts so they know what to expect, both positive and negative • Communicate intentions; follow through on promises • Keep perspective: temporary, limited partnerships; not life-long marriages • Communicate extensively
Types of technology channels • Direct sales • OEM • VARs • Systems integrators • Distributors • Retailers
Other channels • Selling partners • ISVs • Partners • Others? • Web / Internet
Questions • What’s different about high tech channels? • How do you evolve channels through TALC? • Distribution pricing?
What’s happening with the Web? • B2B electronic channels -- why? • Types: vertical portals, horizontal portals, barter, auction, • Customer Relationship Management