marketing the values to channel partners
TRANSCRIPT
Neda PetkovaMBA 525
City University of Seattle
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
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
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Companies
ConsumersEmployees
Channel partners are Complex entities
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Channel Partners
1)Collaborators
2)Cultural change agents
3)Creative partners
3 roles
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Selecting the Fit
The Body Shop case:1)Roddick was applying her non-
mainstream 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.
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
1) 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.
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Three key assessments to determine the
potential success of partnership
Own values
Partner’svalues
A : Shared values
Own values
Partner’svalues
A : To understand his/her
values
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Distributing the Story
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
mediaSpreading brand stories through channel
partners requires a consistent personal approach.
The innovative distribution model is rooted in the emerging phenomenon of
communitization of consumers
CONSISTENT
YouChannel Partner
Consumer A
Consumer B
Consumer C
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
partners2) 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
1) Single channel
2) Multi channel
3) Territory-Based channel
4) Integrated Multi channel
Management
integration
Creativity
A : Managed & integrated
partnership
1. Finding right channel partners with shared values
2. Companies should integrate with the partners to bring integrity to the stories
Growth Migration and Collaboration
Channel Partners
Collaborator
Cultural Change Agent
Creative Ally
Summary
Thank You!