Download The Evolving Role of Channel Marketing

The Evolving Role of Channel
Marketing
Presented by Channel
Management Professionals
1
Objectives
• To help the Channel Marketing team
create a “baseline” for the channel
marketing function
• To identify areas of potential interest and
growth
• To discuss how roles can/will evolve
• To identify how stakeholder requirements
may change
2
Agenda
• An Organizational Perspective
–
–
–
–
How/where channel marketing reports
Different models and rationales
Pro’s and con’s
Trends
• A Functional Map
– The “roots” of channel marketing
– The “gray zone” -- roles and functions that may be migrating to
channel marketing
– The gaps – functions missing in most organizations
– The borders – roles and functions that most likely will never
migrate to channel marketing
• Topics for discussion
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The Two Faces of Channel
Marketing
1- to -1
initiatives
Customized joint
marketing initiatives
for the “critical few”
Channel
Marketing
includes both
responsibilities
Partner
Program
Infrastructure
Consistent policies,
requirements, benefits
and management
across a broad range
of partners
4
Organization: WHERE Channel Marketing
Reports is a Function of the Company’s Ability
to Perform in a Multi-channel Environment
STAGE
I
STAGE II
STAGE III
?
The three stages of channel organization
STAGE I - a company has little experience/comfort with channels
STAGE II - multiple channels well-integrated into the company’s culture
and understanding
STAGE III - cost is a primary driver of all organization design
•move to centralized marketing
•Keep as many customer-facing resources in the sales organization
as possible
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Organization: Stage I –
Channels is a Separate
Organization
VP
Marketing
Product
Corporate
VP Channels*
VP Sales
Direct
Sales
Channel
Sales
Sales
Ops
Channel
Marketing
Ops
*In some companies, this title also has responsibility for
Business Development/Alliances
In the early stages of a company’s marketing through channels, many
organizations give “channels” a separate organization:
•Clean “line of sight” to and from senior management
•Separate commitments to and from product teams
•Ability to develop processes and policies specific to channels
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Organization: Stage II – Most
Organizations Quickly Evolve to a Single
Reporting Structure
VP Sales
VP Marketing
Product
Corporate
Channel*
*Communications
only
A single reporting structure:
•Promotes channel harmony
Sales
Ops
Direct
Sales
Channel
Sales
Channel
Sales
Channel
Marketing**
**strategy, programs,
policies
•Encourages joint planning and teaming
•Uses support resources efficiently
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Organization: Stage III – Cost is Driving
Channel Marketing’s Migration to the CMO
VP Sales
CMO
Product
Corporate
Channel
Ops
Direct
Cost is driving scale and specialization decisions at every level of
the organization. For Channel Marketing, this often means:
Channel
Channel
Strategy
•A change in reporting to the CMO (a relatively new position created
to emphasize the importance of marketing to the organization)
•A renewed emphasis on professional tools and techniques that
have been developed over the past 10 years
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A Typical Channel Marketing
Organization
• Traditional functions within a Channel
Marketing organization:
– Field marketing (for each region)
– Demand creation
– Indirect channel marketing
– Channel development
– Global alliance marketing
– Direct channel marketing
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Functionality: Today Channel Marketing
is Increasingly a Critical Bridge between
the Product and Sales Teams
• The evolution of the channel marketing
function:
THE
ROOTS
THE
GRAY
ZONE
THE
GAP
THE
BORDERS
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Functionality: Channel Marketing’s
ROOTS are in Communications
Deliverable
THE
ROOTS
Traditional
Deliverables of
Channel
Marketing
Communications
•Newsletter
Demand and Lead
Generation
•Product reviews
•Analyst briefings
•Lead gen programs
Sales Support
•Sales literature & fee
structure
•Solutions reference
catalog
Event Planning
•Trade show coordination
•Cross channel events
With help from:
Marketing Communications
Product & Solutions Mktng
Marketing Services
Marketing & Sales Opns.
Product & Solutions Mktng
Marketing Services
Product & Solutions Mktng
Marketing Services
Marketing Communications
Marcom & Strategic Mktng
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The Challenges to the Traditional
Channel Marketing Organization
THE GRAY
ZONE
•Market analysis and metrics
•Channel satisfaction
•Channel economic analysis
Increasingly,
Channel
Marketing is
called upon for
some or all of the
following
deliverables:
•Channel strategy definition
•Process and systems definition and
management
•Reporting infrastructure
development and management
•Development of partner program
and components
•Channel relationship management
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The “Gray Zone”: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function
Market Analysis & Metrics
Historically Performed by:
Market Intelligence
–Competitive channel strategies and tactics
–Shared market research
Channel Economics
-Functional compensation
-Discounts, rebates, commissions, etc.
New function – no one has historically done
this, but it is becoming increasingly
important
-Trade-off analyses (Given equal
effectiveness, which channel category costs
less?)
Channel Satisfaction Surveys
Channel Sales
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The “Gray Zone”: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function
Channel Strategy Definition
(global, recruitment, funding,
differentiators)
Process and Systems
Definition and Management
•Contract management
•Problem escalation procedure
•Conflict management policy
•Qualification process
•Co-op reimbursement system
•MDF management
•PRM system data management
•Partner Hotline
Historically Performed by:
Channel Sales
Product teams and/or channel
sales
Sales operations
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The “Gray Zone”: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function
Reporting
•POS (Point of Sale) – what specific
customers the channels sell to
•Competition
•End-user names
Development of Partner Program
and Components
•Training and Development
–Product
–Sales
–Channel managers
•Certification program
•Technical newsletter
•Discount Structure
Historically Performed by:
Sales Operations
Sales
Product/sales
Product marketing
Channel sales
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The “Gray Zone”: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function
Channel Relationship
Management
•Advisory boards:
–Product advisory boards
–Partner advisory boards
–Executive level boards (senior
execs from both vendor and
partner)
Historically Performed by:
Channel Sales plus:
Product Marketing
Channel Marketing
Channel Marketing
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The Gap: Most Organizations Continue
to Have Two Major Gaps in Their Go-toMarket Functions
• End-user segmentation – understanding how
target end-user segments purchase software:
–
–
–
–
–
–
Who
What
Why
Where
How
When
“buying behavior” segmentation
• Channel Segmentation – understanding each
channel’s underlying business model
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The Gap: The Importance of EndUser Segmentation
•Who is buying
•Decision-makers and influencers
•Why are they buying
•What are they buying
•“product” vs. “solution”
•Front market vs. aftermarket
•When are they buying
•Budget cycles, etc.
•Where are they buying
•Channel preferences
ALLOWS
CHANNEL
MARKETING
TO:
•Identify the correct
targets for marketing
messages
•Create meaningful
messages
•Develop powerful sales
tools for the channel
sales team
•How do they buy
•AVL (Approved Vendors List)
•VPA
•Centralized vs. decentralized
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The Gap: The User-Defined Channel
Template Sets the Stage for Channel
Marketing’s Value-Add
PRE
SALE
SALE
Demo
Needs
assessment
POST
SALE
ONGOING
Bundling
Training
Updates
Installation
Tech
Support
New product
information
Terms
Config
assistance
End-User Requirements during the Buying
Process
Allows Channel
Marketing to:
•Recommend and
develop appropriate
channel selection
metrics
•Recommend and
develop appropriate
support programs
•Track channel
success by critical
functions
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The Gap: The Importance of
Channel Segmentation
•Channel size
•Business mix
•Product mix
•% of revenue from our
product category
•Brand mix
•Genesys share of category
•Customer mix
•Geography served
ALLOWS
CHANNEL
MARKETING
TO:
•Set reasonable
expectations for channel
performance
•Create compelling
channel value
propositions
•Create program
components that add
value to both the
company and the channel
partner
•Resource mix
•Margin expectations
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The Borders: Many Functions Will Probably
NEVER Migrate to Channel Marketing
Function
Owner
• Proactive Channel Recruiting*
•Business plan development and management in
the field*
• Incentive Plan Program participation estimates
•Channel advisory board relationship
management*
Sales
Sales
•Technical support
•On-line order entry and status
•Budget to actual sales measures
•Backlog management process
•Product development
Tech support
Sales operations
Sales/sales operations
Sales operations
Product/Engineering
Sales Operations/Finance
THE
BORDERS
Sales
THE
BORDERS
*Channel Marketing plays a key role in developing the infrastructure to support these activities.
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Summary and Discussion
The Roots
The Gray
Zone
The Gap
The
Borders
Where does the team fall on this functional continuum?
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Questions for Discussion
• Where do you see the team’s role heading:
– How might this impact the skills required of the team
– How might this impact the way the team will need to
work with other parts of the organization
– How will this impact resource requirements? What
needs to be different:
• Today
• In the future
• What are the current strengths of the team?
• What are its greatest challenges?
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