Lecture 12: Channel Partners Flashcards
What are 2 primary reasons for indirect distribution?
More Coverage:
- The company needs more feet on the streets in order to get the product out more.
- They are looking to get the product out to as many customers as possible
- They need to people to distribute and sell more cost effectively than they do
More Capability
- When the companies products are better sold as a part of a wider solution/ distribution
What is PMC Alignment? What are the 3 model dimensions that a PMC is made up of (CMP)?
What are the goals of a PMC model?
A PMC is a Product Market Combination. It is a unique combination of a product made for a specific group of customers.
The 3 model dimensions that a PMC is made up of: CMP
- Channel Types
- Retailers/Mass Merchandisers
- Distributors
- Systems Integrators (Sis)
- Service Providers
- OEMs - Customer Segments
- Large Enterprise
- Enterprise
- Mid-Market
- Small - Product segments
- Low, Medium, and High Complexity
The goals of a PMC model is to:
- Be where the customer expects you to be
- Always have the END customer in mind
- Meet revenue objectives
- Meet profitability objectives for you and your partners
- Goal is to be where the customer expects you to be with profitable margins
What is a Coverage Model?
A coverage model
- looks at how to distribute resources against customer segments first
- Layer partner coverage on top segmentation model
- Add programs to assist with partner management
- What types of customers do you need? : Global enterprise, Mid-market, small business, individual
- How many resources can I afford? Where should I place them? How to Scale/leverage?
What is Channel Management
Channel management refers to managing partner relationship and driving partner loyalty through pricing, product access, customer access, and territory access.
What is Execution?
Optimize processes for indirect materials, take cost out model - for partners, build global and regional programs?
What are Vertical Marketing Systems (VMS)?
Vertical Marketing Systems refers to when a company is vertically integrated.
- Multiple different stages of the production and distribution of products are controlled by one company.
- Wholesaler, Retailer, Producer all are unified.
- One channel members owns and/or franchises everyone.
Other ways are known as:
- Corporate owned
- Contractual
- Administered
What are Fulfillment (Volume) Partners and Value Partners?
Fulfillment Partners