Lecture 12: Channel Partners

Question 1

What are 2 primary reasons for indirect distribution?

Answer 1

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

Question 2

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?

Answer 2

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

1. Channel Types
   - Retailers/Mass Merchandisers
   - Distributors
   - Systems Integrators (Sis)
   - Service Providers
   - OEMs
2. Customer Segments
   - Large Enterprise
   - Enterprise
   - Mid-Market
   - Small
3. 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

Question 3

What is a Coverage Model?

Answer 3

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

1. What types of customers do you need? : Global enterprise, Mid-market, small business, individual
2. How many resources can I afford? Where should I place them? How to Scale/leverage?

Question 4

What is Channel Management

Answer 4

Channel management refers to managing partner relationship and driving partner loyalty through pricing, product access, customer access, and territory access.

Question 5

What is Execution?

Answer 5

Optimize processes for indirect materials, take cost out model - for partners, build global and regional programs?

Question 6

What are Vertical Marketing Systems (VMS)?

Answer 6

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

Question 7

What are Fulfillment (Volume) Partners and Value Partners?

Answer 7

Fulfillment Partners