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The Evolving Role of Channel


Marketing
Presented by Channel
Management Professionals
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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
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Agenda
An Organizational Perspective
How/where channel marketing reports
Different models and rationales
Pros and cons
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
Partner
Program
Infrastructure
Customized joint
marketing initiatives
for the critical few

Consistent policies,
requirements, benefits
and management
across a broad range
of partners
Channel
Marketing
includes both
responsibilities
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Organization: WHERE Channel Marketing
Reports is a Function of the Companys Ability
to Perform in a Multi-channel Environment
STAGE
I
STAGE II
STAGE III
?
STAGE I - a company has little experience/comfort with channels
STAGE II - multiple channels well-integrated into the companys 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
The three stages of channel organization
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Organization: Stage I
Channels is a Separate
Organization
VP
Marketing
Product
Corporate
VP Sales
Direct
Sales
Sales
Ops
VP Channels*
Channel
Sales
Channel
Marketing
Ops
In the early stages of a companys 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
*In some companies, this title also has responsibility for
Business Development/Alliances
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Organization: Stage II Most
Organizations Quickly Evolve to a Single
Reporting Structure
VP Marketing
Product
Corporate
Channel*
*Communications
only
VP Sales
Sales
Ops
Direct
Sales
Channel
Sales
Channel
Sales
Channel
Marketing**
**strategy, programs,
policies
A single reporting structure:
Promotes channel harmony
Encourages joint planning and teaming
Uses support resources efficiently
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Organization: Stage III Cost is Driving
Channel Marketings Migration to the CMO
CMO
Product
Corporate Channel
VP Sales
Ops Direct Channel
Channel
Strategy
Cost is driving scale and specialization decisions at every level of
the organization. For Channel Marketing, this often means:
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 Marketings
ROOTS are in Communications
THE
ROOTS
Traditional
Deliverables of
Channel
Marketing
Deliverable With help from:
Communications
Newsletter Marketing Communications
Demand and Lead
Generation
Product reviews Product & Solutions Mktng
Analyst briefings Marketing Services
Lead gen programs Marketing & Sales Opns.
Sales Support
Sales literature & fee Product & Solutions Mktng
structure Marketing Services
Solutions reference Product & Solutions Mktng
catalog Marketing Services
Event Planning
Trade show coordination Marketing Communications
Cross channel events Marcom & Strategic Mktng

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The Challenges to the Traditional
Channel Marketing Organization
THE GRAY
ZONE
Increasingly,
Channel
Marketing is
called upon for
some or all of the
following
deliverables:
Market analysis and metrics
Channel satisfaction
Channel economic analysis
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 Historically Performed by:
Market Analysis & Metrics
Competitive channel strategies and tactics
Shared market research
Market Intelligence



Channel Economics
-Functional compensation
-Discounts, rebates, commissions, etc.
-Trade-off analyses (Given equal
effectiveness, which channel category costs
less?)


New function no one has historically done
this, but it is becoming increasingly
important
Channel Satisfaction Surveys

Channel Sales
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The Gray Zone: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function Historically Performed by:
Channel Strategy Definition
(global, recruitment, funding,
differentiators)
Channel Sales
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


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 Historically Performed by:
Reporting
POS (Point of Sale) what specific
customers the channels sell to
Competition
End-user names
Sales Operations
Development of Partner Program
and Components
Training and Development
Product
Sales
Channel managers
Certification program
Technical newsletter
Discount Structure


Sales


Product/sales
Product marketing
Channel sales
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The Gray Zone: Increasingly, Channel
Marketing is Called Upon to Centralize
Activities
Function Historically Performed by:
Channel Relationship
Management
Advisory boards:
Product advisory boards
Partner advisory boards
Executive level boards (senior
execs from both vendor and
partner)
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-to-
Market Functions
End-user segmentation understanding how
target end-user segments purchase software:
Who
What
Why
Where
How
When
Channel Segmentation understanding each
channels underlying business model
buying behavior segmentation
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The Gap: The Importance of End-
User 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
How do they buy
AVL (Approved Vendors List)
VPA
Centralized vs. decentralized

Identify the correct
targets for marketing
messages
Create meaningful
messages
Develop powerful sales
tools for the channel
sales team
ALLOWS
CHANNEL
MARKETING
TO:
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The Gap: The User-Defined Channel
Template Sets the Stage for Channel
Marketings Value-Add
PRE
SALE
SALE
POST
SALE
ON-
GOING
Demo
Needs
assessment
Config
assistance
Bundling
Installation
Terms
Training
Tech
Support

Updates
New product
information
Allows Channel
Marketing to:
Recommend and
develop appropriate
channel selection
metrics
Recommend and
develop appropriate
support programs
Track channel
success by critical
functions
End-User Requirements during the Buying
Process
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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
Resource mix
Margin expectations
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

ALLOWS
CHANNEL
MARKETING
TO:
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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

Sales Operations/Finance

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

THE
BORDERS
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 teams 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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