Value through the channel

1. Value through the channel mfr whlslr custmr rtlr

2. Channels Management -- Why Have Them? • Lower Costs • Added value to buyers • Customer expectations

3. V1 V1 C1 C1 C2 C2 V2 V2 V3 V3 C3 C3 V4 V4 C4 C4 Channels can create efficiency Direct: V x C transactions Via Reseller: V + C transactions RS

4. Channels Create Value e.g. by • Selecting products; providing assortment • Providing appropriate quantities (“breaking bulk”) • Providing services • Providing availability (carry inventory) • Providing access (location)

5. Channel Management • Choose Channels that • Reach customers • Provide required value • Have OK power position • Choose partners that are managed well • Support Channels

6. Channel Support • Help them provide value • Provide desired incentives • Provide expected allowances • Use expected relationship practices • Negotiate with their interests in mind • Build relationship, but keep in perspective

7. Manage the Relationship • Written contracts so they know what to expect, both positive and negative • Communicate intentions; follow through on promises • Keep perspective: temporary, limited partnerships; not life-long marriages • Communicate extensively

8. Types of technology channels • Direct sales • OEM • VARs • Systems integrators • Distributors • Retailers

9. Other channels • Selling partners • ISVs • Partners • Others? • Web / Internet

10. Questions • What’s different about high tech channels? • How do you evolve channels through TALC? • Distribution pricing?

11. What’s happening with the Web? • B2B electronic channels -- why? • Types: vertical portals, horizontal portals, barter, auction, • Customer Relationship Management