marketing the values to channel partners

Neda PetkovaMBA 525

City University of Seattle

Growth Migration and Collaboration Imperative – ex. Dell

Channel Partners in Marketing

Channel as Collaborator

Channel Partners as Cultural Change Agent

Channel as Creative Ally

Summary

Dell revolutionized the computer industry by introducing the direct model of

distribution Due to Dell‘s famous cut-out-the-middleman

principle, the company was considered an

enemy by the middleman—the resellers. Eventually Dell had to start collaborating with

the middleman. By mid-2007, Dell‘s sales through channels

had risen to account for 15 percent of its overall revenue

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Companies

ConsumersEmployees

Channel partners are Complex entities

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Channel Partners

1)Collaborators

2)Cultural change agents

3)Creative partners

3 roles

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Selecting the Fit

The Body Shop case:1)Roddick was applying her non-

mainstream approach independently

2) When the imperative to grow emerged, she had to move to a multi-channel

approach and find franchisees as her channel partners

3) The Body Shop grew at about 50 percent annually during the first decade of its

existence.

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

1) Both entities in a partnership should ask themselves whether both of them desire

a win-win outcome. 2) They should investigate whether both

business entities uphold a high quality standard

3) Each business entity should identify its potential partner‘s unique values and

determine the compatibility with its own unique values.

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Three key assessments to determine the

potential success of partnership

Own values

Partner’svalues

A : Shared values

Own values

Partner’svalues

A : To understand his/her

values

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Distributing the Story

The company becomes highly dependent on the distributors to market its values, especially

when the company does not communicate directly to the consumers through promotional

mediaSpreading brand stories through channel

partners requires a consistent personal approach.

The innovative distribution model is rooted in the emerging phenomenon of

communitization of consumers

CONSISTENT

YouChannel Partner

Consumer A

Consumer B

Consumer C

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

This growing importance of channel partners demands that companies take more factors into consideration when managing their partners:

1) Companies should understand their products‘ margin contribution, inventory turnaround rate, and general strategic importance to the channel

partners2) Companies should demonstrate genuine concern and active management of the ―selling out process

at the retail level.3) Companies should also care about and understand

their channel partners‘ general impressions and satisfaction

1) Single channel

2) Multi channel

3) Territory-Based channel

4) Integrated Multi channel

Management

integration

Creativity

A : Managed & integrated

partnership

1. Finding right channel partners with shared values

2. Companies should integrate with the partners to bring integrity to the stories

Growth Migration and Collaboration

Channel Partners

Collaborator

Cultural Change Agent

Creative Ally

Summary

Thank You!