Marketing Presented by Channel Management Professionals 2 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 3 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 4 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 5 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 6 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 7 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 8 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 9 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 10 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 11 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
12 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 13 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 14 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 15 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 16 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 17 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 18 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: 19 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 20 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: 21 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. 22 Summary and Discussion The Roots
The Gray Zone The Gap The Borders Where does the team fall on this functional continuum? 23 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?