MKS-AchievingChannelExcellence.pdfVIP

Marketing Practice Achieving Channel Excellence The “Ace Up Your Sleeve” in Sales and Marketing Programs Overview As more and more customers base their buying decisions on process bene?ts like convenience and service – and dis- tribution intermediaries become increasingly consolidated and specialized – winning companies are ?nding that the effective design and management of their channel network is essential to achieving pro?tability growth goals. Our work with clients has shown that leading companies can build a sales channel structure that addresses customer needs and takes advantage of market opportunities by engaging in a four- step process: Assess the true cost of working through third-party distributors. Understand the competitive bene?ts a distributor can provide. Design a channel network that uses incentives and support tools to maximize partner performance. Effectively manage the transition to the new channel network. Successfully implemented, this process will create a capability and network that differentiates a company today and provides a basis for competitiveness well into the future. Superior channel management is increasingly important in a wide range of industries. Companies that implement thoughtful channel management programs can reduce their costs and improve their ability to reach and effectively serve key customer groups. Those that fail to introduce new approaches may ?nd themselves lagging behind the competition – and their own pro?tability goals – as new distribution challenges emerge. Two challenges, in particular, are driving the need for better management of third-party partners