In today’s market, competition is fierce. Losing sales and market share to competitors is unacceptable. Over the years, I have observed that high-performance manufacturers and service providers consistently execute several key tactics that differentiate them and ensure their presence and market share despite changing market dynamics.
In this article, I have outlined ten of the most important tactics that winning marketers routinely do to maintain their lead. Let these ten tactics serve as a checklist to conduct a self audit of the effectiveness of your sales channel strategy.
Capture and Use Detailed Market Information
A broad and deep understanding of the market is critical to the creation of a sustainable market position. Winning marketers have developed a “map” of their market–including the most actionable segment definition, size/outlook, profit potential, buying behaviors and decision processes, needs/expectations, competitive dynamics and sourcing preferences. The market map provides an objective context for internal discussions regarding strategy alternatives and resource allocation decisions.
Accelerate the Planning Process
Markets are changing faster than ever before and so must your planning process. You cannot get caught in the never-ending cycle of analysis/planning that is characteristic of many organizations today. My view of the planning process of the future is one that is “decision centric” rather than “analysis centric.” The planning process should be designed to use the existing body of knowledge of your organization. Senior managers should be more involved, and involved earlier, in your annual planning process.
Rather than a management meeting to culminate a lengthy analysis conducted by several layers of the organization, the plan should be initiated by senior management. Use the senior management meeting to kick-off the planning process and define the strategy, then let the organization validate the assumptions. The result will be a quicker developed plan, much more reflective of current market reality, and one in which senior managers are much more invested.
Streamline Your Organization for Speed and Flexibility
Effective market management will require speed in decision making and flexibility in action. An organizational structure that supports this will consolidate channel management under one group within the manufacturer’s organization. A single point of contact will lend efficiency to the marketer’s channel relationships. In addition, consolidating all products, programs, and channel relationships will serve to enhance the manufacturer’s market power.
Regain the Power of Your Brand
One of the most vital tools the manufacturer has to retain customer relationships and power in the marketplace is the brand. Therefore, manufacturers will be well served to reinvest in establishing brand value. This will be done by clearly articulating the value your brand stands for and consistently delivering against this value. Brand value will be a powerful tool to secure your market presence. Many channel partners will see the brand value as a deterrent, thus keeping them from switching allegiance to your competitor. Others will see the brand as a clear benefit, causing them to seek you out. The result in either case is more effective “shelf space” in the market.
Win at the Local Level
A local market management philosophy may be the single biggest factor that separates the winners today. Customers have a wider range of channel choices than ever before. Information is more widely available. Customer segments are using these choices and information to evolve their buying behaviors in different ways and at different rates. The result is that the “map” of local markets is likely to vary widely, and the most appropriate channel strategy is likely to vary significantly from market to market.
The successful marketer will recognize these differences. Local market managers will be given the autonomy and flexibility to “customize” the local channel strategy to local conditions. Corporate policies serve as a set of guidelines and programs serve as a menu from which the local manager designs the unique channel mix to optimize share and profitability. Winning marketers have recognized that it often requires different skill sets and compensation for the local market manager operating under this construct versus a traditional sales capacity.
Create Multi-channel Strategies
The channel spectrum that has evolved in most markets is characterized by a wide spectrum of choices, ranging from highly efficient, logistics-oriented channels to highly focused, service-oriented businesses. Few manufacturers can assure optimum market presence by selling via only a single channel type. Market share leaders will include a variety of channels in their mix–and provide a differentiated offering to/through the channel to reflect the unique characteristics, needs, and market value of each channel type utilized.
Make Smart Choices in Channel Selection
One of the key changes occurring in most channel classes is consolidation. It is rare to find the true independent, “mom and pop” operator today. (Even when you do, that mom and pop is often part of a buying group or cooperative to help boost its market power and buying leverage.) Given this consolidation, the manufacturer runs a higher risk than ever before associated with a poor choice of channel partner. There are fewer alternatives to offer you market presence and share if your existing relationship does not pan out.
Winning channel managers address this risk through a more considered approach to channel selection. More time is spent up front defining the ideal characteristics of a channel partner. These characteristics usually include financial and management capabilities to support growth, sales/marketing capability to support manufacturer programs/goals, and operations considerations to help drive efficiency. Potential partners are put through a more rigorous screening process against these characteristics, resulting in fewer mistakes. The partners that are selected participate in a more rigorous planning and review process to help the channel show continuous improvement when measured against the ideal template.
Tackle Channel Conflict Management Strategically
In an environment where multiple channel strategies are the norm, conflict management should be considered an integral part of the strategy planning process. A fair and impartial approach to channel management helps control conflict through a variety of “ground rules”–around access to brand, product authorization, and economics that reflect the role of the channel. Additionally, clear policies and consistent enforcement around issues of authorization, channel standing, management issues and termination provide the most level “playing field” for your channel partners, allowing for effective conflict management.
Use Channel Pricing to Manage Market Complexity
Too often today, manufacturers still base their channel pricing on volume. This approach fails frequently in the environment where the manufacturer utilizes multiple channels with significantly differing business models. The volume-based approach invariably favors the logistics-oriented channel over the service-based models. This leads to destructive channel conflict for the manufacturer by putting relationships with the service-based channel model. Compounding this risk to the manufacturer is the fact that we find service-oriented channels are usually more effective in “creating” customers for the manufacturer, rather than just “harvesting” existing customers.
A more pragmatic approach to channel pricing is a value-based compensation model. This approach places a value on each of the functions the channel performs for the manufacturer, allowing your overall payments to the channel to more directly represent their role in your go-to-market strategy.
fbn
de.wiktionary
dwds
foster.uw
amexglobalbusinesstravel
osb-alliance
marshall.usc
businessschool-berlin
bsr
cbs
foxbusiness
oecd
businessroundtable
business-spotlight
business.ruhr
dw
bahn
ilsos
devbusiness.un
escp
de.wikipedia
springer
it-zoom
xpert-business
strategyzer
wemeanbusinesscoalition
ready
kansas
ilo
giesbusiness.illinois
youthbusiness
businessinternational
vodafone
business.amazon
bingplaces
business.bnl
24orebs
business-administration.unito
latimes
europages
businessschool.luiss
business.aruba
business.nexi
businessdisabilityforum
ntsinformatica
rhsmith.umd
business.sos.ri
barclays
gateway.ohio
sciencebusiness
companies-registerpaniesofficet
businesssearch.ohiosos
americanexpress
money.usnews
bsd.sos
olin.wustl
ecorp.sos.ga
stern.nyu
musicbusinessworldwide
voguebusiness
business24tv
box
ie
bonline.ge
eae
hollywoodreporter
ecija
iese
es.wiktionary
sos.state.us
obsbusiness.school
businessfilings.sc
dor.wa
inboundcycle
apps.ilsos
nyenrode.nl
business.rutgers
sos.la
njportal
nottingham
fsb
dos.pa
visitdubai
gulfbusiness
etisalat.ae
michiganbusiness
terry.uga
mdx.ae
ebrd
grammarly
spectrum
business
business.booking
london
tax.ny
usnews
thehindubusinessline
resources.workable
blogs.lse
zoom.us
templates.office
evernote
imd
bplans
businesswest
british-business-bank
welcometosheffield
standard
bitc
realbusiness
theweek
businessdurham
businesshub.london
businessdesigncentre
durham
business-reporter
cbi
business.panasonic
smallbusinessbritain
scotsman
bgf
ons
businessdebtline
food
three
news.sky
business-live
smallbusiness
cardiff
uk.business.trustpilot
freshbusinessthinking
travelodge
sibgroup
bl
wakefield
britishgas
business-school.ed
vodafone
business.bankofscotland
businessdoctors
torbay
betterbusinessfinance
huffingtonpost
businessweekly
hiscox
parliament
greatbritishbusinessshow
businessdoncaster
ncl
ibe
tsb
princes-trust
smallbusinesscommissioner
bmmagazine
hw
ncsc
o2
abdn
articles.bplans
theargus
surrey
thebusinessdesk
virginmediabusiness
cityoflondon
business-school.exeter
talktalkbusiness
towerhamlets
business-school.open
www1.nyc
haas.berkeley
coindesk
mccombs.utexas
nypost
gsb.stanford
smallbiztrends
ssa
ted
state
business.wisc
msb.georgetown
ohio
pll.harvard
mass
business.pitt
secure.utah
santanderbank
www3b
wbenc
illinois
citizensbank
fedex
sos.oregon
openstax
wisconsin
sos.mo
bls
angliss
hays
jcu
jobst
aldicareers
careers.unsw
students.unimelb
careers.apm
careers.vic
defence
students.mq
careersfortomorrow
salvationarmy
curtin
smartjobs.qld
eastcoastsurveys
scu
federation
employability.uq
cdu.referrals.selectminds
relationshipsvictoria
careers.telstra
carecareers
qld
davidjones
careers.uwa
careersemploymentexpo
wowcareers
employmentinnovations
bunnings
wgtn
careers.reece
anu
murdoch
mitchellshire.vic
careerslesgroup
usc
apsjobs
newcastle
etcltd
careerone
education.nsw
cdu
redcross
careers.jobs.tas
jobsandskills.wa
crownperth
cewa
tafeqld
apprenticeshipcareers
gvwater.vic
legalaid.vic
optus
alia
ey
kofax
best
serco
employmenthero
iccsydney
tal
careersatcouncil
officeworks
audeed
stegbar
home.kpmg
austrade
flexcareers
education.vic
students.flinders
hbf
pwc
csu
mitre10
unimelb.libguides
lwb
missionaustralia
careers.iag
joycareers
careers.bsl
bushheritage
fujitsu
rockingham.wa
thehausgroup
probonoaustralia
sydneyoperahouse
zurich
sonichealthplus
dss
mandurah.wa
allianz
myer
probegroup
ndis
suncorpgroup
tangalooma
coralcoe
anglicarevic
careers.bhp
jobs
careers.google
careers.un
amazon.jobs
careeronestop
petrobras
coet
jobs.gerdau
vale
about.usps
pearson.jobs
recruitment.edmonton
careers.woodplc
hr.osu
va
careers.wa
suny
careers.vtex
utm.utoronto
unfi
follett
floridajobs
lancashire
hr.fiu
careers.slb
utrgv
careers.wiley
cfo.asu
usf
search-careers.gm
careers.twitter
ala
stonybrook
careers.state
wvi
careers.mars
careers.wtwco
jobs.osce
admin.ks
unicef
pgworks
careersterpillar
port
whot
lockheedmartinjobs
lego
jobs.exxonmobil
hr.uoregon
careersearch.stanford
campbellsci
portal.ct
jobs.hilton
3m
edd
humanresources.vermont
jobs-ups
careers.marriott
gojobs
caesars
jobs.engie
philadelphiaeagles
careers.olemiss
hr.psu
artic
mn
guelph
careersrgill
paho
roberthalf
att.jobs
jbs
thebalancecareers
jobs.myflorida
careers.jnj
careers.wvu
careers.juniper
careers.smartrecruiters
path
jobs.fao
humanresources.umn
northwestern
capitalonecareers
unhcr
monster
carle
teamworkonline
careers.linkedin
tn
hr.unc
careers.homedepot
extendedstayamerica
careers.advantagesolutions
maine
hr.princeton
ecommunity
careers.totalenergies
broward
dchr.dc
thekrogerco
hr.upenn
sanjoseca
careers.amtrak
metra
jobbank.gc
dfo-mpo.gc
imperialoil
nrcan.gc
saintjohn
jobs-emplois.ottawa
halifax
skilouise
recruit.uwo
stjohns
niagararegion
jobs.mississauga
uwaterloo
careerslberta
york
yukon
employees.viu
wellington
clarington
cpsbc
niagarafalls
peelregion
umanitoba
unityhealth.to
yorku
www2.bc
loblaw
careers.milton
winnipeg
stcatharines
jobs.bell
brampton
princegeorge
hr.ubc
grey
gm
workbc
burnaby
centrefornewcomers
moncton
saskatoon
carleton
careers.albertahealthservices
uhn
careers.staples
jobs.rogers
jobs.toronto
islandhealth
surrey
jobs.chilliwack
saskjobs
uoguelph
cassdg
jobs.novascotia
corpnadiantire
jobsteriorhealth
salvationarmy
sencanada
reddeer.hgcareers
dryden
saanich
hamiltonhealthsciences
cityofkingston
camh
mun
conestogac
careersloitte
medicinehat
laurentian
brocku
ontario.cmha
sunnybrook
camosun
kamloops
nshealth
coquitlam
markham
london
airdrie
careerstactfc
delta
bluemountain
stonyplain
gov.nt
crd.bc
burlington
kelowna
victoria
careerbuilder
mcgill
whitby
lambtononline
lhsc
wlu
www2.unbc
msvu
humber
mccain