January 2005  

Channel Surfing: Catch the Wave!
By Phil Begley


In the business-to-business world, an effective channel strategy is vital to a company’s performance. Due to the growth of an infinite number of niche markets where products could be sold, business-to-business firms must go to market through distribution, rep firms, value added resellers, consultants, or some combination thereof. They place their brands in the hands of people who don’t work directly for them, they rely on these third parties for the lion’s share of their sales, and then ultimately depend on them in large measure for their success. This is a somewhat risky approach, but necessary for their survival.

The sad truth is that companies talk more about improving channel performance than they act upon it.  There are some significant challenges in moving the channel needle:
  • Channel partners are neither owned nor controlled.  They have their own independent motivations and value propositions.  By definition, some level of control is lost by going to market through an indirect channel; therefore, some level of risk is accrued. 
  • They typically represent multiple companies’ lines of products and services.  No one has the luxury of being the “one and only” of their distributor’s business.  Rather, the typical position is “one among many.”
  • Dealing with multiple channel partners is a complex undertaking in itself.  There is only one certainty: a customized approach is required. 

At VantagePoint, we have found three approaches to be effective in overcoming these challenges:

















Your Brand is Your Identity, but Who’s Defining it?

Happy New Year! It's at the beginning of a new year that we find ourselves with a clean slate.

Although it may not be at the top of your list, I recommend taking some time to evaluate how your corporate brand fared this past year. How well did your company differentiate itself from the competition in light of what is really important to your customer base? Did you clearly articulate your distinctiveness and did your customers experience what you promised?
Helpful Facts:
  • A recent B-to-B survey revealed that “customer acquisition” was named by 28.4% of marketers as their primary goal for 2005. “Driving sales” was cited by 26.8%.
  • According to the same survey, about half (49.7%) of respondents plan to increase their ad budgets in 2005.
  • 68% of survey respondents said they planned to increase online spending in 2005.

Click here for an example of a successful channel communication strategy for building customer mindshare that VantagePoint executed on behalf of one of its clients.