Channel Marketing —
Definition of B2B Marketing and Sales Terminology
Definition of B2B Marketing and Sales Terminology
Channel Marketing
Channel Marketing describes marketing strategies, educational resources and campaigns which target a company's resellers, system integrators, VARs, independent software vendors, partners, OEMs, private-labelers and distributors. Also known as indirect channels of distribution, channels do not typically include subsidiaries of the company, although there have been numerous exceptions to this (e.g., Sprint/North Supply, a former subsidiary of Nortel Networks).
Channel Marketing is often at odds with a company's marketing through its direct field force and direct-to-customer marketing efforts. Since any of the company's channel members (also called channel players) often carry competing product lines, many companies are exceptionally cautious when sending sales leads to its channel members in fear that the leads may be used to promote competing products that the member may sell.
At the same time, channel members may not trust the company. This is often the case when a company keeps the best customer opportunities for itself ("cherry-picking") and passes along only the dregs.
Two firms that have stellar reputations its strong channel marketing programs — and with it, strong bonds with its channel members — are Microsoft and Cisco. This is due to the overwhelming effort both firms have invested in long-term partnerships. Microsoft, in particular, has built their business alongside its channel members and have demonstrated that its own president is the chief advocate for its channel "partners."
Channel Marketing is often at odds with a company's marketing through its direct field force and direct-to-customer marketing efforts. Since any of the company's channel members (also called channel players) often carry competing product lines, many companies are exceptionally cautious when sending sales leads to its channel members in fear that the leads may be used to promote competing products that the member may sell.
At the same time, channel members may not trust the company. This is often the case when a company keeps the best customer opportunities for itself ("cherry-picking") and passes along only the dregs.
Two firms that have stellar reputations its strong channel marketing programs — and with it, strong bonds with its channel members — are Microsoft and Cisco. This is due to the overwhelming effort both firms have invested in long-term partnerships. Microsoft, in particular, has built their business alongside its channel members and have demonstrated that its own president is the chief advocate for its channel "partners."
