Question

Topic: Strategy

Bsb -targeting The End Customer Versus The Channel

Posted by kstark5 on 11/2/2008 at 4:17 PM ET 500 Points
I'm facilitating a marketing strategy workshop with a small IT hardware manufacturing client who wants to target a niche market to grow. My belief is they have to analyze their end customer for developing their niche customer strategy but they 100% sell through resellers and distributors and I'm having trouble guiding them to the end customer.

- Do you feel the end purchaser is primarily the target?
- How to reach those end customers if you're way up the chain?

Regards,

Kelly Stark
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RESPONSES

  • Posted by wnelson on 11/2/2008 at 5:18 PM Accepted
    Kelly,

    Jerry is right - you have two "customers" to accommodate. When your channel strategy includes reps and distributors, you have to have a "push" strategy with them and a "pull" strategy with the end customer.

    The push strategy for the reps and distributors includes such things as commission strategies, aiming them at the right end customers with the right products and services, training on unique selling points and how to beat the competition...ultimately, the IT company has to use whatever leverage it can find to "push" the reps and distributors at the end customers.

    In addition, to be effective, the IT company must "pull" customers to the reps and distributors. They have to understand the needs, provide for those needs in products and services, and communicate that they can satisfy those needs better than the competitors. In addition, the IT company has to provide direction for the end users to go to the reps and distributors to satisfy those needs.

    Some of the "pull" strategy can be coop marketing efforts the reps and distributors - for instance, territorialized ad campaigns that have the IT company name as well as the appropriate rep/distributor.

    Channel strategy is very tricky when you have multiple parallel paths in it - like reps who can sell to direct (usually larger) customers and also who direct smaller customers to buy through distributors. Channel conflict must be managed because conflict could disrupt the push strategy.

    I hope this helps.

    Wayde
  • Posted by kstark5 on 11/3/2008 at 4:58 PM Author
    Thanks for these great insights. I am meeting with my client tomorrow and will share this knowledge and see which viewpoint registered most strongly with them. I'll award the points Tuesday and let you know if I got through.

    I'm so glad that I joined this network. It's already paid off for me.

    Kelly
  • Posted by kstark5 on 11/4/2008 at 7:49 PM Author
    I had a great meeting with the client and they have agreed to focus on the end customer niche to drive their strategy. I used parts of each of your comments to drive them to accept that the end customer is their "indirect" but important customer.

    It first warmed them up to accept that the distributor and reseller is their customer but not their only customer by JBTron, then showed them the benefits mentioned by D4 and finally used Wade's comments on push/pull methodology.

    Thanks,

    Kelly Stark
  • Posted by wnelson on 11/4/2008 at 9:14 PM Member
    Good work, Kelly! Way to go! Also, thanks for letting us know the result and how you used the different perspectives.

    Wayde
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