1 Motivating New Channel Members Motivational Concepts and Processes

2 Push Strategies Pull Strategies Sales and Product (Value Offer) Training Here are a few ways to give your new relationship a positive foundation. Guidelines for Great Channel Partnerships

3 Here are a few ways to give your new relationship a positive foundation. Introduce the new distributor to your customers. Use press releases and other publicity vehicles to let the world know that your value offers can now be purchased from this source. Help the distributor take over existing accounts. Go along on sales calls to your biggest end user accounts to help establish the new distributor as the new sources for your value offer or service. Turn over any contracts or leads from the previous distributor to the new one. Build confidence with easy assignments. Let new distributors start by selling value offers that are easy to sell and accounts that are easy to close. As they succeed, add in more complex value offers and accounts. Provide enough product samples, literature, price sheets, and other collateral material for all of the distributor's sales personnel.. Schedule factory visits and joint sales calls to build enthusiasm among the ranks. Conduct as much intensive, on-site and customer-call product training as the distributor allows. Give plenty of positive feedback on their work.

4 Push Strategies A push strategy is any marketing activity that entices your COD to sell your value offers rather than those of other manufacturers the channel represents. In other words, these types of promotions push your value offer through the channel. Push strategy examples are: Travel incentive programs that award an all-expense-paid trip to a domestic or foreign destination for meeting a quota during a specified period of time. Merchandise programs that reward salespeople for performance with items such as televisions, sporting goods, clothing and gourmet foods. Training programs that increase the distributor salespeople's comfort level with your value offers, thereby making it easy to sell the value offers to their customers and reap compensation (commission, bonus) accordingly.

5 Push Strategies Monetary SPIFFS (special promotional incentive factory funds) that draw specific attention to certain models or groups of units in your value offer line. For instance, for the next thirty days, you will pay $30 per unit SPIFF bonus for each particular model a distributor salesperson sells. Two tremendous advantages of this type of program are that it can be launched with very little administrative work and can be communicated quickly to your channel. Special discounts or allowances that draw special attention to your value offer line through a limited-time offer. For example a manufacturer might announce that, for the next sixty days, its channel will receive an additional 10 percent discount off the best published price on any order. Local COOP advertising efforts (direct mail, exhibitions, space advertising) that produce local market quality sales leads that materialize into real purchases.

6 Pull Strategies A pull strategy motivates the end user to approach your channel of distribution and "call out" for your value offer... Pull strategy examples are: Space advertising in leading publications that generates qualified customer inquiries that produce actual purchases of your value offers. Media releases announcing new value offers or features, which cause potential end users to request further information or a demonstration from your distributor. Rebate programs offering a limited-time, factory-issued cash rebate to end users that purchase your value offer form your channel of distribution. Exhibitions where end users spend time in your exhibit booth expressing an interest in your displayed value offer line. Direct mail campaigns targeted at qualified individuals who request further contact.

7 Pull Strategies End user seminars conducted by your staff and attended by individuals who have, by their presence and time commitment, expressed a sincere interest in your organisation's value offers and as a result of the seminar proceed to your channel to acquire your value offer. Telemarketing efforts that can supply your distributor with telephone qualified sales leads that will culminate in actual purchases. Internet exposure via a Web page illustrating the features and benefits of your value offer line and that directs visitors to local distributors for further information. Radio and television advertising that promotes your value offer to potential end users that then contact your COD for additional details and sales information.

8 Sales and Product (Value Offer) Training Sales and product training programs can be tremendous motivational vehicles, especially when combined with other push strategies. They instil your distributor salespeople with confidence, thereby making your value offers easier and more comfortable for them to sell. What Are the Training Program Objectives? Initial distributor start up value offer and sales indoctrination. Ongoing value offer and sales training programs. New value offer launches. New market penetration. Overall positioning of your organisation and value offer line/mix. Competitive analysis. Sales skills training. Business management skills training

9 Guidelines for Great Channel Partnerships Rule 1: Be Honest and Accurate— Even if It's Painful Being completely honest with distributors is one of the most important ingredients in building a lasting trusting COD partnership. Tell the truth consistently, and your distributors will begin to respect and trust you. When you have bad news, make sure your channel hears it directly from you, not from a competitor or other third party. Share news—good or bad—promptly. Rule 2: Communicate With Every Level of Personnel to Ensure the Most Complete and Accurate Transmission of Your Channel Information Flow Everyone employed by your distributor, from the CEO to the salesperson in the field, is selling for you. All of them are your customers. Communicate with everyone, and you create strong backers who will enthusiastically support your value offer marketing efforts within the distributor's organization.

10 Guidelines for Great Channel Partnerships Rule 3: Consider the Needs of Your Channel Before You Implement New Policies Whether you're forecasting next year's sales or contemplating a price increase or a new value offer, check with your channel first. By all means avoid the "ivory tower" attitude that factory/manufacturer knows best. Listen to and consider your distributor’s opinions 4: Use the Channel Telegraph Judiciously The infamous channel telegraph does exist. Distributors, especially eagles, are in constant contact with each other... Think through any policy or procedure before it is implemented. Act incorrectly, and everyone soon knows.

11 Guidelines for Great Channel Partnerships 5: Communicate With Other Friendly Channel Marketing Managers in Your Industry or Marketplace This golden rule governs your relationship with your peers. Don't seal yourself off from other channel managers... Sharing your insights lets you glean customer and marketplace trend data that can help you compile accurate sales forecasts, take advantage of market opportunities, guard against glitches, keep up on news of distributors, and gather news of direct competitors.