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You sell a product through a geographical network of dealers who sell to end-users in their areas.
Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials. You sell a product to a company who bundles it with services or other products and resells it. A VAR may work with an end-user to determine the right products and configurations, and then implement a system that includes your product. If users need personalized service, you can utilize a local dealer network or reseller program to provide that service. If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or distributor that can offer your product on their own sites. You can build your own specialized sales team to prospect and close deals directly with customers. Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market.
You’ve used one or more distribution channels to grow your revenue and market share more quickly than you would have otherwise. If you reach your end-user through wholesalers, VARs or other channel partners, you’ve created many successful marketing programs to drive revenue through your channel and you’re committed to their success.
You may not have as many channel partners as you’d like, but your current system is working moderately well. You devote resources to the program, but you wonder whether you’d be better off building an alternative distribution method — one that could help you grow more aggressively than you are growing now.

You probably aren’t hitting your revenue goals because your distribution strategy is in trouble. With your current system, you may not be effectively reaching your end-users; your prospects probably aren’t getting the information and service they need to buy your product.
Create a free account in our marketing planning and management web app for step-by-step guidance. If your end-users need a great deal of information and service, your company can deliver it directly through a sales force.
If you need complete control over your product’s delivery and service, adding a channel probably isn’t right for you. If you want to grow beyond the direct model, look for companies that have relationships with your end-users.
If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Service your channel partners as you’d service your best customers and work with them to drive revenue. The Marketing MO planning app is your behind-the-scenes Chief Marketing Officer, a comprehensive resource that will improve your overall business, whether it’s a consulting practice, start up, or mid-size company. For this leading pharma company, we defined the optimal distribution strategy for a new, targeted oral oncology product.
Learn how to set up, manage and improve your distribution channels with this detailed how-to guidance in the Marketing MO planning and management app.
Learn how to set up, manage and improve your distribution channels with this detailed how-to guide from the experts at Marketing MO.

Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns.
If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers – and they are, since they’re buying your product and reselling it. It’s especially important to think about distribution when you’re going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business. If consultants, wholesalers or retailers already reach your customer base, they’re natural partners.
Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than from another, your partners will rightfully have concerns. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners. When your channel is up and running, you can start launching marketing campaigns to channel partners and end-users.
When tackling any new marketing task, have confidence that we have your back – with the structure and detail you need to get things done right. Understand their needs and deliver strong marketing programs; you’ll maximize everyone’s revenue in the process.
Pricing conflict is common, and it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible.

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