1. Value through the channel mfr whlslr rtlr custmr

2. Channels Management -- Why Have Them? Lower Costs Added value to buyers Customer expectations

3. Channels can create efficiency V1 V2 V3 V4 C1 C2 C3 C4 C1 C2 C3 C4 V1 V2 V3 V4 RS Direct: V x C transactions Via Reseller: V + C transactions

4. Channels Create Value e.g. by Selecting products; providing assortment Providing appropriate quantities (“breaking bulk”) Providing services Providing availability (carry inventory) Providing access (location)

5. Channel Management Choose Channels that –Reach customers –Provide required value –Have OK power position Choose partners that are managed well Support Channels

6. Channel Support Help them provide value Provide desired incentives Provide expected allowances Use expected relationship practices Negotiate with their interests in mind Build relationship, but keep in perspective

7. Manage the Relationship Written contracts so they know what to expect, both positive and negative Communicate intentions; follow through on promises Keep perspective: temporary, limited partnerships; not life-long marriages Communicate extensively

8. Types of technology channels Direct sales OEM VARs Systems integrators Distributors Retailers

9. Other channels Selling partners –ISVs –Partners –Others? Web / Internet

10. Questions What’s different about high tech channels? How do you evolve channels through TALC? Distribution pricing?

11. What’s happening with the Web? B2B electronic channels -- why? Types: vertical portals, horizontal portals, barter, auction, Customer Relationship Management