Manufacturers have searched for the best way to market and sell their products for many years. Some elected to sell their products directly to customers. This required a significant investment in a sales and marketing department. The salespeople were located across large geographic areas. This marketing strategy required high sales margins that could cover the expense of local salespeople. This strategy is still used in major capital equipment products such as airplanes, large manufacturing machines, and other high-priced products and systems. Different marketing channels were required to sell lower-cost technical products successfully.
This article describes how Channel Partner Marketing Increases Sales.
In the 1960s, manufacturers started using a channel marketing strategy. Channel partner marketing is a strategy where a company collaborates with third-party partners (such as resellers, distributors, or system integrators) to market, sell, and promote its products or services. Instead of selling directly to customers, the company leverages these partners to expand its reach, increase sales, and enhance customer support.
Manufacturers try to maximize this sales channel to improve their sales.
A manufacturer (the vendor) provides products, services, or software. The manufacturer selects partners (resellers) to promote and sell products to the end user. The company supports partners with training, marketing materials, co-branding opportunities, and incentives to drive sales.
There is a continuing challenge in maximizing the performance and effectiveness of their dealer channel.
The transition to channel marketing allowed manufacturers to expand market reach and leverage partners’ existing customer base. Utilizing a channel rather than the manufacturer’s sales force lowered the Sales Costs and reduced the need for a large direct sales team.
Finding resellers who are currently selling similar products results in Faster Market Penetration. Local Partners help scale growth in new regions or industries. This channel marketing approach results in stronger brand trust—customers trust local partners or resellers they already work with.
Increased Revenue Streams – More distribution channels mean more potential sales.
Identifying the Right Partners is sometimes challenging. Some dealers may be familiar with their selling market but clueless about the new products they are asked to sell. It is essential to learn as much as possible about the expertise of the potential reseller.
Create a Partner Program with incentives and clear engagement guidelines. Incentives should be based on a reseller’s sales volume.
Offer Training and certification to ensure partners understand your product and can sell it effectively.
Provide Co-Marketing Support – Supply marketing materials, campaigns, and promotion funding.
Maximizing channel sales requires a strategic approach to partner relationships, training, marketing, and incentives. Equipping your channel partners with the right tools and support can boost their performance and drive revenue growth.
Training can help, but it doesn’t always work if the reseller lacks the appropriate background (education).
Dealers require help increasing their marketing efforts.They have minimum time and resources to provide their own marketing, but manufacturers can help by providing a regular content marketing program that enhances dealer sales.
If your business wants to scale quickly, reach new markets, and leverage third-party expertise, channel partner marketing can be a powerful growth strategy. It works exceptionally well in the technology, software, and hardware industries but can be adapted for many business types.
If you need more information about Content Marketing to improve channel success, please call 914-944-3425, email [email protected], or use our contact form.