The changing technologies in channel management have not changed the groundwork in establishing channel designs. It still includes the fundamental steps like mapping out target market, proposing an equivalent value to goods, and identifying the process of delivery and sales. On the other hand, what PRM systems change are the options that companies have in communicating and distributing leads to their partners.
Because of the recession, most companies are adamant against moving into the unknown and particularly, new avenues available through the help of new technologies and program for fear of having conflicts within those in pipeline. The sales and profit of their companies mostly come through their pipelines so this conflict avoidance can be considered natural. On the other hand, choosing to go with the changes can also bring significant amount of growth to any company if done right.
Going with the Flow
The Internet age has changed the way vendors sell and distribute their products. The worldwide web is a huge marketplace that can exponentially expand a company?s geographical reach. Some suppliers are even on an all-out strategy to tap on the Internet and using a PRM system presents a convenient way for both business owner and indirect retailers to lay down goals and process. This tool helps vendors analyze the impact of their efforts on revenues and sales. It is also the best instrument to look into the cause of channel conflicts and devise methods on how to solve them without jeopardizing the interest and goal of all parties involved.
One strategy beneficial to joint business ventures is to incorporate a partner portal system to tapping lower pipelines targeting specific customer segments. Business owners could assign a specific retail price to segments but assign them to different customer segments to avoid conflict. Another strategy is to assign a new product line to each segments to avoid market dominance of the few that would eventually lead to unhealthy market competition. In a nutshell, it is of prime importance to understand the dynamics of partners and customer segments in order to maximize the skills and resources of everyone involved in the joint venture. Channel mapping could really help vendors segment their indirect sales pipelines and seek more avenues to create a well of resources.
Ways to Create the Map
There are two ways to map out channel relationships. One is to look at diagram existing relationships among segments and participants. In this way, business owners can see the status quo and use the information gathered to devise methods and strategies to fuel the partnership?s goal. This strategy can also help in identifying root cause of existing conflicts and conflicts that may arise. The second strategy is to look into the future by trying to anticipate changing of roles and responsibilities of each cloud. In this manner, the company could position itself properly to avoid serious ramifications of possible conflicts.
A PRM system assists companies identify and anticipate conflicts that can affect the whole partnership if not confronted right away. It provides an avenue for them to communicate with pipelines to establish collaborative schemes to give equal economic opportunities to all entities involved in the joint business venture.