Social Media 101: Understanding Social Media Channels, Demographics, and Usage
Understanding Channels - a presentation
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Transcript of Understanding Channels - a presentation
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8/13/2019 Understanding Channels - a presentation
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Understanding Our Partners
A presentation on working with partners and Blue Coat
S. P. Dhar
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Objectives
Understand:
The dif ferent ty pes o f resel lers
Why there are different resellers
What are the mos t common/succ essfu l resel lers for
Blue Coat Systems and wh y
How resel lers dif ferent iate themselves
How resel lers are struc tured
What motivates resellers
Which resel lers to use when
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Getting the most out of our partners
TakingActions
Agreeing onPlan
Products /services
to sellGettingResults
Formal &
Informal
Blue CoatSystems
&
Partner
Blue Coat Systems
&
Partner
SettingGoals
Blue CoatSystems
&
Partner
Channel Strategy
Comprehensiveunderstanding ofyour partners
Impacts on al l aspects
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The 4CsNeed to address to ensure partners succeed
CoverageFocus on the right:
CustomersIndustriesSolutionsRun-rate vs projectbusinessValue proposition/differentiation in those
segments
CapabilitiesThe right skills, attitudes, and
knowledge in:sales, marketing, technical,finance, operations, andmanagementhow they relate to theirtargeted customers
Capacity
Sufficient amount of resources:especially financeSalesMarketingand technical
CommitmentAllocate resourcesMotivate resourcesManage resources
CapabilitiesCapacityCommitment
Coverage
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The 4CsWhat the resellers need to provide
CustomerBase
Sales
Infrastructure
Valueproposition
Differentiation/Strategic Control
Products
ServicesEnd users
Capability
Right skills,knowledge, tools,
resources
Capacity
Enough skills,knowledge, tools,
resources
CoverageRight customers and value proposition
CommitmentAllocation,
motivation, andmanagement
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Types of resellers
Value add resellers
Network ing resellers
Systems integrators
Secur i ty VARs
Telcos/service providers
Global Systems Integrators
Product resellers
Retailers
ISVs (independent software vendors)
Outsourcing
Influencers
Consul tants
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Why are there so many different types?
Different Products and services Customers
Infrastructures
Differentiation Business models
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Different product and services
Different combinations of products and services require different types of
resellers
Legacyintegration
BusinessApplicationConsulting
ProjectManagement
Price
Availability
Simple
installat ion
Installation
Ease ofordering
Maintenancecontract
One stop shop
TrainingStaging
Complex Transactional
Large
installat ion
UniqueHomogeneous
Upgrade/refresh
PriceAvailability
Device
Ease ofordering
One stop shop
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TechEnthusiasts
SkepticsConservativesPragmatistsVisionaries
System IntegratorsValue Added
ResellersMulti
ChannelsLow costchannels
Product life cycles and types of buyers
Over the life of a technology, the types of buyers change
So do the resellers who will be successful
Revenues
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Partner business model
We need to understand the basic business model of our
partners
Customer
Base
Sales
Infrastructuresells, delivers, supports, collects, administers
Value
propositionDifferentiation/
Strategic Control
Financial Model
Blue Coat Systems
Product
SALES
CLOSE thesalesMANAGE the
customers
MARKETING
GENERATE theleadsand
competitivepositioning
TECHNICAL
IMPLEMENTandSUPPORT the
sales
FINANCE
FINANCEthesales
MANAGEMENT
MANAGETheorganization
OPERATIONS
DELIVER/SUPPLYProducts
SALES
CLOSE thesalesMANAGE the
customers
MARKETING
GENERATE theleadsand
competitivepositioning
TECHNICAL
IMPLEMENTandSUPPORT the
sales
FINANCE
FINANCEthesales
MANAGEMENT
MANAGETheorganization
OPERATIONS
DELIVER/SUPPLYProducts
Low
High
Price
Performance
High
Low
16.74%11.47%
2 0 04 2 0 03
1 5 .1 9 1 4 .5 9
2 0 0 4 2 0 0 3
2 4 .0 2 2 5 .0 2
2 0 0 4 2 0 0 3
5 .5 1% 5 .4 1% 4 .4 0% 4 .6 2% 3 1. 18 3 0. 92 4 3. 54 3 9. 64 5 0. 70 4 5. 54
2004 2003 2004 2003 2004 2003 + 2 0 0 4 2 0 0 3 - 2 0 0 4 2 0 0 3
DSOInventory Days
Returnon
WorkingCapital
DPO
Working
CapitalTurn
Working
CapitalDays
Gross Margin
OperatingMarginX
1.10%
2004
0.79%
2003
-
CostStructure
Small and Medium
Companies
SMB(
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DifferentiationPrice vs. performance
Differentiation ultimately drives a partners infrastructure
and their requirements from Blue Coat Systems
Low
High
Relat ive to com pet i t ion
Price
Performance
High
Low
Value Partners
Very strong
technical services
Customer intimacy
Walmart/CDW
Strong transactionalskills
Generally in commodityproducts only
Or in cross-subsidized
Traders
Very price pointedAppeals to limited marketif alternatives exist
Monopolists
Usually occurs only if
there is some type ofmonopoly (e.g. 1 partner ina territory)
Generally to be avoided
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Infrastructure
It sells, deliver, supports, collects, and administers
All of these processes are key, but Sales and Marketing are the most important
Key is to understand capability, capacity, and commitment
SALES
CLOSE the sales
MANAGE the
customers
MARKETING
GENERATE the
leads and
competitive
positioningTECHNICAL
IMPLEMENT and
SUPPORT the
sales
FINANCE
FINANCE
the sales
MANAGEMENT
MANAGE
The organization
OPERATIONS
DELIVER/SUPPLY
Products
SALES
CLOSE the sales
MANAGE the
customers
MARKETING
GENERATE the
leads and
competitive
positioningTECHNICAL
IMPLEMENT and
SUPPORT the
sales
FINANCE
FINANCE
the sales
MANAGEMENT
MANAGE
The organization
OPERATIONS
DELIVER/SUPPLY
Products
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How Resellers Sell
Inbound/outbound
salespersonWebsite
Inbound/outboundsalesperson
Inbound/outboundsalesperson
Technical person
Inbound/outboundsalesperson
Inbound/outboundsalesperson
Technical person
Operations
Vendor
Wholesaler
Prospecting
Call/contact Salesperson
Prospecting
Call/contact
Qualifying Outboundsalesperson
Qualifying
Outboundsalesperson
Technical personPre-sales designPre-sales design(generally little)
Proposing ProposingOutboundsalesperson
Close saleOutboundsalesperson
Close sale
Deliver
Operations
Vendor
Wholesaler
Deliver
Install Technical/vendor Install
Technical/vendor
Support TechnicalSupport
(not frequent)
Technical
VARs Product Resellers
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How Resellers are structured
Marketing manager Operations/technicalmanager
Purchasing manager (maynot exist)
Sales manager
Biz development/product manager
Sales specialists/sales engineer
Reseller sales rep Purchasing/buyer
Awareness campaigns
Visits
Call to action (l imited)
Visi ts w ith
salesperson
Secure best price
Organize shipping to
end user
Visits/calls
CEO
Customers
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The sales squareHow resellers make sales happen
Marketing
Technical
Sales
Purchasing /buyer
Provide techn ical
in fo
Assist in pre-
sales design
Provides street informat ion to product manager
Sales forecast
Product and p rogram awareness
product knowledge
Pric ing support
Order admin
Provides street
informat ion to product
manager
Sales forecast
Purchase
requirements
The linkage between the different parts of the organisation
are critical for success
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CAM reseller focus
Marketing managerOperations/technical
managerPurchasing manager (may not
exist)
Sales manager
Biz development/product manager
Sales specialists/sales engineer
Reseller sales rep Purchasing/buyer
Awareness campaigns
Visits
Call to action (l imited)
Visi ts with
salesperson
Secure b est pr ice
Organize shippin g to
end user
Visits/calls
CEO
Customers
CAM Focus
The people who make/
inf luencesales mos t
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The sales squareHow resellers make sales happen
Provide technical info
Ass ist in p re-sales
design
Marketing
Technical
Sales
Purchasing/ buyer
Provides street inform at ion to product m anager
Sales forecas t
Product and p rogram awareness
product knowledge
Product manager puts pressure on purchasing to
manage stock to m aximize fi l l rates
Pr ic ing s uppor t
Order admin
Provides s treetin format ion to product
manager
Sales forecast
Purchase
requirements
The linkage between the different parts of the organisation are
critical for success
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CAM distributor focus
Marketing manager Operations/technical manager Purchasing managerSales manager
Biz development/product manager
Sales specialists/sales engineer (VAD)
Distributor sales rep Purchasing/buyer
Awareness campaigns
Visits
Call to action (l imited)
Visi ts w ith
salesperson (VAD)Secure best price
Manages stoc k levelsVisits/calls
CEO
ChAM Focus
The people who make/
inf luence
sales mo st
Reseller
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What Motivates Partners?
Understanding what the channel needs
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What Motivates Partners
3 types of people need to be motivated all 3 need to be motivated & aligned to ensure sales
Blue Coat Systems Inc. PartnerSales Organisation
Sales RepSales
ManagerGeneralManager
So What
Try to understand what motivates each type of person in theorganization
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What motivates a general manager/company
Profit
-Gross profit-Expenses
Switching
costs- sunkinvestment
Indirectrevenue-traffic
generator-bundled with
otherproducts
Direct
Revenue$Growth
Risk
(trust/consistency)
Relationship
-Emotional-direction
Alignment of
futureobjectives
Ease of doing
business/selling
The value propositionthe reasons why Partners sell Blue Coat Systemsvaries
Partners often have numerous reasons Priorities vary by partner
Status/credibility
HighLow
Usual degree of importance
So What
Do not assume that each reseller is the same. Explore their
requirements
Most frequent
Veryimportant
when tryingto convert
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What motivates a sales manager and sales person
Compensation!
Commission is 25%-75% of total package Usually based on achievement of:
revenue or gross profit targets
sometimes gross margin $/INR
May have to meet targets by vendor but often canshift sales between vendors
Being easy to sell AND win is critical
So What
Try to find out how the sales manager and sales people view BlueCoat Systems contribution to his compensation
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Motivating others
Product/business manager Usually substantial commission/profit base
Similar to sales people
Technical people Like vendors that have interesting products
Prefer vendors that can offer good support resources
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Summary
Topic So What
The key drivers of partner successgoals,plans, actions, and resultsrequire thatChAMs engage with their partners in a waywhich is relevant to the partner
In order to engage with your partnereffectively and efficiently, you need tounderstand your partner.
Partners come in many different forms,
with great variety in the 5 elements of thebusiness model
Types
Products/services sold
Target customers
Business models
Differentiation
What motivates them
Use the business model to understand
the differences between your partners
Dont assume all
partners behave
the same