Digital
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online aDVertiSing
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PuBliCity
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SaleS management
telemarKeting
email marKeting
eVentS
Distribution, also known as placement, is one of the classic “4 Ps” of marketing (product, promotion, price, placement).
It’s a key element of your strategy—it helps you expand your reach to penetrate your market.
B2B and B2C companies can sell through a single channel or through multiple channels that may include:
› Direct/Internet: Selling through your own e-commerce website.
› Direct/Sales Team: One or more sales teams that you employ directly. You may use multiple teams that specialize
in different products or customer segments.
› Direct/Catalog: Selling through your own catalog.
› Retail: Retailers sell directly to end-users via a physical store, a website or a catalog.
› Wholesaler/Distributor: A company that buys products in bulk from many manufacturers and then resells smaller
volumes to resellers or retailers.
› Value-Added Reseller (VAR): A VAR works with end-users to provide custom solutions that may include multiple
products and services from different manufacturers.
› Consultant: A consultant develops relationships with companies and provides various types of services; they may
recommend a manufacturer’s product or simply purchase it to deliver a solution to their client.
› Dealer: A company or person who buys inventory from either a manufacturer or a distributor, then resells it to an
end-user.
› Sales Agent/Manufacturer’s Rep: You can outsource your sales function to a company that sells different manufacturers’ products to a group of similar customers in a specific territory.
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Here are three distribution examples:
Direct to End-Users
Sell Through a Dealer Network
Sell Through a VAR
(Value-Added Reseller)
You have a sales team that sells
You sell a product through a
You sell a product to a company
directly to Fortune 100 companies.
geographical network of dealers,
who bundles it with services or
who sell to end-users in their areas.
other products and resells it. That
You have a second product line for
The dealers may service the product
company is called a Value Added
small businesses. Instead of using
as well.
Reseller (VAR) because it adds
your sales team, you sell this line
value to your product.
directly to end-users through your
Your dealers are essentially your
website and marketing campaigns.
customers, and you have a strong
A VAR may work with an end-user
program to train and support them
to determine the right products and
You have two markets and two
with marketing campaigns and
configurations, and then implement
distribution channels.
materials.
a system that includes your product.
To create a good distribution program, focus on the needs of your end-users.
› 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. 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. Understand their needs and
deliver strong marketing programs; you’ll maximize everyone’s revenue in the process.
Best Case
Neutral Case
Worst Case
You’ve used one or more
You’re using one or more
You probably aren’t hitting your
distribution channels to grow
distribution channels with average
revenue goals because your
your revenue and market share
success. You may not have as many
distribution strategy is in trouble.
more quickly than you would have
channel partners as you’d like, but
otherwise.
your current system is working
With your current system, you may
moderately well.
not be effectively reaching your
Your end-users get the information
end-users; your prospects probably
and service they need before and
You devote resources to the
aren’t getting the information and
after the sale.
program, but you wonder whether
service they need to buy your
you’d be better off building an
product.
If you reach your end-user through
alternative distribution method—one
wholesalers, VARs or other channel
that could help you grow more
Your current system may also be
partners, you’ve created many
aggressively than you are growing
difficult to manage. For example,
successful marketing programs to
now.
channel members may not sell at
drive revenue through your channel
your suggested price; they don’t
and you’re committed to their
follow up on leads you deliver; they
success.
don’t service the product very well
and you’re taking calls from angry
customers.
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How Distribution Aligns with Strategy
Your distribution channels should support your positioning and brand strategy. These methods of reaching your market
should be natural ways to access your market segments, and support the experience that your brand delivers.
For example, if you’re selling a unique product that has little competition and is considered “high-end,” you don’t want to
be carried in Walmart, where the majority of shoppers are looking for low-priced products that they’re already familiar with.
Or, if you’re an enterprise software vendor, you should be working with professional services firms who have deep
experience with complex enterprise software deployments, and are a natural fit to engage with the types of companies
that you target.
You can evaluate a new distribution channel or improve your channel marketing / management at any time. 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.
Key Concepts & Steps
Evaluate how your end-users need to buy
Your distribution strategy should deliver the information and service your prospects need. For each customer segment,
consider:
› How and where they prefer to buy
› Whether they need personalized education and training
› Whether they need additional products or services to be used along with yours
› Whether your product needs to be customized or installed
› Whether your product needs to be serviced
Match end-user needs to a distribution strategy
› If your end-users need a great deal of information and service, your company can deliver it directly through a sales
force. You can also build a channel of qualified resellers or consultants. The size of the market and your price will
probably dictate which scenario is best.
› If the buying process is fairly straightforward, you can sell direct via a website/catalog or perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group or a field sales team.
› If you need complete control over your product’s delivery and service, adding a channel partner probably isn’t right
for you.
Identify natural partners
If you want to grow beyond the direct model, look for companies that have relationships with your end-users. If consultants, wholesalers or retailers already reach your customer base, they’re natural partners.
Build your channel
If you’re setting up a distribution channel with one or more partners, treat it as a sales process:
› Approach the potential channel partner and “sell” the value of the partnership.
› Establish goals, service requirements and reporting requirements.
› Deliver inventory (if necessary) and sales/support materials.
› Train the partner.
› Run promotions and programs to support the partner and help them increase sales.
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Minimize pricing conflicts
If you use multiple channels, careful y map out the price for each step in your channel, and include a fair profit for each
type of partner. 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. 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.
Drive revenue through the channel
Service your channel partners as you’d service your best customers and work with them to drive revenue. For example,
provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners.
Next Steps
If you’re creating a new channel, you’ll need a pricing strategy. You’ll also need to deliver sales tools and literature,
and a sales process.
When your channel is up and running, you can start launching marketing campaigns to channel partners and end-users,
and manage the campaigns and partners throughout the year.
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Naming
Strategy
ComPetitiVe PoSitioning
BranD Strategy
PriCing
DiStriBution CHannelS
toolS
NAMING
meSSaging
iDentity
WeBSiteS
literature
DeSign & CoPy
VenDorS
reCruiting
Crm
ClV
roi
CuStomer aCquiSition
Planning
SaleS ProCeSS
CamPaign Planning
marKeting Plan
traditional
Digital
management
traDitional meDia
Seo & Sem
CuStomer retention
DireCt mail
online aDVertiSing
BuSineSS DeVeloPment
PuBliCity
SoCial meDia
SaleS management
telemarKeting
email marKeting
eVentS
How important is the name of your product, service or company?
Your name is a critical extension of your brand, and it can reinforce the value you provide or distance you from it. When
you’re developing a name, you have a number of options:
› Use the founder or inventor’s name (Hewlett-Packard)
› Describe what you do (Southwest Airlines)
› Describe an experience or image (Sprint)
› Take a word out of context (Apple)
› Make up a word (Google)
It’s important to decide what your name should mean and represent. For example, if you’re running a company that
provides naming services, your name is a sample of your work—it should be great, right?
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Here are some companies that provide naming services:
Unique
Average
Forgettable
These companies appear to be
These companies all sound the
These naming agencies have
more creative and better at finding
same:
forgettable names:
a name that stands out from the
competition:
› The Naming Co.
› Werner & Stevens
› Brighter Naming
› Wollenski Associates
› A Hundred Monkeys
› Tradebrand
› Igor
› Catchword
(While they are hypothetical
› Namebase
examples, there are a lot of naming
› lasting Names
companies named after their
› Name One!
founders!)
All of these companies may provide great services, have many years of experience, and have terrific track records. If
you needed to select three companies to bid on your naming project, which companies would you contact? Are you
more likely to call a company with a unique name, an average name, or a forgettable name?
This example reinforces that you have one chance to make a first impression. Many of your potential customers might
know virtually nothing about your company, product or service, and a great name can make a positive impression and
open doors. A weak name can close them.
The name selection process is especially challenging because there are more than 26 million businesses in the United
States. U.S. trademark law protects business names, so when you find one you like, make sure you can use it. If you
infringe on a trademark, you could be forced to abandon your new name after investing a lot of time and money in it.
Also think about your internet marketing goals, since you may have to find a URL to match your name. There are almost
200 million domain names registered worldwide, and some experts believe that over 98% of words in the dictionary
are registered as domain names.
Don’t let these challenges stop you from finding the best name you can—there’s a lot at stake.
Best Case
Neutral Case
Worst Case
A great name can create buzz,
You look and sound like everybody
A poor name can neutralize or even
position you as a true leader and
else.
negate the work you do to build a
innovator, and reinforce your
position in the market.
positioning and brand in a word
You’ve missed an opportunity to
or two.
convey an important message, but
You may have trouble generating
at least you’re not hurting yourself.
interest in your company, product
That’s powerful. It can convey a
or service, forcing you to spend
culture, a position, and differentiate
more time and money educating the
the company from the rest of the
market about your value.
market.
A poor name can also limit your
opportunities if you expand into
other markets.
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How Naming Aligns with Strategy
Your company name is the anchor for your brand strategy—typically the first thing that the market sees and hears.
Your name, logo, packaging (colors, fonts, and design), location (if the market visits your store or offices), tagline or
slogan, and unique ownable specialty (your mindshare) all work in concert to create a perception.
When launching a new consumer product, seasoned marketers often create their positioning, brand, distribution and
pricing strategies before they select a product name, to ensure that all are aligned at launch. With tens of millions of
dollars at stake, it’s important to get it right the first time.
Most small-to-midsize companies select a name to open their business, then build their brand, distribution and pricing
over time. That’s fine, but it’s important to work to align them, to give you the best chance at delivering a repeatable
brand experience and owning a unique perception in the mind of the market.
Key Concepts & Steps
Do you need to hire a consultant or agency to help with your name?
With a good process and strategy, you can probably develop a good name on your own. However, you may not have
the resources or desire to handle the project internally. While it’s no guarantee that a firm or consultant will develop a
better name, they may do it more quickly and objectively.
There are a number of factors to consider, including:
› The stakes—if you’re investing a lot of money into launching a new product to a major market with established
competition, the stakes are high.
› Your confidence in your team’s creative firepower or objectivity.
› The amount of time and energy you have to devote to the project.
› Whether you can afford to bring in an outside resource.
Develop a strategy
› Determine what your name needs to accomplish.
› Decide how it will work with existing product or service names (if applicable).
› Determine what kind of name to develop—descriptive, invented, founder’s name, etc.
› Develop objective criteria to evaluate the names you generate.
Generate plenty of potential names
If you’re competing beyond your local area, you may find that many of your potential names (or URLs) are already
taken, so you’ll need to create a long list. Invite a variety of people to a brainstorming session. Plan it well and capture
every idea for further evaluation.
Evaluate the list against your criteria
Your goal is to objectively find the name that meets your criteria, so be careful about asking friends and family whether
they “like” a name. For example, a name that raises eyebrows may do so because it’s different—and it may be the
most memorable and powerful one in the bunch.
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Also test the name to make sure it:
› Sounds good over the phone
› Won’t be constantly mispronounced or misspelled, which defeats the purpose of a name
› Isn’t confusing
› Conveys what you need it to convey
› Has a URl that works with it
Protect your name
It’s important to protect your name to the appropriate degree. If you choose a name that infringes on another company’s trademark, you could receive a cease-and-desist letter and have to go to court and/or change your name after
months or even years of use.
By protecting your name, you also gain the ability to prevent future competitors from using it.
Next Steps
After you select a new name, you can create your logo and corporate identity, and then begin creating the messages
to use throughout your sales tools and literature, and your campaign creative.
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Messaging
Strategy
ComPetitiVe PoSitioning
BranD Strategy
PriCing
DiStriBution CHannelS
toolS
naming
MESSAG
A ING
iDentity
WeBSiteS
literature
DeSign & CoPy