Tuesday, October 14, 2003
TACTIC: Positioning versus Branding
Posted from London
I recently listened to a common type of miscommunication between channel partners and a vendor about branding. The partners told their vendors that they wanted branding. The vendor obliged by creating a marcom campaign that none of the partners use. Since both wanted the same thing, how come the results were so poor?
The problem is that although they use the same words, vendors and partners mean different things when they talk about business development. Often when channel providers say ‘Branding’ they mean ‘Marketing.’ When they say ‘Demand Creation’ they mean ‘Joint Sales.’ When they say ‘Promotion’ they mean ‘Leads.’
Channel companies, by definition, are much more tactical in their view of marketing activities. Few have large budgets for esoteric image branding. Even if they budget a high level of funding for marketing, e.g. 5%, the average $1M partner would have only $50K to spend annually on marketing (excluding vendor co-op.) Every penny spent on marketing must bring in measurable results.
Most partners are looking for three things out of their vendor when it comes to marketing: legitimacy, professionalism and market demand. If they are not using your campaigns, your marketing is not delivering on these needs.
Scott@ChannelVentures.com
Posted from London
I recently listened to a common type of miscommunication between channel partners and a vendor about branding. The partners told their vendors that they wanted branding. The vendor obliged by creating a marcom campaign that none of the partners use. Since both wanted the same thing, how come the results were so poor?
The problem is that although they use the same words, vendors and partners mean different things when they talk about business development. Often when channel providers say ‘Branding’ they mean ‘Marketing.’ When they say ‘Demand Creation’ they mean ‘Joint Sales.’ When they say ‘Promotion’ they mean ‘Leads.’
Channel companies, by definition, are much more tactical in their view of marketing activities. Few have large budgets for esoteric image branding. Even if they budget a high level of funding for marketing, e.g. 5%, the average $1M partner would have only $50K to spend annually on marketing (excluding vendor co-op.) Every penny spent on marketing must bring in measurable results.
Most partners are looking for three things out of their vendor when it comes to marketing: legitimacy, professionalism and market demand. If they are not using your campaigns, your marketing is not delivering on these needs.
Scott@ChannelVentures.com
