ITC Channel Partners - A Reluctance to Engage

What is the biggest challenge facing channelVendors need to offer a range of campaigns to
marketing Director's today? Anecdotal feedbackpartners, with the minimum investment closer to
from many indicates that it is the reluctance of€2,000. This means that multiple marketing
channel partners to engage in co-marketingtactics must be on offer, to scale with the
campaigns with them, despite substantial MDFinvestment available.
funds being on offer.Objection 4: "We don't get enough support from
This article examines some of the key reasonsthe Vendor"
why partners are reluctant to engage inPart of this can be explained by the fact that
co-marketing campaigns, and what the technologymany of the Vendor's channel management
vendors can do to reduce these obstacles.teams are currently over stretched. During the
Objection 1: "We have already committed ourdownturn caused by the credit crises, channel
marketing budget for the quarter or year".marketing teams have been decimated at many
This comes down to a lack of planning on theof the large technology Vendors.
part of the Vendor's channel team. MostMany of the Vendors are now turning to
company's financial year is calendar, so everyspecialise third party channel marketing agencies
October and November the Vendor's channelto provide either strategic or ad-hoc support to
team should be working with key partners ontheir channel teams, and also directly to partners.
their joint marketing calendar, including budgets,Support ranges from marketing workshops with
for the following year.partners, aimed at making the most of
Events and campaigns should be mapped out,co-marketing campaigns, to administrative
using the Vendors marketing calendar as thesupport, demand generation and lead
basis. Good overlap opportunities for co-marketingmanagement.
events and campaigns should be identified, andObjection 5: "The amount of co-funding is too
nailed down. The entire year's co-marketing planssmall / other Vendors co-marketing offers are
will therefore be mapped out before the yearbetter, or better funded."
gets underway.There is a wide divergence in both the quality of
Channel marketing teams should remember thatco-marketing campaigns and level of market
they are competing with other Vendor's for theirdevelopment funds available from the different
partners time, resources and budget. The partnerVendors. Some vendors offer 75% funding on
only has so many resources to share betweenco-marketing campaigns, while others offer zero.
IBM, HP and Oracle for example, and the earlyPolicy is policy, and there is not much channel
bird will catch the most worms.marketing managers and directors can do about
Objection 2: "We just don't have the time andfunding levels if the company policy is limited or
resources".no co-funding. However, they can increase the
Many Vendors don't understand how muchquality and support of campaigns. Free marketing
pressure the smaller partners in particular areworkshops, free lead management, free
under. They have to make a profit every quarter,drip-marketing and higher quality leads can all be
and have a very limited marketing team, if any.provided by specialist third party agencies, and all
They need to focus on making sales - now.improve the quality of experience and ROI for
Marketing campaigns need to be simple tothe partner.
prepare, launch and manage.Objection 6: "The Vendors drive peak-and-trough
"Campaigns in a Box" are a great way to getmarketing."
partners marketing joint solutions professionallyIn the ITC sectors, many solutions have a six to
and efficiently. However, this is only part of theeighteen month sales cycle (at least). Partners can
solution. The Vendor has to make it easy for thebecome overwhelmed with the volume of leads
partner to customise, launch, report and claimfrom once-off campaigns that quickly generate
back funds on the campaign. Often, the solution islots of leads, and then no leads at all until next
to bring in a third party agency that can hand-holdyear. Partners simply do not have the resources
the partner through all of this, and take overto handle the peak, and do not have professional
much of the administration.lead management and "drip-marketing" systems
Objection 3: "The minimum project size is tooto nurture longer term opportunities over time.
large."Vendors need to take a longer-term view on
Some smaller partners find it difficult to even getco-marketing campaigns. The objective should be
on the ladder with co-marketing campaigns. Whileto provide partners with a steady stream of
the Vendor may think that a €10,000qualified opportunities, with quantities matched to
investment is nothing, the partner has to considerpartner resources. The Vendor, either directly or
that they need four campaigns a year with eachusing a third party agency, should also provide
of their three strategic vendors. At €10,000 perlead management and nurturing support so that
campaign, this is a €120,000 investment.return-on-investment is maximised through closed
Depending on the margins, expected sales, andsales from both near-term and long-term sales
size of company, this simply may not be feasible.opportunities.