Efficiently Move Your Products with Channel Marketing

Channel marketing may might be your solution to efficiently move our product or moreover acquire people to use your product. Channel marketing is when associations work together to get their services and even products out to the end users. Many companies that make products and furthermore have servers do not work directly with the final user. They build channel marketing; the most convinent forms of channel marketing will move services from the manufacturer to the consumer. For channel marketing to be efficient it must include one or even more marketing line which will render a variety of functions. Each and every partner is going to execute a function, provide value, and even expect a financial gain. This will require certain channel management. Also, on a smaller scale partner management and partner training.
Channel marketing is mainly utilized in the sale of products. Although, it can be used to distribute products as well. Companies that offer a service can also see the benefits of channel marketing. An example would be how credit unions and moreover banks count on a series of ATMS to give their services to their consumers. Medical and health organizations have a large scale network of service providers. Insurance companies as well as financial management firms spread information to their partner management. In these examples channel marketing gave these very different sorts of businesses to provide improved service and lesser cost rather than they could without the other channel members.
A company can show its distinctions through the distribution of channels. This is because each channel might be able to give a particular coverage, execution, experience, or even product. There is a huge deal of cost effective gain that can be made with channel marketing. The decisions you create about your channel marketing might be some of the most significant which you have. Each and Every partners will affect each others choices. The pricing one organization can offer will be dependent on the manufacturers prices. Among the advertising and sales force a firm puts forth might be dependent on how must partner training as well as how well motivated the dealers are.
Channel marketing brokers are in existence because they render the assistance of obtaining goods and service more accessible and avilaible to the markets you wants to get in to. These channel marketing brokers can give you experience, contacts, and specialization. They have work with immense companies and moreover smaller business which simply cannot get these kinds of connections on their own. Channel marketing gives producers a chance to fully understand the benefits that usually only larger companies get to have. Each channel partner brings their own value. They will give their partners data that can be collected and made use for marketing to acquire more clients. They can help promote your business with a shared as well as developed scheme of marketing communication that has been made to attract new customers. Even you can even gain access to funding and finance alternatives to purchase inventory. Channel marketing partners will likewise grow your payment option by rendering your clients more options.

eCommerce and Multi-Channel Marketing

As eCommerce purchasing trends have matured over the last four years, it has become abundantly clear that consumers leverage multiple channels when making a purchase decision. To meet continuously rising consumer expectations, retailers of all shapes and sizes need to understand and embrace the power of delivering a consistent and integrated multi-channel experience. Any retailer that utilizes more than one channel to sell merchandise - be it a catalog, brick and mortar store, or eCommerce store, can gain tremendous business benefits by effectively executing multi-channel initiatives.

In a nutshell, the term "multi-channel" is primarily used within two concepts in retail:

o Multi-Channel Marketing

o Multi-Channel Integration

This article is meant to be an introduction to the overall topic, with a focus this month on multi-channel marketing. Next month, I will follow with content related to multi-channel integration and how it can also be leveraged.

Multi-Channel Marketing

Multi-channel marketing is the tactic of reinforcing your brand messaging by utilizing multiple sales channels to communicate with customers. It's been proven in numerous studies that when retailers facilitate the behavior of consumers to shop via multiple channels, they become more valuable from the standpoint of lifetime value. Look what JC Penney discovered when they starting testing and measuring multi-channel behavior a few years back.

o The company found that internet only shoppers spent $121 per year, retail only spent $194 per year, catalog only spent $242 per year, and a customer who shopped all three spent over $1000 per year (source: ebusinessiq.com)

o "We want to go out and aggressively introduce J.C. Penney.com to our catalog and retail customers and get them to shop online because we know it is going to increase their purchases across all channels" (JC Penney eCommerce Executive)

Why do these incremental gains happen? It's not always an easy question to answer, but in my opinion, it is primarily because the consumer now has the capability to purchase in the channel which best suits their needs (ie. most convenient), while still receiving messaging from the other complimentary channels. A real life look makes it more simplistic.

Let's take for example that you are a high-end electronics retailer. You operate 12 physical stores, send out a catalog four times a year, and operate an eCommerce store. The key to multi-channel success is to leverage the strengths of each sales channel by coordinating messages and driving customers to all three sales outlets. Each of the channels is different - and your multi-channel strategy should capitalize on the strengths of each channel to best represent your brand.

The catalog serves as a great tool for browsing but is not the most effective when it comes to comparing products. Its tangible nature makes it readily available for shopping (judged by the number of catalogs my wife has on our dining room table), but its space constraints within the pages make it limited from a product information standpoint.

Retailers should leverage the catalog to create initial interest, but encourage shoppers to go to the web to learn more and ultimately purchase. One standard tactic to achieve this is by heavily promoting the URL within every page and by providing unique "catalog quick shop" numbers for each product. A retailer can also message the customer about "web only" specials, or closeout products that are not available in the catalog, but are only available from the website.

When a consumer then comes to the website and types the provided product number in the "catalog quick search" box, a retailer then has the option to either send the visitor directly to the product page, or send directly to the shopping cart with the product pre-populated in the cart. Both options have their pros and cons - with the latter option being a more direct and aggressive approach to convert a visitor by reducing the number of clicks to purchase.

The potential negative consequence about sending traffic directly to the shopping cart from the catalog quick search is that consumers may still be in "shopping" mode and may be turned off to such a direct approach of merchandising. Monitor your analytics to see which path is more effective from a conversion perspective.

A plethora of other tactics can be leveraged by retail businesses in an effort to promote cross channel purchasing behavior. Retailers can have catalog sign up forms within their online store to allow site visitors to receive their catalog via standard mail. Email marketing campaigns can message in-store promotions that are in the vicinity of the user's physical address and include coupons or discounts that can be printed and brought to the store for redemption. In-store associates that utilize a web-based POS should ask each and every person who purchases for their email address so that they can receive "member benefits" sent via email. Online versions of the catalogs and circulars should be live on the eCommerce store and can be tailored to a visitor location. All of these tactics increase the level of customer interaction with the brand and are extremely valuable in driving repeat purchase behavior.

Five Minutes to Understand Marketing With the Sender-Message-Channel-Receiver Communications Model

A hitchhiker makes a sign to passing cars. He doesn't stand in a park, or stick his thumb out in a mall. His message is aimed directly at his target audience: the people in cars traveling down the highway in the direction he wants to go. Your messages must be clearly directed to audiences with the greatest potential for positive response.

The Sender-Message-Channel-Receiver Communications model can help you visualize the process of communications. A model is a representation, not reality. Communications doesn't work exactly like this, but it does give us a way to talk about the different steps of the communications process, and a way to explore how to direct our messages in the most effective ways.

Briefly, the Sender is the person creating a message. The Message are his ideas, the words he says (or writes, or draws). The Channel is the means of communication -- the telephone, sign, or website. The Receiver is the person who gets the message -- the listener or the reader.

In telephone terms, the Sender initiates a call. He speaks his Message. The telephone is the Channel (including the phones at both ends, and the wires and the switching stations between them). The Receiver is the person who picks up the phone and listens.

This model was developed to analyze problems with telephone communications. Researchers wanted to pinpoint sources of Channel Noise (like static) in order to reduce or eliminate it. We can use these concepts to keep our messages on track.

This model works great for telephony, but it misses some important aspects of communications. For instance, what the Sender says and what the Receiver thinks the Sender means may be two different things. Messages aren't communicated exactly: they depend on the shared knowledge of the two communicators; a shared vocabulary, experience, and world view.

Then there's the problem of Channel Noise. The phone may have static, or the listener could have the television on. The print job on the advertisement could be so bad it can't be read, or the website features small grey lettering on a black background.

Another problem with this model is it leaves out Feedback. When we talk with people in person, they constantly reassure us of their attention and understanding, by nodding their heads, making encouraging sounds, or even asking questions.

In our mediated communications we can look for feedback in other ways. For example, feedback can take the form of orders. We can test a message by changing it in a small way, then noting a change in the response.

We can test every part of the communications process by measuring changes in response. For example, by sending the same message to two different audiences and comparing the responses, we'll know it's the target audience that makes the difference, all other things being equal. Or we can test the Message - say, with a sales offer, or a different headline - and see if orders go up.

Getting Started with SMCR

So how to get started crafting a successful marketing campaign? Getting back to the hitch-hiker analogy, as marketers we want to send our messages to those with the most likelihood of responding. We choose our Receivers. As potential customers, we'll call these Receivers our Target Audiences.

The Target Audience is composed of the type (or types) of people we think are most likely to respond. Cooks read Cookbooks, so if we're selling cookbooks we look for Cooks. What do they want? These are the Benefits we feature, the problems the product solves. Where do we find them? What Channels reach them? Cooking magazines, bulletin boards in supermarkets, mailing lists of people who have bought fancy saucepans. We may have more then one channel for each potential audience.

What will convince each audience to respond the way you want, with an order? You'll send them different information; you'll also try to psych out the particular need your product will satisfy, and create a message that appeals to this need.

We do this in various ways. One method of crafting Messages is to think in terms of Persuasive Appeals. Ask yourself why one type of person would want your product. You're focusing on different Receivers or Target Audiences. Who are they? What need will you satisfy? What starts as one Audience can become several. A single woman may want to create a romantic meal; a mom wants a nutritious one; a working mom a quick one; a football fan wants to give a party and not be in the kitchen. So you use different Channels to reach each one.

Obviously, the appeal will be different in each. You'll present a solution to each problem, satisfy their need to impress, to nurture, to sell. So the Message may be different for each Audience, too.

Marketing Channel Support Must Remain Flexible

Competitive companies can no longer afford to let marketing channels become stagnant over the lifetime of their product. Just as it is important to revisit and reinvent sales and marketing strategies in general over time, channel marketing support structures and services must be rebuilt to accommodate changing conditions. For example, if a company's product line is maturing and few new products are being introduced, or if margins are not optimal, manufacturers with higher-margin requirement models will need to make fundamental changes in order to remain competitive. These may include restructuring distributor channels, revamping reseller channels, or finding new, higher-margin products to sell.

One type of business that may not be flexible enough with channel support is the wholesaler group. These businesses typically stay in the middle between OEMs and their channel and other partners, neglecting reinvention of strategies and keeping outdated structures around too long. Successful wholesalers realize that reorganization to shed costs is necessary, and actively offer more services to downstream channel partners and increase demand creation for manufacturers. But this strategic process is also taking place in the computer industry, health care, the life sciences, and food industries.

In addition, while the current economy is characterized by threats and disconnects in the business world, staying on top by maintaining flexibility is paramount. Mergers and acquisitions have forced altering expenditures and focus across channels, and new requirements and life-cycle stages call for new marketing infrastructures. Also, conversion from fixed to variable costs and the creation of flexible organizational designs characterize those businesses able to roll with the economic punches.

But successful businesses also know that a flexible approach to channeling requires its own management process. Channel strategy changes affect the entire organization in various ways. Especially in the high-tech marketplace, volatility and global scope make efficiency hard to achieve-but efficiency in channels is just as important as effectiveness in reaching target customers. Large, globally-scoped companies must conquer the following challenges:

Localize strategies
Create and mobilize cross-functional teams
Generate accurate sales forecasts
Roll up results on a regional and global scope using common processes and nomenclatures
Achieve innovation on tighter budgets by utilizing customer input for product development
Deliver greater results with each new marketing campaign
Determine how to merge channels with an acquired company
Effectively expand sales across international borders
Launch an original or first product
Manage multiple channels to dominate a new market

Cross Channel Marketing For the Retailer With the iPad

Cross Channel Marketing is a critical factor to a strong and successful marketing campaign. Not to be confused with multi channel marketing, BusinessDictionary.com defines Cross Channel marketing as the "use of one marketing channel (such as direct mail or internet) to support or promote another channel (such as retailing)." This will help coordinate your marketing goals to the consumers and will ensure the strengthening of your companies brand awareness. This continuous coordinated message directly targeting specific demographics, in a specific location, who speak a specific language will reduce costs and improve overall effectiveness of targeting the right consumer at the right time. Now there is a new vehicle that can bring Cross Channel marketing to new level: the iPAD.

The introduction of the iPAD is so exciting because it opens the door for a new channel that did not truly exist before. This is a media rich mobile device that lets users combine videos, news magazines and publishing all into one device. Digital magazines and digital newspapers will soon become a standard medium over the next few years. A recent article from RetailSystemResearch.com states "One of the fundamental changes going on in mobile computing & communications is the migration from living in a 'two mobile device environment' with most people having a notebook (information creation & personal library) and a cell phone (calls & messaging) to a 'three mobile device environment' with most people having a notebook to create and manage content, a tablet for eBook reading and rich media playing (videos, TV, movies), and a cell phone for calling and messaging. The iPAD represents the beginning of the convergence of these channels and we should expect retailers and other organizations to begin working on integrating information for the converged three mobile device environment.

Retailers interested in engaging in Cross Channel marketing promotions should consider the iPAD as a new channel. The iPAD is an important development because it allows retailers to create ads that are interactive, user friendly and offer multimedia content. As an example, consider an automotive advertisement, where consumers can view a 3D display of a car, change the color and then send it off to friends and family as they commute to work on the train. iPADs can also be outfitted with location technology. This gives retailers the ability to deliver ads based on the consumer's proximity to a store or outlet. This is an incredible opportunity to deliver 'call to action' advertisements to mobile users.

While some retailers support Cross Channel promotions, many do not have systems in place to automate the promotions process. In order to design an effective promotion that integrates the iPAD, retailers need to ensure that their promotions systems can support this new channel. Those retailers that tend to rely on manual processes will fall further behind their competitors as new devices, such as the iPAD, reach consumers hands.

While it is still early to determine how the iPAD will change the promotions landscape, we expect retailers will require changes to their planning and promotions workflow and therefore to the systems that support their promotions process. With this new opportunity, retailers will have access to just-in-time promotional vehicles. Therefore, retailers should think about how long it takes for them to create an ad campaign. Now is the time for taking action to shorten the ad production cycle with new and improved systems that automates as much of their process as possible.

Multi-Channel Marketing - Network Marketing with a Twist

Studies have shown that customers who buy from two channels (vs. just one) are between 20 and 60% more valuable, while triple-channel buyers are 60-125% more valuable! Plus, multichannel shoppers have a lower attrition rate and buy a wider range of products. - Direct Marketing Association, 2008

The Body Shop, world renowned purveyor of toiletries and cosmetics, is making a splash in the Direct Selling arena with it's party plan sales channel, The Body Shop at Home. In addition to stores in shopping malls and their online e-tailing site, The Body Shop has fully embraced the concept of Multi-Channel Marketing. Other direct sales companies have followed suit, as there are now Avon stores popping up in shopping centers across the United States, and many direct selling companies now have consultant websites.

But what is this multi-channel marketing all about?

Simply put, multi-channel marketing is the concept of offering your product to the customer when they want, in the way they want. Some people prefer face-to-face sales, some prefer traditional mail order catalogs, while others prefer online shopping. Most customers, however, participate in a combination of those methods, and multi-channel marketing aims to meet the customer where they are to serve them better.

At Rich Schefren's StrategicProfits Live event, MaryEllen Tribby, publisher of Early to Rise e-zine said that "multi-channel marketing is good for the customer and it's good for your business!" In fact, Tribby identifies two problems that are solved by taking a multi-channel approach:

"As a marketer, you reach your customer in the way he/she wants to be reached. Plus, you are... converting this person to a paying customer."

How do you translate this into your direct sales/network marketing business? How do you capitalize on multi-channel selling?

First, take full advantage of your company's selling options. Catalogs, consultant websites, brochures, and any other sales tools that your company provides are tested, trusted materials to help move you through the sales process. But don't stop there.

Second, establish your own personal website that promotes you as an expert in your field. I write about this so often, but it bears repeating: YOU are your company's best product, and you can't find it in any catalog! Create an online presence for yourself.

Third, develop a newsletter and maintain a mailing list, be it electronic or "snail mail", that you contact on at least a monthly basis. Create and establish customer loyalty through physical as well as electronic methods.

Fourth, use the phone constructively - customer follow up calls are NOT cold calling, and should be done on a regular basis. Sometimes a client has a question or concern and doesn't connect with you because they are busy. You need to be in contact - before your competition is.

Ultimately, network marketing is about connecting with people. The best way to connect is, as Viktor Frankl wrote, to meet them where they are. Whether by mail, phone, web, in store, or in person, it is clear that the multi-channel marketer is poised to become even more successful and valuable to their clientele as the years tick on.

How to Handle the Distribution Channel Section of Your Marketing Plan

If you are planning to recover a distressed business, you need to develop a Turnaround Plan. This plan will contain a Marketing Plan that should be a standalone component and distinct from the overall Turnaround Plan. A critical component of the Marketing Plan is the Distribution Channel section.

The Distribution Channel section of the Marketing Plan should describe the methods used to distribute products and services in the current company and what, if any, changes will occur in this channel after the business turnaround occurs. It should emphasize any key aspects of the new distribution channel that will improve the chances for success of the overall Turnaround Plan.

To illustrate what to included in the Distribution Channel section of the Marketing Plan, we will use a fictitious company called XYZ Company. XYZ Company sells high-end medical lasers used in surgery.

[Beginning of excerpt from Marketing Plan]

Distribution Channel
In the current company, all educational materials are delivered via printed books and physical classes at our onsite educational facility.

In the transformed company, all educational products and services will be delivered over the Internet or at the customer location. We will provide service and support coverage remotely with a 24-hour support line. Overnight Federal Express will handle any required equipment repairs or exchanges.

The inventory will consist of online products stored in files and backed up in database repositories online. The Internet service provider will maintain these databases. Therefore there will be no physical inventory. This will result in a significant reduction in facility costs.

All products will be distributed using online methods. A typical transaction for an educational product will take place as follows:

Customer arrives at the XYZ Company website and clicks on Products. From the product menu, customer selects XYZ2590 Expert Training module, Online live session.

If the Customer has an account with XYZ Company, then they go into the Order Entry system; if they do not have an account, they are sent to the New Account menu, their email address is added to the main Customer List in the XYZ Company database, and the customer is sent to the Order Entry system.

- Customer specifies the dates for the online class
- Other add-on products are offered.
- Customer is moved to the checkout screen.
- Customer enters payment information.
- Payment information is verified and a confirmation message is displayed.
- Customer receives a printable receipt and class information in their email box.

If the order included any downloadable products, the links for these products are sent to the customer email box.

[End of excerpt from Marketing Plan]

YouTube Marketing - 3 Best Benefits of Using YouTube to Market Your Business

YouTube has gone popular overnight. Once the favorite haunt of amateur home video makers - it is now the breeding ground for marketing strategies. And why not? Why, even e-celebrities (or those who became virtual world celebs after putting their videos on YouTube) have launched their careers on YouTube. So, why not use it as your very own marketing tool?

Here are some reasons why you should think about exploring the possibilities of YouTube marketing:

1. Rising through the ranks.

PageRank. Now that Google owns the rights for YouTube, it follows that YouTube will be given a priority in Google's PageRanking. People using Google search engine will probably see YouTube catapult ahead of the line, which is a great way to maximize your site's visibility in the virtual world.

2. Spare your corporate site the bandwidth drain that comes with streaming video.

For companies, generating exposure or new business via YouTube may be low in priority. However, some business are finding it as a great place to keep and park video clips using bandwidth of YouTube with just a simple link from their corporate site.

3. Create your own customer and channel base.

Every time you post a video in your account, YouTube creates a profile channel. Avid viewers can be part of that channel and subscribe to it. Businesses can then send newsletters via e-mails to those subscribers.

Embrace technology and let it help you with your business. It has work for a lot of people, so, you may as well jump in the bandwagon and use YouTube marketing. And if it doesn't work - no worries, it's free.