Existing distribution channels are breaking because the rate of change around these channels; the people, the technology, and the products are changing more rapidly than these complex organizational infrastructures can adopt.
For you to meet your three and five year business objectives, your distribution channels must be able to do their part of the job.
Like so many things in life, you can only control what you do, not what others do. As a marketer, you can control channel selection, channel program development and the implementation of your channel programs.
Customers learn more about how to buy, use and support products as markets evolve, causing the channel’s role to change. The figure above illustrates the evolution from high valueadded, high gross margins to low value-added, low gross margins.
Many industrial marketers are trying to make the transition from selling products to providing customers total solutions. As many have found out, this is a daunting task.
To develop insight about your channel strategy, you must understand the market and your organization. Understanding the market will enable you to direct your channel strategy.