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Business Market Management 3 rd  edition Sustaining Reseller Partnerships Chapter 9
Section IV:  Delivering Value Business Market Management,  3 rd  edition Chapter 9-
Chapter 9:  Sustaining Reseller  Partnerships ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Overview ,[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Business Market Management,  3 rd  edition Chapter 9- Delivering Superior Value to Targeted Market Segments   and Customer   Firms Sustaining Reseller Partnerships Strengthening Partnerships in Stable Marketplaces Ensuring   that Value   i s Delivered Enhancing Interfirm Coordination Fulfilling Supplier Commitments Fulfilling   Reseller   Commitments Responding Adaptively to Incremental Changes Creating   Adaptive Channels Adjusting Commitments Transforming Channels in the Face of Disruptive Forces Establishing   Integrated   Multi-Channels Skillfully   Handling   Relationship   Transfers Terminating   Existing   Partnerships
I. Aligning Mutual  Self-Interests and Complementary Resources Business Market Management,  3 rd  edition Chapter 9-
Mutual Self-Interests and Complementary Resources ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Mutual Self-Interests and Complementary Resources ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Alignment Difficulties ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Threat of Opportunism ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Ensuring Alignment ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Causes of Channel Conflict ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9- Conflict often masks misalignment and the  tendency of both supplier and reseller to avoid or  “ gloss over” conflicts.  However, addressing disputes early and decisively is in the best interests of both parties.
Ensuring Alignment  ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
II. Strengthening Partnerships in a Stable Marketplace Business Market Management,  3 rd  edition Chapter 9-
Strengthening Partnerships  in a Stable Marketplace ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Fulfilling Supplier Commitments to Deliver Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Fulfilling Supplier Commitments to Deliver Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Provide Responsive Sales and Marketing Programs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Back Up Resellers with  Pricing Support ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Furnish Operational and  Technical Support ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Fulfilling Reseller Commitments to Deliver Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Strengthening Interfirm Coordination ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Participate in Periodic Joint  Annual Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Written Agreements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Improve Communications  Through Bridging ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Synchronize Efforts with a Partner Relationship Management System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management, 3 rd  edition Chapter 9-
Ensuring that Value is Delivered ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Market Research ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Equitable Return on Delivered Value ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Diagnostic Measure and Profitability Analyses ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9- Note:  Suppliers and reseller rely on  different sets of performance ratios
Diagnostic Measures Business Market Management,  3 rd  edition Chapter 9- Annual  Inventory Turnover X Average Gross   Margin Average Gross   Margin ÷ Average Inventory Average Gross   Margin ÷ Average Accounts   Receivables PARs Performance Activity Reports.  Trade associations and consulting firms commonly compile and publish industry averages.  If firm’s ratio is close to the industry average, then it is doing acceptably well on that dimension. E/R Ratios Expense-to-Revenue Ratios . Suppliers evaluate:  1) customer communication, 2)  paperwork flows, 3) physical distribution, and 4)  financial risk assumptions Turns X earns GMROI GMROR
Strategic Cost Management (SCM):  4-Step Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Profitable Analyses Business Market Management,  3 rd  edition Chapter 9- Contribution Margin _ Controllable Marketing  Fixed Costs SCM Strategic Cost Management:  Recasts the direct costing income statement around distribution-related activities Contribution Margin ,[object Object],Net Marketing  Contribution
III. Responding Adaptively to Incremental Marketplace Changes Business Market Management,  3 rd  edition Chapter 9-
Adjusting Commitments ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Reseller Advisory Council ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Gives & Gets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9- Disconnects between partner firms can occur here; what one channel member thinks it is  giving  can be significantly different from what the other partner perceives it is  getting .
Traditional Reseller Discounts and Allowances Business Market Management,  3 rd  edition Chapter 9- Trade or Functional Discount ,[object Object],[object Object],[object Object],[object Object],Quantity   or   Volume   Discount ,[object Object],Payment   Discount ,[object Object],[object Object],Allowance ,[object Object]
Eliminating Inequities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Responsive Adjustment to Joint Annual Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Seek Influence Among Channel Partner Firms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Seek Influence among Channels Partner Firms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Creating Adaptive Channels ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Adaptive Channel Initiatives ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Provide Support in Extraordinary Situations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Resolving Reseller-Supplier Conflict Business Market Management,  3 rd  edition Chapter 9- Boundary-Spanning Personnel Individuals who are in contact with the partner firm regularly; sensitive to inherent trouble spots Employee Exchange Program Firms assign personnel for periods time to channel partner operations Trade Association Membership Both the supplier firm and channel partners can learn how the other operates and what problems they must routinely address Ombudsman Typically a retired reseller manager or principal employed by the supplier who has credibility with both parties Mediation A third party is brought in to help resolve a dispute by either refocusing discussion on key issues or suggesting viable solutions Arbitration Firms legally agree to have a third party settle the disagreement.  Decision is final and binding.
Responsively Broaden the  Market Offering ,[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Share Capabilities with Other Channel Members ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
IV. Transforming Channels in the Face of Disruptive Forces Business Market Management,  3 rd  edition Chapter 9-
Transforming Channels in the  Face of Disruptive Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Creating Integrated Multi-Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Integrated Multi-Channels ,[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Handling Relationship Transfers ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Terminating Partnerships ,[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
V. Summary Business Market Management,  3 rd  edition Chapter 9-
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Business Market Management,  3 rd  edition Chapter 9-
Business Market Management,  3 rd  edition Chapter 9- All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall

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Chapter09

  • 1. Business Market Management 3 rd edition Sustaining Reseller Partnerships Chapter 9
  • 2. Section IV: Delivering Value Business Market Management, 3 rd edition Chapter 9-
  • 3.
  • 4.
  • 5. Business Market Management, 3 rd edition Chapter 9- Delivering Superior Value to Targeted Market Segments and Customer Firms Sustaining Reseller Partnerships Strengthening Partnerships in Stable Marketplaces Ensuring that Value i s Delivered Enhancing Interfirm Coordination Fulfilling Supplier Commitments Fulfilling Reseller Commitments Responding Adaptively to Incremental Changes Creating Adaptive Channels Adjusting Commitments Transforming Channels in the Face of Disruptive Forces Establishing Integrated Multi-Channels Skillfully Handling Relationship Transfers Terminating Existing Partnerships
  • 6. I. Aligning Mutual Self-Interests and Complementary Resources Business Market Management, 3 rd edition Chapter 9-
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. II. Strengthening Partnerships in a Stable Marketplace Business Market Management, 3 rd edition Chapter 9-
  • 15.
  • 16.
  • 17.
  • 18.
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  • 22.
  • 23.
  • 24.
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  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31. Diagnostic Measures Business Market Management, 3 rd edition Chapter 9- Annual Inventory Turnover X Average Gross Margin Average Gross Margin ÷ Average Inventory Average Gross Margin ÷ Average Accounts Receivables PARs Performance Activity Reports. Trade associations and consulting firms commonly compile and publish industry averages. If firm’s ratio is close to the industry average, then it is doing acceptably well on that dimension. E/R Ratios Expense-to-Revenue Ratios . Suppliers evaluate: 1) customer communication, 2) paperwork flows, 3) physical distribution, and 4) financial risk assumptions Turns X earns GMROI GMROR
  • 32.
  • 33.
  • 34. III. Responding Adaptively to Incremental Marketplace Changes Business Market Management, 3 rd edition Chapter 9-
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  • 36.
  • 37.
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  • 39.
  • 40.
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46. Resolving Reseller-Supplier Conflict Business Market Management, 3 rd edition Chapter 9- Boundary-Spanning Personnel Individuals who are in contact with the partner firm regularly; sensitive to inherent trouble spots Employee Exchange Program Firms assign personnel for periods time to channel partner operations Trade Association Membership Both the supplier firm and channel partners can learn how the other operates and what problems they must routinely address Ombudsman Typically a retired reseller manager or principal employed by the supplier who has credibility with both parties Mediation A third party is brought in to help resolve a dispute by either refocusing discussion on key issues or suggesting viable solutions Arbitration Firms legally agree to have a third party settle the disagreement. Decision is final and binding.
  • 47.
  • 48.
  • 49. IV. Transforming Channels in the Face of Disruptive Forces Business Market Management, 3 rd edition Chapter 9-
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55. V. Summary Business Market Management, 3 rd edition Chapter 9-
  • 56.
  • 57. Business Market Management, 3 rd edition Chapter 9- All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc.   Publishing as Prentice Hall