Targeting Sales Channels

Targeting the proper indirect sales channels can be the most important decision that you can make. There are several factors that need to be taken into consideration:

Who are the products’ target customers and who do they buy them from? Consumers usually buy from retail outlets. Small and Medium Businesses (SMBs) usually buy from a variety of sources (web, small dealers, value added resellers (VARs), etc.). Enterprises and large business usually buy from large distributors and dealers.

What size business are you? Normally equipment providers and distribution channels have a tendency to “peer”. That means larger product providers tend to work with larger dealers and distributors, and smaller product providers work with smaller dealers and VARs.

What is the status and age of the product market? If it is a mature market that is being addressed it will mean competing against existing products for mind share and shelf space with entrenched channels. There will be barriers and expenses associated with displacing the existing product suppliers from the channels. If it is a new or developing market there should be no entrenched products or channels and lower expenses and barriers to channel acquisition.

These are just a few of the topics to consider when looking a selecting specific paths and channels to market. There are obviously many more. What it does point out is that there are relationships between the product and the market that are not related to its technology that will have an effect on its success.

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