I spoke about the importance of creating positive marketing messages in a prior post about engagement marketing but it bears repeating.  At our core we are social creatures and we are attracted to people, events, products, services, and brands that help us to have fun. The reason that social media is such a huge hit is because it helps us to connect with others so we can share fun.  It’s so simple, yet so profound.  This simple truth creates infinite possibilities to increase your marketing ROI.

First of all, what is “fun?”  Fun isn’t just fun, it’s hope.  Fun can be found in magnifying the things you love in what you do everyday.  It can transform the annoyances you face into positive challenges to help others.  It is fun to see the results of your hard work in your personal growth and in your career.  It is fun to use your success to turn around and help someone else get further in their life.  It is fun to work in a team to pull together to see something accomplished.

Think for a minute about the products or services that you or your company are promoting.  Some of us may be lucky enough to work for a company whose mission is to help people have fun, such as film, gaming or social media.  Others of us have to search a bit harder to determine the fun that we provide to other people.  However, if you take the time to do this exercise it can transform the way you market yourself and your company’s products and services.

I offer, as example, my own situation to explain my thinking. What I promote to the business world is custom market research services on behalf of C.A. Walker Research Solutions.  On face value it doesn’t seem like I’m selling anything particularly fun, but to me it is great fun!

First of all, I find it fun to build relationships either online or in-person and to discover people’s current business objectives.  I am a natural problem-solver.  I enjoy delving into different business worlds to understand perspectives and pain points, so I can determine precisely how we may contribute to others’ success by applying custom research, thus creating more fun in their life.  It’s also fun to think through with people if there is anything we can do together to offer markets a service that is stronger than either of us could separately.

I find it fun to analyze potential markets and figure out fresh ways to make relevant the various types of research that we’ve been doing for more than 30 years.  It is fun to then use that information to prepare marketing messages that appeal to people’s sense of fun; at least to be interesting!  It’s fun to post applicable articles to my LinkedIn groups, which I also may use to explain some of what we do, and to meet new people who seek me out because they appreciate what I’ve shared.

On a personal level, it’s fun to me to represent a company that I firmly believe in.  I’ve worked in a variety of companies over the years, but never before have I worked with such a terrific group of people.  It’s a joy to me to get up each day and go to work to spread the tale of C.A. Walker.  We are in a “sweet spot” in this rough economy as far as our size (25 people), the value that we offer, and our consistent focus on client service.  And to add to my point about the importance of having fun, I work with a bunch of comedians.  We’re all the time joking and kidding with one another, while always making sure all is well with our projects.  I love it!

It’s fun to study what marketing ROI means and how businesses are working to apply it.  It’s fun to build my personal brand, Marketing ROI or DIE!  It’s especially fun to read when people respond to my posts that it’s helped them in some way. It’s fun to use Twitter (@MktgROIorDIE) to spread what I’m learning and to make new connections, such as when I attended the Licensing Expo in Vegas recently.  I met some really great people through the use of the #licexpo hash tag who I look forward to working with!

So whatever it is you do, rediscover your sense of fun in it.  Think through how you are helping others have fun in their lives, and utilize that in your marketing to increase your ROI.  Most importantly, laugh daily and find people to laugh with you.  It’s hard to laugh alone!

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So what is channel development?  Channel development is about creating partnerships upline and downline that bring greater influence, strength and sales to those participating.  Channel marketing is creating propositions to potential partners, marketing to them, and then motivating/incentivizing them.  Channel Marketing Partners are typically vendors, manufacturers, distributors, resellers and retailers, working in cooperation.  They start with a deep understanding of their specific target market. They identify the customer’s business issues and develop an approach to addressing those issues, cooperatively building programs from the ground up. They then assemble the necessary pieces and package them into a solution. The goal is to get customers to buy into the total vision of the Channel Partners.

Designing a system that can manage the complex relationships in channels is no small feat.   In 2004,  CRM Today said that most PRM (partner relationship management) tools out there were like “putting wings on a bus.”  They tried to re-purpose the CRM and it simply did not work.   They share why:

“CRM is fundamentally designed to manage direct sales engagements between a sales representative and a buyer. This mode revolves around collecting and sharing data throughout the customer lifecycle.  PRM, on the other hand, is designed to manage a complex ecosystem comprising legally independent partner organizations. This one-to-many model revolves around aligning business processes across the entire value chain, from vendor, to partner, to customer.”

Today, there are a number of PRM options that are much more sophisticated and designed from the ground up to work for channel managers.  And somewhere along the way, PRM became TPM (trade promotion management) and the term “trade funds” became used for co-op marketing.

A 2008 study by the Consumer Goods Technology group finds that “While only 52 percent of companies in 2008 evaluated trade spending, more and more companies are attempting to implement trade promotion management (TPM) applications to improve TPM analysis in 2009.”  The reason that more companies haven’t taken on a TPM application is due to their complexity and cost.

Oh, and did I mention cost?  NewsFactor suggests that “Because trade promotion spending can reach 20% or more of sales, a very minimal percentage of improvement [from a TPM] can justify an entire project without reaching too far.”

They then go on to detail ways to lower the cost:  Roll it out slowly and to those who can benefit most, first. Get sales buy-in and usage early in the process. Use an SaaS.  Build real metrics. Eliminate your desire to build unique processes into the system.  Talk with other companies (i.e. software vendor user groups and references) who have implemented a TPM and learn from them. Don’t wait until it’s too late and you make mistakes.

“Many growing CP manufacturers can quickly get inundated with unexpected deductions or make poor decisions about promotions due to a lack of centralized visibility. Many growing manufacturers start facing challenges associated with managing trade promotions when they reach a dozen or more SKUs, or when they start negotiating with their first national retailer, or when they surpass the $10M mark in sales.”

Here are several offerings by TPM vendors to get you started:

• Purplewire’s ChannelSUITE
• Adesso Solutions’  TradeAdvantage™
  
• The Synetics Group’s TPM
• The MEI TPM
• The SAP TPM
  

The Channel Champion recently attended a TPMA conference (trade promotion marketing association) and found that the key metrics to evaluating channel effectiveness are:

• Budget to spend
• Net incremental sales
• ROI – consumption or shipment based
• ROI – variable and fixed margin
• Incremental spend

Add to that list those NewsFactor recommended:

• Promotion effectiveness
• Lift improvements
• Reductions in stock-outs.

As an aside, the company that I work with, C.A. Walker, can support marketing’s efforts in channel development in the following ways:

• Profile partners to identify new contract opportunities
• Measure partner “brand fit,” awareness, satisfaction, usage
• Test partner communications, incentives and promotions

I look forward to learning more about channel marketing developments and sharing them with you here.

trade promotion management (TPM)

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