what is channel strategy

What is Channel Strategy?

When developing your channel strategy, it’s important to understand how each component fits together. We’ll go over how communication skills are key, and how to select the right partner. We’ll also discuss why dual distribution might be a good idea for some companies. If you have two different brands, or you sell to different types of consumers, dual distribution can make sense for both strategic and legal reasons. But before you can start implementing this strategy, you must know exactly what you’re selling and how consumers interact with it.

Developing a channel strategy

The first step to developing a channel strategy is to map your overall goal to a component. Some of these components are obvious, while others may not. Channel strategies are designed to optimize efficiency and reduce costs. You’ll likely have several options to choose from and make a final decision only after you have completed the rest of the steps. For example, you may decide to map the ‘as-is’ channel plan to the goals of your other brands.

The next step in developing a channel strategy is to understand your target audience. If you’re a new brand, a channel strategy that focuses on brand awareness may be beneficial. Conversely, a well-established brand may look to expand its reach into new markets. Whatever the case, channel strategies can be customized according to the company’s products and services, target audience, and more. For example, a product aimed at older consumers might be better suited for catalogue and email marketing.

For specialty medicines, you’ll want to develop a channel strategy that focuses on key centres. In a rare disease, for example, you may have several hundred patients in each major European market. This means you must be very careful to collect accurate patient numbers to make sure you get paid. The supply of rare-disease medicines may be limited, and patient persistence may be a major factor. In addition, there may be a significant price difference across Europe, which could cause product diversion and shortages.

Your objectives will determine the channel strategy you need to use. Do you want to sell more products or services, gain more life-long customers, or increase your profit margin? Or do you want to create brand awareness, increase customer loyalty, or create a wider audience? Your goals will determine which channel strategy is best for your business. There are several types of distribution channels to choose from, and you should choose the one that best suits your business and your goals.

You must remember that the channel ecosystem is competitive and that the other companies are also vying for the attention of MSPs and VARs. This is why it is imperative to develop a channel strategy that is based on a strategic roadmap. You need to identify what channels your target and which partner requirements are. Then, plan how your sales team will implement the channel strategy. If your sales force does not have enough expertise, outsourcing the work to an expert will be invaluable.


Defining and managing channel conflicts are critical components of a successful channel strategy. Conflict is often caused by internal factions that complain about a lack of manufacturer commitment or competition. Emotions may cause a channel to shift away from the brand, which can cause a negative impact on sales. Often, channels will de-emphasize the brand if they feel a lack of commitment from the manufacturer.

When two or more competing channels compete for the same sale, channel conflict will likely occur. It may be the direct sales force versus an independent distributor, or two different types of channels. Regardless of how the conflict is managed, effective manufacturers must consider all of the elements of their channel strategy and evaluate their pricing, end-user segmentation, and channel support programs. In addition, companies must review their company policies to ensure that they are promoting and supporting their sales channels in a way that benefits their overall business.

The decision to choose a channel strategy involves assessing the profitability of various marketing channels. Today’s manufacturers use a variety of marketing channels, from high-end to low-end resellers, to their own web sites. While many companies only utilize one channel, most manufacturers have several channels. A limited level of channel conflict indicates adequate market coverage, but destructive channel conflict can be damaging to a channel strategy, product profitability, and market position.

Communication skills

Effective communication requires skillful encoding of messages for the intended audience and channel. This skill requires a keen understanding of how people interpret and decode messages. In addition to understanding the intended audience’s needs and expectations, effective communicators anticipate potential misunderstandings and avoid them. Successful decoding is an essential part of channel strategy. People interpret messages differently, so it’s vital to know how to adjust your words accordingly.

Moreover, your tone and articulation must be clear and understandable. You should speak clearly, and avoid small talk. Small talk elicits little attention and only serves to open the door to further communication. It’s not enough to simply talk about what you’re interested in, or how much trouble you’re having with a project. Instead, communicate with your audience and gain their trust. As a result, you’ll be able to connect with them.

An effective marketing strategy requires a strong written communications skill. Effective marketers know how to convey product benefits, respond to customer objections, and persuade prospects to take the next step. Effective marketing can increase sales and profitability. In addition to being effective in writing, the marketing department needs to tailor its messages to the audience they’re trying to reach. Using an email campaign for one audience won’t work the same way over the phone.

Strategic communication requires advanced communication skills to ensure success. Effective communication professionals have excellent writing, research, and interpersonal skills. They are also highly capable of working in a team. The salary for PR professionals varies by location and educational background. The role of a strategic communicator is similar to that of a marketer in a large company. However, the difference between the two is that the latter is focused on positioning a company for growth.

Partner selection

A core component of channel strategy is the selection and qualification of channel partners. In the current world of digital business, a typical channel partner may carry products from its competitors. While it’s unlikely that one vendor will be able to disrupt another, a good partner can increase a company’s chances of success. Partner selection involves careful consideration of various factors, including partner coverage and compatibility, as well as partner training and qualification.

Strategic partner selection includes determining the products and services to offer through the channel. Partners can be crucial in making this decision, as they may have product expertise that extends well beyond the company’s own. They can also give feedback on what should be offered. It’s important to involve partners in the decision-making process, as decisions made for one partner may affect others. For example, some companies require channel partners to complete partner certification. Partner certifications are important when moving up the partnership hierarchy.


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