Channel Value Proposition

Posted in Marketing and Strategy Terms, Total Reads: 1001

Definition: Channel Value Proposition

Channel Value Proposition is a strategy that demonstrates to partners of a particular channel the reasons and benefits to partner with you over your competitors.

Channel partners add value by having skills and capabilities that are complementary to manufacturer. They have relationship with customers, they have capabilities in handling and installation of products, they have distribution and warehousing infrastructure in place etc. A manufacturer must therefore not only have a good end user value proposition but also a good channel partner value proposition.

Channel partners are external contractual organization that management operates to achieve its distribution objectives. So if the management does not have a good value proposition, they will not remain partners for long.

Some common value proposition that management can offer is – training, quality support, preventing channel conflict, reduced costs, better returns, growth, marketing support, involving partners in decisions of new product launch or new IT support system introduction which will add value to both, getting involved with only one exclusive partner for better loyalty and collaboration etc



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