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October 24, 2006

Enemy At The Gates

In the Septermber/October 2006 issue of Office Dealer, a publication dedicated to sales in the office products industry, there is an article titled "Permission Marketing." (Unfortunately, it was not available at the time this posting was written...) In the article, the author profiles some dealers who rant and rave about manufacturers executing "permission marketing programs" (read...e-mail marketing).

It is a sad article, for two reasons.

One, it shows that even the biggest of the big (in this case HP) can strugggle executing direct marketing programs that don't alienate their independent distribution partners. In the case of e-mail, where exotic merge technologies make it straightforward to create programs that can drive the HP brand while still providing support for the channel, this really doesn't need to happen. But, there is a blend of hubris and business necessity at work. You cannot blame manufacturers who try to enhance brand loyalty at the expense of channel building. Thus, the hubris of simply ignoring the channel. The business necessity? That comes from the need to keep growing the company at all costs. Of course, therein lies the conundrum — how can you ask for channel loyalty while simultaneously undermining the channel's apparent value. Channel distrust remains a major hurdle in many industries.

At the same time, it is sad to see any dealer publically railing on this topic. Dealers need to spend less energy complaining about direct communications touches and more time figuring our how to build their value proposition or enhance their own communications programs. Getting e-mails delivered and read is increasingly complex. As a result, the organizations closest to the customer (those with facetime to back up their electronic touches) remain in the best position to be successful. Mr. Dealer, your customer intimacy is the key to defending your turf. Don't wait for HP or anyone else to erode your value...build it up so that HP's e-mails become irrelevant. I know that is easier said than done, but to be blunt --- there is no alternative.

Posted by jcioban at October 24, 2006 12:22 PM

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