Marketing is a necessary evil for any reseller that wants to grow. However, an effective marketing strategy must recognise exactly what the product or service is and who it should be directed towards, while taking care to measure the outcomes. With such a crowded market today, there is no use in just shouting your name from the rooftops.
Marketing is not always an easy exercise. On the one hand, it is Business 101 that you will make more money if more people know your name and what you do. The problem is how to find time to work on the business when you are flat out working in it.
In a survey this year of its resellers' marketing efforts, LAN Systems found that 47 percent either had inadequate marketing staff generally or only had people working on certain areas. And almost half (45 percent) of respondents said that they would like more help with their marketing.
Colin Williamson, with Sydney reseller Comaxes, says his company only recently brought on a full-time marketing person after realising that the function needed a lot more attention or else valuable opportunities would go begging. "Previously it [marketing] was seen as a part-time role," he says. "People with other responsibilities in the company were trying to juggle marketing activities with their full-time job."
Through its online subsidiary PHd Sites, Comaxes has its work cut out just ensuring that its marketing content and activities match those of its suppliers.
Aside from this, the company was also finding it difficult to keep track of the many vendor deals out in the market, not to mention the work involved with identifying and presenting proposals for market development funds. "It's now become more of a full-time role - it just loses focus if it's left up to someone with other responsibilities."
High costs of marketing
But while many IT resellers understand the importance of marketing to help grow their business, many simply do not or cannot afford to employ an in-house marketing specialist, says LAN Systems marketing manager Pat Russell.
"This could mean their marketing programs are run by other staff who may have fortes in other areas but may be lacking the appropriate skills for effective marketing."
Russell also warns of the dangers of preparing marketing material in-house on the cheap.
"I have seen some resellers' websites and brochures that have been poorly designed and have messages that are not clear to the potential customer.
"Simply having a professional web and print image which is consistent for all reseller communication will go along way to building credibility with their customers."
As well as looking good, the message must also be clear, especially when trying to sell technology. "I have also seen brochures and emails produced by resellers that focus on a product having the specifications X,Y,Z and features A,B,C et cetera, but do not make it clear to the end user what these benefits will mean to them," Russell says.
"Reducing some of the technical spiel to simple benefits for an end user could go a long way to helping increase the effectiveness of marketing campaigns." The same applies for things like events: people generally need a compelling reason to attend.
In response to increased demand for marketing help from its resellers, LAN Systems has developed a new program called MarketVision, which offers a range of practical and affordable services that will not break the bank.
"Resellers will be able to benefit from this service as they will be able to utilise marketing consultants that specialise in the IT industry, work closely with the vendors of the products they sell, plus it will be made more affordable for resellers to use MarketVision rather than using external marketing and advertising agencies," Russell says.
Rival distributor Express Data has been gradually ramping up its marketing efforts for resellers over the past few years and now has nine staff working across business development, event management, design and public relations. "They are constantly booked out," says marketing manager Donna Adam.
Generally she feels that while resellers are enthusiastic about marketing, they often lack planning skills. The area where this is most evident is in conducting proper database management. "Usually in combination with a campaign resellers will want to use databases that are not up-to-date or cleansed."
Online marketing firm Intersell has an exclusive marketing agreement with Ingram Micro and offers partners what it describes as a complete turnkey, e-commerce solution. As well as helping partners design their web interface, back end payment systems are supported along with features such as online access to Flexirent.
"This is a walk-up start for resellers looking for an e-commerce presence," says Intersell general manager Wayne Troy. Over time he hopes that more and more partners will realise the value of even the smallest marketing activity.
"The biggest challenge that some of the resellers in Australia face, especially the smaller guys, is understanding what marketing can do for them." It does not need to be complex or heavy handed. "Every point of contact with a client is an opportunity to market to that client," Troy explains.