Thee has been considerable discussion about the critical need for an effective and efficient marketing strategy for Solution Providers and the need to ensure that you are investing sufficient funds (generally expressed as MDF expenditures as a percent of Total Revenues) and to have the marketing function the responsibility of designated individuals. They are very important but the most overlooked aspect of a winning marketing strategy it -- on which MARKETING AREAS are you investing those funds?

1. Winning With A Focused MDF Strategy
Winning With A Focused MDF
Strategy
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2. Winning With A Focused MDF Strategy
Thee has been considerable discussion about the critical need for an effective and
efficient marketing strategy for Solution Providers and the need to ensure that you are
investing sufficient funds (generally expressed as MDF expenditures as a percent of
Total Revenues) and to have the marketing function the responsibility of designated
individuals.
They are very important but the most overlooked aspect of a winning marketing
strategy it -- on which MARKETING AREAS are you investing those funds?
IPED research had determined that there is a profoundly different marketing strategy
approach taken by Solution Providers that regularly achieve “Best in Class” (BIC)
business and financial performance
1) BIC are highly focused and invest their MDF in a few selective areas -- a rifle
approach versus the shotgun approach of their competitors who tend to spend more
or less evenly across the whole range; and
2) BIC leverage their marketing strategy to drive revenues within the fiscal quarter
– this is not an “awareness” strategy but more an integrated part of a sales pipeline
filling and conversion process
The chart below shows clearly that BIC Solution Providers invest more than half of all
of their MDF on a single area: marketing, and all of their funds on only three areas
whereas the average Solution Provider is investing significant amounts in all potential
areas of MDF expenditures.
One of the most critical advantages from this focused approach is that the BIC are able
to achieve the critical mass of impact in the marketplace necessary to convert their
marketing strategies from simple awareness to measurable positive impact on both
filling the pipeline and landing deals.
The BIC marketing funds themselves are also of a very different composition than
for the average, with high concentrations of referential customer success stories,
best practices in achieving ROI, and explicit roadmaps on how to avoid common
“landmines” to the success of a total solution.
MDF Best Practices have the following in common:
1) Target a Narrow Band of Activities: concentrate your expenditures on the 2-3 areas
that ensure critical mass and immediate marketplace impact -- a “Johnny Appleseed”
approach works for trees but for selling solutions; and it takes decades
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3. Winning With A Focused MDF Strategy
2) Do the RIGHT marketing: equip the sales team and your outreach to prospects with
highly actionable insight of the scope of the potential business opportunity and how
THEY can win.
3) Integrate Sales and Marketing: migrate marketing from a back office and remote
activity to one that is an integral and dynamic part of a successful sales cycle.
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4. Winning With A Focused MDF Strategy
ABOUT IPED
The Institute for Partner Education & Development (IPED) is the profes-
sional services division of the CMP Channel Group. IPED applies proven
best practices to deliver customized recommendations that accelerate
channel revenue through access to exclusive data and expert analysis.
With over 20 years of institutional knowledge, IPED is the only professional
services organization that can leverage the resources of the CMP Chan-
nel Group, the unrivaled leading provider of information and access to the
Channel. We empower vendors to understand and react to the motivators
and business value propositions that matter most to their partners.
Services for Vendors
• IPED empowers vendors to understand and react to the motivators and
business value propositions that matter most to their partners.
• This knowledge enables vendors to forge mutually profitable and long
lasting relationships with their channel partners.
• Differentiate their approach to channel partnership by enhancing their
business value proposition.
• Through data collection, analysis and interpretation, IPED provides market
intelligence that will set them apart from their competitors.
• IPED’s proven methodology helps technology vendors support to their
Solution Providers and present their portfolio of technology and business
solutions for a mutually beneficial business relationship.
For access to channel sales and marketing resources that focus on increas-
ing channel revenue, contact:
The Institute for Partner Education & Development
www.iped.com
Toni Clayton Hine
tclayton@cmp.co
212-600-3113
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