Marketing Channel Strategy


Value-Added Resellers (VARs)



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Marketing Channel Strategy An Omni-Channel Approach

Value-Added Resellers (VARs).
Designers, engineers, or consultants for 
a variety of service industries that joint venture or have arrangements with 
manufacturers of products used in their designs. The VARs often get a commis-
sion or discount to service the product and carry inventory of high-turnover 
items.
Examples: Computer software companies that market hardware for turnkey 
products; security system designers that form joint ventures with electronics 
manufacturers to sell turnkey products.
12. 
Influencers/Specifiers.
Similar to a VAR, but these firms generally design 
highly complex, large projects (commercial buildings), do not take title to 
product, and have a group of suppliers whose products can be specified to the 
design. Selling effort is focused on both the ultimate customer and the speci-
fier. Distribution of product is handled through other channel formats.
Examples: Architects, designers, consultants.
13. 
Financial Service Providers.
These formats have historically been initiated 
by joint ventures with financial service companies to finance margin purchases 
for customers or dealers (e.g., floor planning). They have been expanded to 
allow manufacturers to initiate distribution in new markets and assess these 
markets. High-capital, highly controlled distribution channel for one or two 
suppliers.
Examples: Branded chemicals, construction equipment.


The OmnI-ChAnnel eCOsysTem
29
Other Channel Formats
1. 
Door-to-Door Formats.
To some extent, these are variations on the channel 
formats previously listed. These formats have existed in the United States since 
pioneer days for products with high personal sales costs and high margins, sold 
in relatively small orders (encyclopedias, vacuum cleaners). A wide range of 
variations (e.g., home-party format) attempt to get many small buyers in one 
location to minimize the sales cost and provide a unique shopping experience. 
Variations of the format have also spread to industrial and commercial markets 
to capitalize on similar market needs (e.g., Snap-On Tools uses a variation of 
the home-party system by driving the product and salespeople to mechanics’ 
garages and selling to them on their lunch hours). Each format is different and 
needs to be analyzed to understand its unique characteristics. A brief summary 
of the more identifiable formats follows:
a. 

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