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TUDLA Commentary

Strengthening the Indirect Sales Model in Latin America with Direct Marketing


March 31, 2003 - El Cajon, CA Technology User Database, Latin America was founded in 1999 to support the efforts of technology providers to establish and expand their presence in Latin America, while also serving as the voice of technology users to better serve their needs. We take great pride in reporting important developments in the region. TUDLA is a witness to shifts and changes in the Technology Information Market for Latin America through our IT Decision Maker Panel. An important shift toward Direct Sales Models in the Latin American region is taking place. In a recent commentary, TUDLA highlighted Dell’s successful direct selling approach in Latin America as a model for other companies to follow. While the direct sales approach has brought positive results for companies such as Dell, and induced other companies to re-evaluate their channel strategies, it does not mean that companies with established indirect sales models should abandon their traditional indirect distribution model. On the contrary, companies such as Cisco, Nortel, and IBM are beginning a process to better understand their customers and, more importantly, their best prospects. Then, via direct marketing, they are generating greater brand loyalty within those businesses, either by offering premiums that will pull their solutions through the channel or by passing leads directly to the channel, and tracking the progress of those leads.

68% of IT decision makers say they want a direct relationship with the manufacturer!


A major Network Equipment Manufacturer that is a TUDLA client today is a prime example of how a company can increase their success by supporting partners via direct marketing. This particular client has seen its share of the switches market grow by a significant amount in the past 6 months. During this time, they have relied on weekly HotLeads from TUDLA, and their subscription to the TUDLA database, which has been designed to identify their best prospects. Now, they can directly contact primary decision-makers via e-mail, mail and telemarketing, to offer specific network solutions to best suit their needs. Their telemarketers follow-up with the TUDLA HotLeads and connect the end-user with the right indirect selling partner. This is a very affordable and efficient way for TUDLA clients to better manage their opportunities through the channel. So whether it is taking the opportunity all the way to the sale as Dell does, or passing the lead to a partner, you know that your customer’s needs are being met.

The growth occurring in this market, and with the facts that the market is far from over penetrated, and that some of the stronger brands such as HP, Epson, etc. are becoming conservative, means that the need for legitimate branded products with licensed applications for those who are interested in making a difference. What used to be a very difficult challenge - finding Latin America companies ready to make the technology investments -has been made much easier today by TUDLA and the IT Decision-Maker Panel.

TUDLA is the only database management company that specializes in the research of technology and communication usage across Latin America and the Caribbean, and maintains the largest, in depth survey of business use of technology across the region. Our mission is to support the efforts of technology providers to establish and expand their presence in the region, while also serving as the voice of technology users to better serve their needs.

To learn more about TUDLA, and our products and services, please visit our website at www.tudla.com. You may also contact TUDLA via phone, 619.442.4445 ext 106, or via email at info@tudla.com.

Entire Contents © 2003 Technology User Database, Inc. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. TUDLA disclaims all warranties as to the accuracy, completeness or adequacy of such information. TUDLA shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.


 
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