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Viewsonic wants better ROI from channel marketing funds

Microscope contributor

A 'try before you buy' promotion launched by Viewsonic could herald a dramatic shift in the way it dishes out marketing funds to resellers and distributors.


The initiative which runs until early next month is designed to get the US brand closer to UK consumers and may be extended depending on its success.


James Coulson, European marketing manager at Viewsonic said he had become concerned by the lack of return on investment from the MDF given to partners.


"We have become a little disillusioned that some partners want marketing resources to simply fund their business model rather than generate sales," he said.


In the past eight months Viewsonic has expanded its product range, albeit later than other traditional monitor vendors, to include portable and All-In-One PCs as well as projectors.


Coulson said not many resellers have not proactively sold its new range to consumers or businesses, while retailers required substantial and often unreasonable MDF to position its brand at the front of house.


"For every £100 that is put into the supply chain, £15 reaches the user in terms of marketing," he said.  


Resellers Misco, Insight, eBuyer, Scan, CCL and Novatech have signed up to the try before you buy pilot which allows consumers and micro businesses to buy a PC system and return it for free inside 30 days if they are not satisfied.


Viewsonic has factored a 5% to 10% returns rate of all products delivered - but the reseller keeps the margin based on the initial sale even if it is returned.


Coulson said that if the process was deemed a success, MDF could be re-segmented permanently.


"We are evaluating all of our resellers and expect to be focused on those that are driving our sales. There is a finite amount of marketing funds. We want to work with resellers that cover our target audience and demonstrate worth," he said.


Ed Bateman, Bell Micro director of commercial products said vendors could not get "guaranteed ROI" from marketing programmes but suggested Viewsonic "place the money where it can get the best return," adding "we'd be happy to help."

Related Topics: Desktop PCs, VIEW ALL TOPICS

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