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SEGMENTATION PLAYS CRITICAL ROLE IN LUCRATIVE SOFTWARE VENDOR PARTNERING PROGRAMS.


But Traditional Segmentation Methodology Can Yield Mistaken Notions Of Market

Technical training, lead generation programs, and affinity programs are "critical areas for partner program investment" for technology vendors targeting the highly coveted cov·et  
v. cov·et·ed, cov·et·ing, cov·ets

v.tr.
1. To feel blameworthy desire for (that which is another's). See Synonyms at envy.

2. To wish for longingly. See Synonyms at desire.
 value-added reseller A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution.  community, finds a first-of-its-kind study by International Data Corp. (IDC). By using an entirely new methodology to segment the partnering community, IDC says the study comes up with a "new understanding of partner requirements according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the specific business needs of partners."

The new model, says IDC, will enable vendors to "re-evaluate their approach to recruiting and supporting partners by identifying which types of partners are likely to be most effective" in delivering access to key markets.

"Our research found that traditional segmentation methodology can yield mistaken notions regarding market reach," emphasizes Stephen Graham Stephen Graham may refer to:
  • Stephen Graham (author) (1884–1975), British travel writer and novelist
  • Stephen Graham (actor) (born 1973), British actor
  • Stevie Graham (born 1982), American NBA basketball player
, vice president of IDC's Software Channel and Alliance Strategies research program. "Our results imply, for example, that logistic- oriented resellers have an important role as a product supply pipeline to large firms, particularly those customers with annual revenues of more than $1 billion. The focus of value-added resellers and service firms on midmarket opportunity is most likely the result of these firms having the domain expertise required by this market."

IDC's "Ternary (programming) ternary - A description of an operator taking three arguments. The only common example is C's ?: operator which is used in the form "CONDITION ? EXP1 : EXP2" and returns EXP1 if CONDITION is true else EXP2.  Partner Segmentation Model" divides the reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers.  universe into six major segments, based only on the relative proportion of product, service, and resale revenue: logistic-oriented resale, value-added resale, services oriented, hybrid products/services, hybrid product/resale, and product oriented.

"Partner segmentation means isolating firms that have the characteristics required to help pursue opportunity. These characteristics often include complementary functions such as logistic lo·gis·tic   also lo·gis·ti·cal
adj.
1. Of or relating to symbolic logic.

2. Of or relating to logistics.



[Medieval Latin logisticus, of calculation
 resale capability, services, or domain expertise within a specific technology or vertical market," Graham explains. "Segmentation plays an essential role in any software vendor's partner strategy and getting it right is critical for software vendors as they develop strategies to target high value-added partners for specific market opportunities."

IDC's new report, North American North American

named after North America.


North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
 Software Reseller Segmentation, Sizing, and Satisfaction, explores the structure of North America's large software resellers. It is based on discussions with 190 North American value-added software resellers with annual revenues of more than $5 million and is segmented into three sections: segmentation, sizing, and satisfaction. For more information visit www.idc.com.
COPYRIGHT 1999 Millin Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Industry Trend or Event; International Data study
Comment:SEGMENTATION PLAYS CRITICAL ROLE IN LUCRATIVE SOFTWARE VENDOR PARTNERING PROGRAMS.(International Data study)(Industry Trend or Event)
Publication:EDP Weekly's IT Monitor
Geographic Code:1USA
Date:Dec 6, 1999
Words:366
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