Market Development Funds(MDF) is playing the key role in Co-Marketing with the direct or indirect channel partners to Increase the Brand Awareness, Increase the partner loyalty and Co-Generate the market Demand, Increase the Win-Win Situation with the channel partners.

Channel marketing funds enable brand owners to manage and distribute marketing funds to their channel partners more efficiently and to increase the effectiveness of their channel marketing expenditures.

Channel marketing funds are provided by brand owners (for example, manufacturers) to their channel partners to execute marketing activities and to allocate funds to a specific geographical area or product (groups) to go the last mile to the customer, who is often anonymous for the MDF program owner.

Channel marketing funds are a resource available to channel partners (for example, distributor, VAR, dealer) to fund demand generation activities that will increase sales and generate leads and business opportunities.
Channel marketing funds are not sales incentives (such as high quality golf equipment) or promotions (such as a special product discount).

The purpose of channel marketing funds is to extend your marketing reach and multiply your marketing dollars by leveraging your channel partners.

Funds are set up based on the underlying business plan per channel partner. It will develop over time based on the actual channel partner sales performance or it is based on a given fixed amount.

A fund can be related to funded initiative templates to request funded initiatives. The funded initiatives themselves may include trade shows, e-mail campaigns, seminars, advertising, joint collateral, and so on.
Upon prior approvals (funded initiative, claim), channel partners will receive specific reimbursement for the negotiated expenses associated with the specific initiative.

   SAP CRM General Functions

Last Updated@July 2008