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Who should use MDF?

A Marketing Development Fund (MDF) program is a common marketing strategy used by many companies, especially in the technology and channel sales industries. The typical profile of a company, its employees, turnover, and other factors that would consider using an MDF program can vary, but there are some common characteristics and situations where MDF programs are often utilised. These characteristics may include:

Characteristics

  1. Companies with Indirect Sales Channels: MDF programs are frequently used by companies that sell their products or services through indirect channels, such as resellers, distributors, value-added partners, or franchisees. These channel partners may request or be offered MDF support to help them promote and sell the company’s products.
  2. Technology and Software Companies: MDF programs are often associated with technology companies, especially those that sell software, hardware, or other IT solutions. These businesses may offer MDF support to help their partners market and sell their products effectively.
  3. High-Growth Companies: Companies that are in a growth phase and looking to expand their market presence may use MDF programs to support their partners’ marketing efforts. These companies typically have a strong focus on market share and channel development.
  4. Medium to Large Enterprises: While small businesses can also benefit from MDF programs, they are more commonly associated with medium to large enterprises that have the resources to allocate to channel marketing support.
  5. Global or Multi-National Organizations: Companies with a global or multi-national presence often use MDF programs to support their channel partners across various regions. These programs may be tailored to accommodate regional marketing differences.
  6. Competitive Industries: In highly competitive industries, companies may employ MDF programs to help their partners stand out and effectively promote their products or services. MDF can be a strategic tool to gain a competitive edge.
  7. Companies with Complex Sales Cycles: In industries with long and complex sales cycles, MDF programs can help partners nurture leads and guide them through the buying process. This is especially relevant in B2B contexts.
  8. Companies with a Diverse Product or Service Portfolio: Businesses that offer a wide range of products or services may use MDF programs to help partners choose the right mix and promote them effectively.
  9. Orgnisations with Budget Constraints: Partners who have limited marketing budgets may rely on MDF funds from the parent company to supplement their marketing efforts.
  10. Companies Emphasising Brand Consistency: Companies that want to ensure consistent branding and messaging across all channels may use MDF programs to guide and support partners in aligning with the company’s brand standards.

Summary

Turnover, company size, and employee count can vary widely among businesses that use marketing development fund programs, but it is more about the nature of the business and its distribution model. The primary goal of marketing development fund programs is to empower channel partners to effectively market and sell a company’s products or services, and they are used by companies of various sizes and industries to achieve this objective. The specific terms and conditions of marketing development fund programs can vary from one company to another, but they often involve providing funds, resources, or marketing materials to help partners execute their marketing initiatives.

If you run an existing marketing development fund program or would like to, we can help you! If you have good coffee (or tea!) you can leverage several decades of experience in our heads. Just get in touch for a no-obligation chat.