price per year , and is billed directly by Oracle from the 2nd year on . This has no bearing on partners ' reward .
Oracle supports partners with its own university for the training and reschooling of new consultants . A partner ' s loyalty may be increased by investing in training and marketing . Every alliance plan is supported by an Enable Plan , which provides KPIs that are reflected in the reward structure for alliance managers , for example the number of trainings and of certified consultants per partner . There is even an HRM programme for partners : for 2000 dollars , Oracle will recruit and train new consultants for partners . Finally , Oracle strives to get ex-employees assigned to marketing posts at its partners .
More in general , a distributor will be inclined to sell those products or services that yield the largest reward proportionate to his sales efforts . This makes increasing the reward an important method , but there are also a large number of non-financial methods that can incentivise the distributor . The easier it becomes to sell a product , the more such methods will be applied , even though it means a somewhat lower financial reward .
Important is first of all the attractiveness of the product or service . This is certainly also a matter of packaging , the documentation and the guarantees . Packaging that is easy to stack or to ship , a clear manual that reduces the number of customers calling the distributor for help , and an effective complaints processing procedure and guarantee policy , preferably arranged without the distributor ' s involvement , can help limit the required sales effort .
Second , a supplier can assist in the marketing . By advertising the product it can generate a pull-effect , stimulating customer demand . Additionally , the supplier can help in terms of product-push : for instance by providing in-store displays , the design of the packaging , or by offering samples or trial versions .
Investing in training materials can be useful , particularly where more complex products are involved . The supplier usually assumes that the distributor has all the knowledge and skills required to sell the product ; yet often enough the distributor even lacks commercial skills , let alone technical skills . Or perhaps the entrepreneur is sufficiently capable , but is assisted by employees that are just starting out . Good training materials , perhaps even videos to demonstrate how to sell a certain product , can significantly boost sales figures .
Non-financial factors are particularly relevant for distribution across a number of different links : here , the margin between the supplier ' s sales price and the sales prices for the end user is stretched across the various links . Although the supplier can set the price for the supply to the first distributor / wholesaler , he has no control over the price and discount structure applied further down the chain .
In such cases , non-financial methods such as providing promotion materials , in-store displays , training materials or arranging proper complaints procedures are much more effective than lowering the sales price . Projects in which the supplier ' s representatives talk to distributors far down the line , just one or two steps removed from the end user , can also prove more cost-effective than a discount campaign . Finally , the wholesaler can be rewarded for offering information and training to retailers .
For example , Coca-Cola supplies its raw materials to bottling companies , but supports the sales through mass marketing campaigns targeting consumers and by providing an infinite number of signs , banners and vending coolers to retailers all across the world . It is
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