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Channel Design, Back Then Unfettered Customers Rethinking Channel Design Building New Channel Strategies Go-to-Market Systems Assessing Your Capabilities Devising Your Channel Strategy Implementing Your Strategy Closing Remarks
Main assumption
People with common demographic traits will shop & buy in same way
Customer type
Mainly loyal Made purchases from retailers, which served them with information and advice Stuck to the retail channels from beginning to purchase
Unfettered Customers
Traditional channel design is defunct for such customers
They can use any channel they want, w/o commitment to a single channel
Use of high-touch channels (i.e. retailers with higher prices and additional services) for information and product advices Buying the advised product/service from a cheaper channel
Research suggests that many customers may use multiple channels, both for B2B and B2C sectors.
Gathering Information
Todays channels (retailers, e-businesses) Unfettered customers (channel surfers) Use of high-touch channels for information
Go-to-Market Systems
Open System
Fragmenting/unbundling your offerings and delivering the ones your company is expected to be paid for
Captive System
Keeping your offerings bundled Binding activities together in the buying process Examples:
Staples if a product is not available in the store, customers can order it from in-store kiosks and arrange delivery Staples stores also have print catalogues customers can choose items from catalogue and order from home
Letting the customers choose from your offerings e.g. service, convenience, customization
Examples:
Toyotas website featuring a link to Edmunds, an impartial car rating service, in order to help customers compare cars Toyotas Boston dealership, adopting a transparency policy that informs customers about cars retail prices and dealers cost
Assortment Requirements
One-stop shopping If customer needs/desires a wide range of products/services, relatively open systems are more essential
Product Availability
Open systems are more desirable if your customers:
cannot predict the amount/quantity of your product/service they require, or opt for purchasing your product locally, or need immediate replacements or spare parts
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Closing Remarks
Granting autonomy for the customers dont interfere directly with customers preferred purchasing methods Conventional channels try to force customers to follow predesigned paths Try to retain the adaptability of your channels to changes do not rule out a channel altogether if there is a decline of demand in that channel Regroup your customers with respect to strategies they employ, when they buy your products/services
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THANK YOU
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