Evaluating a New Distribution Channel

The following six questions are helpful in evaluating the opportunity presented by the new distribution channel:

  • How attractive is the value proposition that the new distribution channel gives our target segments?
  • Is the proportion of our target segment attracted to the new channel large enough to demand our attention?
  • Do we have a differentiated value proposition or an operational advantage in serving customers through the new channel?
  • Is our cost structure and value network optimized to serve customers through the new channel?
  • What can and will competition do with the new channel?
  • How will the new distribution channel change consumer channel preferences and strategies of existing channel members?

The Strategic Role of Marketing
by Manda Salls
HBS Working Knowledge, May 31, 2004
Note: From the book Marketing as Strategy by Nirmalya Kumar

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