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?

Source:
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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