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Ch. 11 Integrating Internet Into the Multiple Channel

This document discusses the integration of internet channels within a multi-channel strategy, highlighting that customers independently choose their preferred channels. It examines the challenges associated with having multiple channels, including high costs and the necessity for customer channel migration. The role of the internet is analyzed, outlining three alternative uses: as a standalone, part of an integrated channel, or in a combined approach. Additionally, it covers channel stewardship strategies, particularly in sectors like pharmaceuticals, airlines, and the movie industry, emphasizing the importance of trust, transparency, and operational effectiveness.

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Ch. 11 Integrating Internet Into the Multiple Channel

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  1. Ch. 11Integrating Internet Into the Multiple Channel • The Crux of the Problem: Customers Choose the • Channel, it is not the other way around • II. Downside of Having Multiple Channels: High Channel • Cost  Need for Customer Channel Migration • III. Internet may or may not be a “stand alone” channel • For developing a new market segment • For serving an existing market segment

  2. Ch. 11Integrating Internet Into the Multiple Channel IV. Three alternative uses of Internet 1. Stand-alone channel 2. Part of an integrated channel 3. Stand-alone, integrated channel: ex) Merrill Lynch V. The New Wrinkle: Customer Life Cycle and Channel

  3. Ch. 11Integrating Internet Into the Multiple Channel • VI. Three Flavors of Multiple Channels • Integrated • Coordinated (Segmented) • Competitive

  4. Ch. 12Strategy and Implementation of Channel Stewardship • A Key Mistake: Viewing Channel Strategy • as the implementation arm of business strategy • II. Pharmaceuticals: The Strategy of Channel Acquisition • 1. The Role of PBMs • 2. Shifting Environment • 3. The Channel Stewardship Challenge

  5. Ch. 12Strategy and Implementation of Channel Stewardship III. Other Channel Challenges Calling for Strategic Action 1. Airline Industry 2. Movie Industry IV. For Top Managers: Seeing Channels as a Collection of Capabilities V. For Operational Managers: A Balanced View - Trust and Transparency - Power and Control - Channel Value Chain Performance

  6. Ch. 12Strategy and Implementation of Channel Stewardship V. The Channel Stewardship Process - Mapping - Building and Editing the Channel Value Chain * No one owns this function - Aligning and Influencing the channel system

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