By Lawrence G. Friedman and Timothy R. Furey (Auth.)
Read or Download The Channel Advantage. Going to market with multiple sales channels to reach more customers, sell more products, make more profit PDF
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Extra resources for The Channel Advantage. Going to market with multiple sales channels to reach more customers, sell more products, make more profit
Sample text
Customer behavior, after all, is about what customers are already doing, in existing channels. When evaluating channel opportunities, though, the idea is to find an innovative and new way to meet customers in the market place. Did Dell Computer decide to sell computers over the Internet and telephone by observing existing customer buying behavior? No; there was no existing customer behavior in those channels. Dell’s innovative approach was based on very clear thinking about how customers would be willing to buy, based on what’s important to them in the PC sale: low price, exact configuration to customers’ specifications, and ease of doing business, among other things.
26 The Channel Advantage The payoff of product-market focus: the case of Southwest Airlines Southwest Airlines provides a good example of how a thoughtful definition of, and focus on, the right product-markets can deliver superior business results. Over the past two decades – in fact for twenty-four consecutive years – Southwest Airlines has been the only US airline to turn a consistent profit. 3 billion, while its major competitor, American Airlines, lost $110 million despite being seven times Southwest’s size4.
Alternatively, customers buying industrial capital goods tend to put a high premium on seller credentials, industry experience, reliability and safety. Small businesses purchasing commodity office supplies typically want fast service, low prices and reordering efficiency. Some large accounts may value a personal relationship and a partnership, while mid-sized accounts may just want efficient service and competitive pricing. In short, customers have different buying criteria, depending on who they are and what they’re purchasing.