Ch. 11 Integrating Internet Into the Multiple Channel

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 Multiple Channels: High 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 • 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: 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