Channel design and implementation is a core function of the sales process. It is

Question

Channel design and implementation is a core function of the sales process. It is important to gain an understanding of this process and develop the skills necessary to deliver a solid channel design and implementation plan.

Drawing on what you know about the channel design process, respond to the following:

Once an organization has identified multiple target markets, should it attempt to capitalize on each market identified?

What are the important considerations that are tied to this decision?

Give reasons for your answers. Be sure to use authoritative sources to support your position. Write your initial response in 3–4 paragraphs.

Explanation / Answer

Yes, the organization should attempt to capitalize on each identified market through designing and deployment of effective channels. For each of the multiple market, the channel should be designed outside-in, i.e with a focus on the customer. Here multiple channels will be used to reach multiple customers. This will increase opportunity for the organization and the organization should capitalize it.

Secondly, having multiple channels for multiple markets will help the organization reach the right customer at the right time. But any overlap of channels will have to be avoided by the organization. Reaching multiple target markets through multiple channels will also ensure sufficient coverage for the product.

Importnat considerations that are tied to this decision are: (i) Value proposition from the channel partners - the channel partners should provide cost effective means of reaching to the customers (ii) the channel design for the multiple target markets should help in grabbing the right amount of mindshare of the target customers. (iii) the current stage of product life cycle and its impact on the channel design will also have to be considered.

Sources:

http://sloanreview.mit.edu/article/strategic-channel-design/

http://www.aeroconsult.dk/competencies/sales-and-distribution-channel-design/

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