Marketing Channel Strategy


Service Output Priorities



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Marketing Channel Strategy An Omni-Channel Approach

Service Output Priorities
Lowest Total 
Cost/ Pre-Sales 
Info Segment
Responsive 
Support/ Post-
Sales Segment
Full-Service 
Relationship 
Segment
References and 
Credentials 
Segment
References and credentials
5
4
6
25
Financial stability and 
longevity
4
4
5
16
Product demonstrations 
and trials
11
10
8
20
Proactive advice and 
consulting
10
9
8
10
Responsive assistance 
during decision process
14
9
10
6
One-stop solution
4
1
18
3
Lowest price
32
8
8
6
Installation and training 
support
10
15
12
10
Responsive problem solving 
after sale
8
29
10
3
Ongoing relationship with 
a supplier
2
11
15
1
Total
100
100
100
100
Percentage of Respondents
16%
13%
61%
10%
Respondents allocate 100 points among the following supplier-provided service outputs, according 
to their importance to the company:
TABLE 10.1
Business-
to-Business 
Channel 
Segments for 
a New High-
Technology 
Product
 = Greatest Discriminating Attributes
 = Additional Important Attributes
Source: Reprinted with permission of Rick Wilson, Chicago Strategy Associates, © 2000.


END-USER ANALYSIS
334
the full-service segment. This study supports a trade-off between price and service 
outputs, recognizing that a segment’s demand for service outputs really reflects its 
willingness to pay for them—and highlights the need to include sensitivity to pric-
ing levels in any such analysis.
Some interesting insights arise from Table 10.1. First, marketing channels serv-
ing any of the specific segments need to deliver more of some service outputs than 
others. Thus, it is unlikely that any one-channel strategy can satisfy the needs 
of all segments. For example, the lowest price is highly valued in only one seg-
ment (i.e., lowest total cost segment, representing only 16 percent of respondents). 
The majority of the market simply is not driven primarily by price considerations. 
This information is invaluable for designing channel strategies that respond to the 
service output needs of customers, even if doing so implies higher prices than a 
no-frills solution might entail. In contrast, all the segments value installation and 
training support at least moderately; therefore, this support capability must be 
designed into every single channel solution. Similar insights stem from the rows 
of Table 10.1, which reveal the contrasts among segments in terms of other spe-
cific service output demands. In Figure 10.2, we provide an overview of the steps 
involved in developing a service output segmentation template.
Appendix 10.1 outlines the process in Figure 10.2 in greater detail, with prototypical 
examples for completing a service output segmentation template, which is a tool for seg-
menting end-users to facilitate targeting by specific channel structures. Accompanying 
Appendix 10.1 is a blank service output segmentation template in Table 10.2, which 
can assist channel managers conducting end-user segmentation analyses.
T A R G E T I N G E N D - U S E R S E G M E N T S
After segmenting the market and identifying each end-user segment’s distinct ser-
vice output needs, the channel manager can integrate these insights into an overall 
Step 1: Identify Segments
Being Served
Step 2: Establish Service
Output Demand for Each
Segment
Step 3: Look for Patterns
Allocate points across outputs by
segment; deine High, Medium, and
Low demand segments 
Identify which segments value a particular
output over all others
FIGURE 10.2
Identifying 
Service Output 
Segments


END-USER ANALYSIS
335
marketing channel design and management plan. In particular, this information 
should be used to:

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