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Presents a framework and a method for addressing the new product channel choice decision. Offers a six-step method that involves: 1) disaggregating and prioritizing a distribution channel by customers' channel function requirements; 2) obtaining and combining customers' (and key informants) evaluations of the channel functions; 3) benchmarking existing channels (own as well as competitors'); 4) identifying and constructing effective channel alternatives; 5) quantifying the short-term and long-term benefits and costs of each alternative; and 6) selecting the appropriate channel by trading off the opportunities versus constraints posed by existing channel networks (if applicable). The method requires extensive management participation to facilitate its implementation. Provides an illustrative application to demonstrate its managerial usefulness.

In mature industrial markets, segmenting customers by size, industry, or product benefits alone rarely is sufficient. Customer behavior regarding trade-offs between price and service also becomes an important criterion. This note offers a framework to enable such buying-behavior-oriented microsegmentation of industrial customers. It uses the framework to segment the national accounts of a large industrial company and show how the results of the segmentation study may be used to redirect the firm's resources and customer segments.

Traditionally, distribution channels have been viewed as vertical marketing systems where responsibility was transferred from one layer to the next, like passing a baton in a relay race. Distribution channels in the future are likely to look more like horizontal alliances of suppliers and intermediaries, all with the aim of efficiently and effectively addressing customers' real needs. These transitions, driven by an underlying change in the economics of production and distribution, are leading to distinct trends in the distribution industry. This note focuses on three primary trends: hybrid channels, multiple channels, and shorter channels. After exploring the challenges managers face as they reorient their distribution, highlights the effects of such changes on supplier-intermediary relationships.

Reebok International Ltd. is preparing to launch its first global advertising campaign for "Planet Reebok" in three European countries--France, Germany, and the United Kingdom. Planet Reebok was recently launched in the United States during the 1993 Superbowl. The company conducted market research on the Planet Reebok concept in the three countries.

Supplements Planet Reebok (A).

Eastman Kodak has suffered significant declines in film market share at the hands of lower priced branded producers and private label products. The case presents Kodak's proposal to launch a new economy brand of film to combat these rivals.

Spreadsheet supplement for case 594-111.

A rewritten version of an earlier case, Xerox Corp.: The Customer Satisfaction Program. Does not provide an update and no new content is added. The new (A) and (B) case structure merely isolates the service guarantee issue.

This is the first case in a two-part series about decisions relating to the introduction of a new product, Johnson's face powder, to the Philippines market. This case provides information about the Philippine market and the development of the introductory strategy for the product. The student is asked to assess the merit of the strategy, both in terms of market acceptance and their calculations as to projected contributions. (A two-minute video can also be purchased for this case, J & J (Philippines) Inc. - Johnson's Face Powder - Video.)

The newly appointed president of the Philippines' largest advertising firm arrives at her office to find a fax from New York. The fax says that Colgate-Palmolive is realigning its accounts worldwide. The effect of this move is that Basic/Black Zale Youngman Advertising will lose about 90% of its billings from its Philippines Colgate-Palmolive account. There are two very different discussion issues. The first issue is the decision(s) on what actions to take. The second issue is the handling of worldwide advertising in an environment which varies greatly from country to country.

What does an up-and-coming beverage company do when demand begins to exceed production? Students must wrestle with the options of cutting back on flavors or product lines and allocating demand to some outlets and geographic areas or coming up with other creative solutions to deal with the problem. Snapple also had to confront strong competitors (Coke, Pepsi, Nestea, Lipton) that were threatening to take share from Snapple in the very category it had created. The system of contract production and independent distributors further complicates Snapple's ability to implement short- and long-term solutions that would balance push-and-pull marketing. A teaching note is available to registered faculty.

Within its first two years, Saturn created one of the strongest automobile brands. This article explains how and why General Motors (GM) was able to accomplish this unique feat. It involved creating a world-class product, developing a team-oriented organization outside the GM fold, selling the company not the car, creating a new retailing strategy and relationship with the customer, and implementing a consistent communication effort. Ironically, Saturn's success raises difficult strategic issues as to its future management and its role in the future of GM.

A senior executive's instinctive capacity to empathize with and gain insights from customers is the single most important skill he or she can use to direct a company's strategic posture. Yet most top managers at industrial companies consider customer contact the bailiwick of sales and marketing staff. And even if they do believe market focus is a priority, most retain only limited contact with consumers as their organizations grow, relying instead on subordinates' reports to define and sense the market for them. Such approaches are dangerous. First, most industrials define "customer" as the next entity in the distribution channel and requisition reports accordingly. But to get a true sense of the market, senior executives should consider the wants and needs of every step in the distribution chain. Another danger is that senior executives at industrial concerns often confuse information with knowledge. Managers faced with too much general market data tend to average results, blur boundaries, and miss distinct, segmented market opportunities. Finally, unless senior executives make market focus a strategic priority, they will not be motivated to initiate organizational change.

Facing competitive pressure from local health care suppliers and a shift in patient demand, the hospital's executive management team develops a strategic plan to reposition the hospital, including investment in new technology and upgraded facilities to attract leading-edge physicians and nursing staff. As part of this plan, they hire design consultants to create a new corporate identity for the hospital. This case examines this complex project, focusing on the relationship between marketing and design as they work through the renaming of the hospital, the creation of a new identity to satisfy the various publics served by the hospital, and implementation of a communications plan.

Follows the implementation of the corporate identity.

Wegmans is considered the "best" food retailer in the United States by Fortune Magazine. The produce department has been a key distinguishing feature of the store. The changes in the U.S. and global produce industry are forcing Wegmans to rethink its role in the industry. Teaching Purpose: The produce industry is an excellent example of the revolution occurring in the food industry. Enables students to evaluate changes in the produce industry.

In August 1991, Procter & Gamble Inc. (P&G) acquired Facelle Paper Products, a Toronto-based manufacturer of tissue, towel and sanitary products, for $185 million. By March 1992, P&G was prepared to consider a major repositioning of the Facelle brands (Royale and Florelle) in the facial tissue market. The product formulation, their brand names, pricing, and advertising strategies were all under review.

Discusses the key differences between industrial-product and consumer-product marketing. Also outlines the key management challenges facing industrial marketers.

In response to recent trends in grocery retailing, Marsh Supermarkets has completed an intensive 65-week study of the activity at 5 superstores in the midwest United States. The study tracked the sales, profits, space, and promotion dynamics of the entire store: dry grocery, general merchandise, health and beauty care, and perishables. (These data are provided in the case exhibits.) Management hoped the study would provide insights on how and why products sell, identify product categories of greatest strategic importance, and spot inefficiencies in store operations.

This case serves as an introduction to field sales management. A manager must address three sales representatives' ingrained behaviors in order to implement a major shift in marketing strategy. Students should recognize the nature of the "man-in-the-middle" squeeze: the manager caught between the pressure of implementing a new strategy from the top and the resistance to change from the bottom.