Multichannel Sales Strategy
Brands need to make two strategic decisions about how they competitively represent their products online:
1. Online product availability: purchase vs. demand-generation
2. Online pricing: channel optimized vs. equal to retail
Managing Sales Channel Conflict
* Some sales channel conflict is inevitable
– Between brands and retail/etail partners
– Silos within the brand’s organizational structure (e.g.retail sales vs. ecommerce).
* Be aware of retailer perceptions
– A brands’ direct-to-consumer online prices may be interpreted as de facto MSRPs.
* Brands typically go through three phases of managing sales channel conflicts:
– Avoiding them
– Managing them
– Rationalizing them
Evolution of Ecommerce Strategy
To Be Continued………..
1. Jie Zhang, Paul W. Farris, John W. Irvin, Tarun Kushwaha, Thomas J. Steenburgh and Barton A. Weitz (2010). Crafting Integrated Multichannel Retailing Strategies. Harvard Business School Working Paper 09-125.
2. http://www.zeromomentoftruth.com/google-zmot.pdf , p. 16.
3. Mastering Online Customer Acquisition: Ecommerce & Digital-Influenced Sales. Stacy Smollin Schwartz.