“The Customer Has

Escaped”

By Paul F. Nunes and Frank V.

Cespedes

Group members:
Badar Masud
(070711)
Haleema Haq
(070719)
1. “The Customer Has
Escaped”
Purpose of the research
 Traditional go-to-market strategies
 Assumption regarding customers
 Time for change
2. How times have changed

 Things used to be
 Things are now like
 Effect on companies
 How to cope with the situation
3. Channel design as you know
it
 Assumptions
 Old people
 Result
4. The unfettered customer

a. Same strategies no longer viable

 Adversarial shoppers
 Strategic minded
 Exposed to information
4. continued..

b. Increase in channels
Example: ATM
c. Customers-five predictable stages
d. Variance in behaviour
5. A new logic for channel
strategy
 Market research tools
 Questions for self-assessment
(company)
 Types of buyers
 Non-consistent buying behaviour
6. Building new pathways

 Follow buyer paths

 Goal
 Provide links
7. Open or captive go-to-
market systems
 Open go-to-market system
Example: Toyota
 Captive go-to-market system
Example: Staples
8. What capable are you of?

Questions
a. Open vs captive system
 Level of product and service integration
(captive)
 Assortment requirements (open)
 Product availability (open)
 Product quality assurance (captive)
8. continued..

b. Strategy – basic forms

 Specializing in one phase of distribution
 Coordinating the information flow of
many specialists
 Combining several channel roles
 Exploiting customer relationships
9. Making it work

a. Implementation
b. Goals
 A shared understanding (Staples)
 Cross-channel performance metrics (Gap
+ Tesco)
 Targeted education and Learning (DELL)
10. Wisdom from across the
channel
 Competition between channel systems
 “Never get between your customers and
the way they want to shop”
 Keep an in with your outs
11. Evaluation

a. Focused on:
 Channel design

 Strategies

b. Advantages
 Help a lot in building CR

 Retain customers

 Cut down on unneeded costs

11. continued..

c. Disadvantages
 Huge Investment – research
 Difficulty in prediction of buyer behaviour
 Difficulty due to competition
 Well-known companies at benefit
12. Implications

 Immune to market changes to a great

extent
 Prepared for the unexpected and
inevitable
Questions…..if any