End-User Analysis, Segmentation & Targeting
Why End-Users Matter • Channel strategy must start with how customers want to buy, not only what they buy. • Even if manufacturers sell through intermediaries, end-user demand drives the whole channel. • Different customers want different levels of convenience, speed, service, and information. What Are Service Outputs? Service outputs = non-product benefits customers get from the channel. 1. Bulk-Breaking • Ability to buy small quantities even if produced in large batches. • Example: small detergent bottle at higher unit price. 2. Spatial Convenience • How easy it is to access the product (location, delivery). • Example: 7-Eleven, vending machines, CDW delivering to offices. 3. Waiting Time / Delivery Speed • How long customers must wait after ordering. • Shorter wait = higher price; longer wait = lower price. • Example: Chipotle pre-or...