VOLUME 01 ISSUE 03 "PRESERVING THE TRUTH OF THE UW BUSINESS SCHOOL" 04 MARCH 2005

Ask Dan Turner!

Dan Turner
By Daniel J. Turner

Dear Dan: Our company is considering the introduction of a new product, but we're not sure if we should sell direct or use a channel strategy. What are the pros and cons of each?
– Direct Or Dealer

Dear DOD,
That's a great question, and one that the marketing discipline is well-geared to answer. So, I have a question for you: have you seen my Big Picture diagram? I created it because it shows, well, the Big Picture, and so is useful as a framework for understanding marketing concepts.

If we look at the Big Picture - and it's really a fine, fine piece of artwork, as you can see - then we'd see that your question falls under the "collaborator" category. As in, "who should we collaborate with?"

Before I answer the rest of the question, though, I'd like to divert your attention to the desktop picture of my PC, which shows a photo of, what is, objectively, the Cutest Toddler In The World. There she is. She's cute! No question. Now, I'm not saying that other toddlers are ugly or anything, but let's just say that this toddler's cuteness really skews the mean in a positive direction.

Oh, so - your question about channels. In order to make a good decision, you might consider a number of factors, from incentives to contribution margin. However, I see that we're a little tight on time right now, so if you have more questions I'd be glad to take them offline.

Dear Dan: I'm a Product Manager in charge of a line of laptop computers. I'd like to know whether my customers value a lower price, larger screen, or faster processor. Can you suggest any good tools or techniques for learning this?
–Puzzled In Austin

Dear PIA,
If we refer back to the Big Picture, we can see this box, "customer", which contains the set of activities you're asking about.

Before I start answering your question, this actually reminds me of my BMW story. I, like many people of taste and distinction, drive a BMW. And I have recently had some problems with my BMW. So I take my car in to the BMW dealership, ostensibly to drop it off and have them fix said problems. When I return to the dealership, however, these problems - the ones they said they would be fixing, and the ones that were the reason I dropped the BMW off in the first place - are not yet fixed. So I complain. And then I get this letter. Let's examine the letter.

Actually, my cool USB watch says that we're close on time, so I'll show you all the letter tomorrow, when you can also look at more photos of the Cutest Toddler In The World. If you need more clarification about your question, please come see me after class or during office hours.

Dear Dan: I turned 50 this year, and am worried about my health. I've found myself huffing and puffing a lot more when I climb stairs, and am heavier than I've been in a long, long time. Recently, I've been getting back pain. Any suggestions?
–Concerned

Dear Concerned,
That's a good question, but you know what it reminds me of? Office Space. No, seriously, because the character of Milton is a little older, carrying a few extra pounds, and obviously has rage issues. Not that you have rage issues, but if you worked for Initech - do you work for Initech? - you probably would.

Oh, so the pain. Well, we'd need to know a bit more about you to be able to make any kind of diagnosis. Since, demographically, I'm identical to both Rush Limbaugh and Brad Pitt, it's pretty obvious that demographics alone aren't going to be enough. Probably, reasonable people would want to know more about lifestyle, psychographics, and key beliefs. If we think back to the Biopure case, it's pretty clear that the attractiveness of key customers is more about these other factors - do people want, for instance, cow's blood in their veins? - to make a decision.

Unfortunately, we're up against the bell again, so let's talk about this more next time. See you Tuesday!

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