I believe that channel images must be consistent with the brand image. Marketing channels also represent a substantial opportunity cost. One of their chief roles is to convert potential buyers into profitable customers. Marketing channels must not just serve markets, they must also make markets (Kotler, 2012). A perfect example of this is based on the General Electric appliance case study we just did. While product pricing was lowering, General Electric decided to develop innovating appliances which targeted certain consumers. With this, they were able to sell their upscale products at a higher price and protected their brand by limiting their channel to distributors. General Electric developed a program where customers had to sign up and support the particular brand, thus being consistent with upscale appliances and protecting the brands image.
This is a great example of a topic covered previously. GE was effective in not alienating their core demographic of customers when developing innovative appliances targeting higher-end customers. Instead of ...
This solution discusses General Electric and its high-end collaboration with companies.