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Application Ideas
(Instructors please note:  Complete answers to these questions can be found on the Instructor Resource Center of the Pearson Website for this book.)

1. What were the drawbacks of Cisco’s distribution channel strategy prior to 2001?  What factors led to Cisco’s channel redesign in 2001?  How did these address the earlier drawbacks?  What factors led to Cisco’s decision to redesign the VAR program yet again in 2006?  What were the new features of the 2006 VAR redesign?  Do you think these were appropriate? Why or why not?

2. Conventional wisdom says that B-to-B technology companies should have more of a direct rather than indirect channel. Yet Cisco’s experience goes against this. How can you explain Cisco’s success in the light of this conventional wisdom?

3. Find a current example of a gray market. Offer your ideas for the causes and solutions.

4. Find an example of multi-channel marketing. Offer your insights about the degree of conflict, how the targets and tasks might be allocated, and whether the company is managing the channel well.

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