Marketing Channel Strategy
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| SERVICE OUTPUT DEMAND
Segment Name / Descriptor Bulk-Breaking Spatial Convenience Delivery/ Waiting Time Assortment / Variety Customer Service Information Sharing 1. 2. 3. 4. 5. Instructions: If quantitative market research data are available, enter numerical ratings in each cell. If not, adopt an intuitive ranking system, noting for each segment whether demand for the given service output is High, Medium, or Low. N O T E S 1 The sources for this Sidebar include Campbell, Scott (2003), “CDW-G calls on VARs,” Computer Reseller News, November 17 (No. 1071), 162; Campbell, Scott (2004), “CDW snags companywide Cisco pre- mier status: Relationship advances reseller’s bid to build services business,” Computer Reseller News, 12, April 12; Gallagher, Kathleen (2002), “CDW computer remains afloat despite market’s choppy waters,” Milwaukee Journal Sentinel, September 29, 4D; Jones, Sandra (2004), “Challenges ahead for CDW: Dell deals make inroads in already difficult market,” Crain’s Chicago Business, June 28, 4; Kaiser, Rob (2000), “Vernon Hills, Ill., computer products reseller has an approach to win business,” Chicago Tribune, August 16; McCafferty, Dennis (2002), “Growing like gangbusters: Sales at Chicago-area CDW- government shot up 63 percent from 2000 to 2001,” VAR Business, July 8; Moltzen, Edward (2003), “Looking for SMB traction, Gateway inks reseller pact with CDW,” CRN, May 26, 55; O’Heir, Jeff (2003), “CDW teams with small VARs to access government biz,” Computer Reseller News, August 25 (No. 1059), 6; O’Heir, Jeff (2003), “Time to move on,” Computer Reseller News, October 20 (No. 1067), 98; Schmeltzer, John (2003), “CDW pulls out the stops to reach small business,” Chicago Tribune, September 8; Zarley, Craig and Jeff O’Heir (2003), “Seeking solutions: CDW, Gateway and Dell come calling on solution providers for services expertise,” Computer Reseller News, Vol. 16, September 1. 2 http://investor.cdw.com, date retrieved June 12, 2018. 3 www.dell.com/learn/us/en/uscorp1/press-releases/2015-10-12-dell-and-cdw-expand-partnership, date retrieved June 15, 2018. 4 Lucy, Jim (2018), “31 flavors,” Electrical Wholesaling, March, 4. 5 Boryana, Dimitrova and Bert Rosenbloom (2010), “Standardization versus adaption in global mar- kets: Is channel strategy different?” Journal of Marketing Channels, 17 (2), 157–176. 6 Diamond, David (2007), “Wall of values,” Progressive Grocer, 86 (15), November 1. 7 USDA Gain Report, Report Number: CH0001, 1/26/2017. 8 Bucklin, Louis P. (1966), A Theory of Distribution Channel Structure, Berkeley, CA: IBER Special Publications; Bucklin, Louis P. (1972), Competition and Evolution in the Distributive Trades, Englewood Cliffs, NJ: Prentice Hall; Bucklin, Louis P. (1978), Productivity in Marketing, Chicago, IL: American Marketing Association; see pp. 90–94. 9 Sailor, Matt, “10 things you should buy in bulk,” HowStuffWorks, www.money.howstuffworks.com. 10 Jain, Sanjay (2012), “Marketing of vice goods: A strategic analysis of the package size decision,” Marketing Science, January, 36–51. END-USER ANALYSIS 343 11 Ibid. 12 https://venturebeat.com/2017/02/26/mobile-ordering-lets-customers-cut-in-line-and-thats-a- problem, date retrieved June 20, 2018. 13 www.greatclips.com, date retrieved June 20, 2018. 14 “Price of elasticity of demand,” Convention Center Task Force, San Diego County Tax Payer Association, July 31, 2009, www.conventioncentertaskforce.org. 15 Daniels, Cora (2003), “J.C. Penney dresses up,” Fortune, 147 (11, June 9), 127–130. 16 Wahba, Phil (2016), “The man who’s re-[re-re] inventing JC Penney,” Fortune, March 1, 77–86. 17 Ibid. 18 “Hot Topic, Inc. reports 1st quarter financial results,” Hot Topic Inc., May 18, 2011, www.investor relations.hottopic.com. 19 www.theacsi.org/index.php?option=com_content&view=article&id=147&catid=&Itemid=212&i=S ubscription+Television+Service, date retrieved June 20, 2018. 20 Moran, Francis (2012), “Don’t wait until your customers say goodbye to tell . . .” Francis Moran and Associates, September 20. http://bx.businessweek.com. 21 Helliker, Kevin (2002), “Retailer scores by luring men who hate to shop,” The Wall Street Journal Online, December 17. 22 Saranow, Jennifer (2004), “Show, don’t tell,” The Wall Street Journal Online, March 22. 23 Kasturi Rangan, V., Melvyn A.J. Menezes, and E.P. Maier (1992), “Channel selection for new indus- trial products: A framework, method, and application,” Journal of Marketing, 56, 72–73. These authors define five service outputs in their study of industrial goods: product information, product customization, product quality assurance, after-sales service, and logistics. Some outputs are specific examples of the generic service outputs defined by Bucklin (e.g., logistics refers to spatial conve- nience and waiting/delivery time), yet their work also highlights the value of being aware of the specific application. 24 Stanek, Steve (2003), “Custom tailor finds house calls often worth the trip,” Chicago Tribune Online Edition, July 13. 25 Mediratta, Arvind (2018), “The Kirana store will remain evergreen,” Hindu Business Line, www.the hindubusinessline.com/opinion/columns/the-kirana-store-will-remain-evergreen/article24016592. ece, date retrieved June 19, 2018. 26 Ibid. 27 Anonymous (2014), “A long way from the supermarket,” Economist, October 18. 28 Ibid. 29 Such data sometimes already exist. For example, in the computer industry, data on service outputs valued by end-users are collected by firms like IntelliQuest, Inc. and International Data Group. 30 Forte, Daniela (2015), “How 1-800-Flowers rode the wave of change,” http://multichannel merchant.com/must-reads/1-800-flowers-rode-wave-change, date retrieved June 19, 2018. 31 Ibid. 32 Shropshire, Corilyn (2018), “Amid sagging sales and a shrinking stock, FTD sees way forward in new HQ, tech investments,” Chicago Tribune, May 29. 33 Ibid. 34 www.1800flowers.com/about-us-company-overview, date retrieved June 19, 2018. 35 Stanek (2003), op. cit. 36 See www.fandango.com for more details. 37 Ailawadi, Kusum L. and Paul W. Farris (2017), “Managing multi-and omni-channel distribution: Metrics and research directions,” Journal of Retailing, 93 (1), 120–135. 38 Herhausen, Dennis, Jochen Binder, Marcus Schoegel, and Andreas Herrmann (2015), “Integrating bricks with clicks: Retailer-level and channel-level outcomes of online–offline channel integration,” Journal of Retailing, 91 (2), 309–325. END-USER ANALYSIS 344 39 Cao, Lanlan and Li Li (2015), “The impact of cross-channel integration on retailers’ sales growth,” Journal of Retailing, 91 (2), 198–216. 40 Grewal, Dhruv, Anne Roggeveen, and Jens Nordfalt (2017), “The future of retailing,” Journal of Retailing, 93 (1), 1–6. 41 Neslin, Scott A., Kinshuk Jerath, Anand Bodapati, Eric T. Bradlow, John Deighton, Sonja Gesler, Leonard Lee, Elisa Montaguti, Rahul Telang, Raj Venkatesan, Peter C. Verhoef, and Z. John Zhang (2014), “The interrelationships between brand and channel choice,” Marketing Letters, 25, 319–330. |