Marketing Channel Strategy



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Marketing Channel Strategy An Omni-Channel Approach

endless aisle
that sells virtually everything. Some items that the retailer carries in-store, such as 
those with high weight-to-value ratios, including bags of cement or large packages 
of rice, may not be worth the shipping costs and should be designated for only 
in-store or click-and-collect channels.
As this example suggests, a good omni-channel seller integrates inventory and 
pricing information across channels, to avoid cross-channel competition or con-
fusion among consumers. Firms might designate and clearly mark certain items as 
only available online; if they charge different prices across channels, they should 
offer a clear description and explanation for why. When Walmart acquired Jet.com, 
it also gained access to Jet’s proprietary smart cart technology that relies on real-
time dynamic pricing mechanisms and adjusts the prices customers pay for the 


OMNI-CHANNEL STRATEGY
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items in their electronic shopping basket, according to the number of items they 
order, where in the supply chain the items are located, and whether a customer is 
willing to forgo return privileges.
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With regard to their inventory management, the best solution matches sellers’ wider 
strategy. Retailers operating just a few locations might be better served by a centralized 
inventory management system, but such a design could be risky if the central location 
experiences bad weather or other disasters, such that it cannot react with sufficient 
speed to shifts in demand in other geographical locations.
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 Larger operations thus 
tend to adopt hub-and-spoke models, with larger stores acting as hubs that ship orders 
to both smaller stores and to customers who have ordered online.
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In this setup, the 
sellers need a sophisticated order management system to synchronize inventory across 
hubs, spokes, and distribution centers, in an effort to find the least expensive means 
to get products to consumers quickly, while also avoiding stockouts anywhere in the 
supply chain. In essence, technology can get customers the products they want, at a 
time and place of their choosing, according to what they are willing to pay. Retailers 
increasingly rely on artificial intelligence (AI) tools to make this a reality.
Obviously, the use of technology is not limited to product markets. It can motivate 
consumers to sign up for 

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