Marketing Channel Strategy

The OmnI-ChAnnel eCOsysTem
17
strategies and associated sales channels. It involves an all-encompassing, intercon-
nected, complex network. In a multi-channel world, firms rely on multiple routes to 
market, but in an omni-channel world, they must go further to develop a comprehen-
sive framework that captures a systemic view of the flows of material, information, 
ownership, financing, promotion, and supporting services across channels. An 
omni-channel view “rises above siloed behavior, unlocks values across devices and 
platforms, and delivers a more curated and interactive brand experience.”
45
 The mov-
ing parts that form the ecosystem come together and complement one another in 
their capabilities.
Accordingly, an 
omni-channel ecosystem
integrates domains that are often 
analyzed separately, namely business-to-business (B2B) and channel intermediary 
domains. Analyzing, designing, and developing the most effective go-to-market 
omni-channel structure and strategies requires a thorough understanding of both 
domains. This book combines them, but we also address the unique elements in 
separate chapters.
Specifically, in Chapters 2–5, the focus is on the 
B2B domain
, starting with 
the assumption that developing an insightful omni-channel strategy requires 
being fluent in channel fundamentals. We drill down to specify various aspects 
of managing channel functions. In Chapter 2, we cover how channels cre-
ate value and provide solutions in an omni-channel world, according to the 
functions and activities that exist in the channel and its participants. We also 
introduce the channel audits and tools that marketers can use to identify gaps in 
existing channels, along with a framework that can reveal if channel functions 
should be performed in-house or outsourced, according to a make-or-buy channel 
analysis. This chapter covers three key design questions: the degree of channel 
intensity, mix of channel types, and use of omni-channel distribution. Overall, 
the end objective must be that the channel design creates value by ensuring 
that the needs of both upstream and downstream members of the channel are 
meshed, in such a way that they can meet target end-users’ demands, with mini-
mum possible cost.
Rather than the channel design, Chapter 3 deals with channel power. Channel 
managers need to understand the source of each channel member’s power and 
dependence and potential for channel conflict to develop before they can derive a 
plan for building and maintaining relationships with channel partners. For exam-
ple, given the interdependence of channel partners who may not always have the 
incentive to cooperate fully, what should a channel captain do to ensure an optimal 
channel design? One approach is to leverage channel power. A channel member’s 
power lies in their ability to control the strategic and tactical decisions of a channel 
partner. These sources could serve to further the member’s individual ends, though 
if it uses its channel power to get channel members to perform the jobs that an 
optimal channel design specifies as their responsibility, the result will be a channel 
that delivers the demanded service outputs at a lower cost.

The OmnI-ChAnnel eCOsysTem
18
In Chapter 4, we go further into ways to manage channel relationships. 
Relationships are important for both upstream and downstream channel mem-
bers, who participate in channel relationship lifecycles. We explore ways channel 
members might build commitment and trust, but we also cover how dysfunctional 
relationships, lacking in trust and commitment, can disrupt the channel. Finally, in 
Chapter 5 we discuss the nature and types of channel conflict and how to measure 
it in channel relationships, across both multi-channel and omni-channel contexts. 
We also identify various conflict resolution strategies.
Turning to the 

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