Marketing Channel Strategy

Index
367
exploitation 97, 302–305
export management companies (EMCs) 296
export trading companies 296–297
exporting 295–302; see also international 
markets
failure fees 203
fairness: channel conflict 161; channel 
relationships 124, 126–127; franchising 
281–282
fandango.com 335–336
farm cooperatives 232–233
Farmacias Similares 88
favorable ratings 280
federations of wholesalers 228–235
fee-for-service models 243–244
Feige 42
felt (or affective) conflict 142–143
field supervision 259
filters, wholesalers as 227
financial capital for growth, franchises 261
financial leverage 184
financial service providers 28
financing (as channel function) 43,  
48–49
focus, channel conflict 151–152
food retailers: channel relationships
135–136; classification of 26–27,  
172–175; market segmentation 322
Foot Locker 150–151
forward buying 201
fragmentation 236
France: Carrefour 299; direct selling 
233–234
franchise disclosure agreements 252, 
253
franchising 249–251; arrangement of 
253–254, 254–256; benefits of 256–266; 
challenges 280–285; channel formats 25; 
formats 251–252; go-to-market strategies 
2–3; international markets 300–302; 
marketing channels 18; omni-channel 
strategies 285–287, 357; reasons not 
to franchise 266–267; strategies for 
267–280
free on board (FOB) 208
freeriding 154, 260
freight allowances 208
French and Raven approach 84
Fulfillment by Amazon (FBA) 3
full-line wholesalers 220
functional conflict 145–147
future datings 208–209
gap analysis, marketing channel system 
59–71
General Motors 37
generic investments 121–122
global context see international markets
goal congruence 124
goal incongruence 282–283
goals: channel conflict 148, 150–151; 
channel relationships 124; franchising 
282–283
Godrej Group 307–308
Gore-Tex® 92
go-to-market strategies 2–3, 16–17
Grainger 20, 218
gray markets 157–160, 203
Great Clips 268–269
groceries see food retailers
gross domestic product (GDP) 294–295
gross margin 213
gross margin of profit 209
gross margin per full-time equivalent 
employee (GMROL) 186
gross margin per square foot (GMROS) 186
gross margin return on inventory (GMROI) 
185, 209
Gujarat Co-Operative Milk Marketing 
Federation 233
H&M 74, 181, 183–184
healthcare industry 353–354
Hewlett-Packard (HP) 84, 329
holding companies 229
Hollar 12
Home Depot 359
honesty 121
hostage exchanges 268
hotel industry 16
house accounts 118
human capital 263

Index
368
hybrid shopping: as contemporary trend 
14–15; omni-channel strategies 13; retail 
strategies 192, 196–199; showrooming 5, 
177–178, 197
hypermarkets 27, 172
idiosyncratic investments 118–120
incentives: channel conflict resolution 
165–167; channel functions 52–53
independent electronic exchanges 241
index of manifest conflict 144–145
India: consumer electronics 155–156; 
international market 294; omni-channel 
strategies 22, 312; sanitary pads case 
study 311–312; service outputs 330–331; 
Starbucks 301
indifference, channel conflict 146–147
industrial distributors see distributors
influence, and power 83–84
influence strategies 100–101
influencers 28, 31–32
information: channel power 89; retailers 
193–194; wholesalers 227
information sharing: channel conflict 
162, 164; channel functions 43, 49–50; 
channel relationships 111; market 
segments 328–329, 340–341;  
omni-channel strategies 14; search 
facilitation 37–38; see also research
initial markup 209
institutionalization, channel conflict 162
insurance industry 13, 286
integration of channels 5, 13–14, 345; see 
also channel conflict; omni-channel 
strategies
intensity, channel design 44–45
Intercore Resources 229
interdependence 96–97
intermediaries 18; adding value and 
reducing costs 40, 41; contemporary 
trends 15–16; international markets 
295–302; marketing channel actors 6–7, 
9–10; wholesalers as 217–218
intermodal services 27
international franchising 300–302
international markets 18, 293–295; 
distribution challenges 302–312; 
intermediaries 295–302; omni-channel 
strategies 312–314; wholesalers 237
international retailers 297–299
Internet see online; online shopping
intrachannel competition 152–153
inventory replenishment (retail strategies) 
180–186, 188–189, 201, 211–212
inventory-holding costs 47
investments, channel relationships 118–120, 
121–122
Japan: export trading companies 296; Sojitz 
297 wholesalers 225
JCPenney 327
Jet.com 354–355
John Deere 109–111
joint membership in trade associations 162
Karoll 330, 335
Kirana 330–331
knowledge of customers 350–352
Kroger 204–205
laboratories, franchises as 277–278
latent conflict 142
leasing (franchises) 270–271
legal context see regulatory context
legal legitimate power 90
legitimate players (franchises) 280
legitimate power 89–90
Lenovo 155–156
Levi-Strauss 346
licensing agreements 25
limited assortment supermarkets 172–173
location see place
locker stock 25
logistics providers 224
L’Oreal’s Make-Up Genius 353–354
Louis Vuitton 158
loyalty see brand loyalty
mail order 26
maintained markup 209

Index
369
make-or-buy channel analysis 17, 70–71
managerial bounds 61
managerial capital for growth, franchises 261
managerial scarcity problem 262
manifest conflict 147–148
manufacturer direct channels 24
manufacturer outlets 25
manufacturer-led wholesaling initiatives 
229–230
manufacturer-owned full-service wholesaler 
distributor 24–25
manufacturers: buy direct approach 
244; as channel captains 7; channel 
formats 24–25; channel relationships 
108–112; channels as gateway to 
consumer 36–37; distributor pricing 
223; gray markets 159–160; hybrid retail 
197–199; marketing channel actors 6, 
8–9; marketing channels 3–4, 4; omni-
channel benefits 101–102; omni-channel 
strategies 349; vertical integration 
with wholesalers 244; wholesaler 
consolidation 235–237; see also upstream 
channel members
manufacturers’ sales branches 223–224
margins (retailer strategies) 180, 184, 186, 
187, 199–200, 209; see also gross margin
market differences 275
market research 93, 112, 338
market segmentation: bottom-of-the-
pyramid 305–312, 324–325; channel 
relationships 134–135; end-users 18–19, 
319–322; omni-channel strategies 
332, 336–337; service output template 
338–341, 342; service outputs 323–334; 
targeting segments 334–337
marketing channels see channels
marketing mix elements 1–2
markup 209
mass merchandisers 26
master distributors 221–223, 222
master franchising 300–302
McDonald’s 2–3, 254–256, 282
mediation, channel conflict 163
merchandise budgeting 211–213
merchandise control 211
merchandise cost 209
merchandise planning 211
Michaels Craft Stores 186
Microsoft 329
middlemen see intermediaries
mobiles: integration of channels 13; 
omni-channel strategies 352–353; price 
comparisons 5
Morris, Philip 122
motivation: channel relationships 109, 
113–115; retail sales 171
Mtime 10
multi-channel strategies: comparison to 
omni-channel 12–16; relationships 
134–136
multi-level DSOs (MLDSOs) 194–195, 195
multi-unit franchising 283–285
music business 67
mutual commitment 116–117
negative sanctions 86–87
negotiation, channel functions 48
net dependence perspective 96–97
net operating profit 213
net sales 184–186
Niger 302–305
Nike 150–151
normative profit shares 56
norms: channel conflict resolution 164–165; 
legitimate power 90–91
Oakley 149–150
objectives see goals
offline stores see physical stores
off-retail 209–210
omni-channel, definition of 345
omni-channel ecosystem 16–17, 22–23
omni-channel strategies 1, 345–347; 
auditing 71–74, 72, 75, 355–356; 
business-to-business 19, 19–20; business-
to-consumer 21; challenges 21, 21, 
347–349; channel conflict 153–157, 
166–167; comparison to multi-channel 
12–16; four pillar approach 19, 349–359; 

Index
370
franchising 285–287, 357; international 
markets 312–314; market segmentation 
332, 336–337; power 101–102; 
relationships 134–136; retailers 176–177; 
showrooming 13, 177–178, 197, 351; 
strategy framework 16–24; wholesalers 
237–240
online: impact on marketing channels 5–6; 
omni-channel strategies 12–13
online reverse auctions 242–243
online shopping 11–12; auditing  
omni-channels 73–74; channel conflict 
155; channels ecosystem case studies 
22–23; consumer electronics 155–156; 
contemporary context 176–180; 
emerging market trends 313; franchising 
285–287; hybrid retail 196–199; influence 
on behaviors 14; retailers 192–193; 
wholesalers 237–240
online-only stores 347
open-to-buy 212–213
operating profit 213
opportunistic holdups 269
ordering, channel functions 49
organic groceries 204–205
organizational culture 125
original equipment manufacturers
(OEMs) 4
original retail 210
outsourcing 28
overcrowding 282
overseas see international markets
ownership: channel functions 47; 
franchising 278–280; wholesalers 219
payment: channel functions 49; emerging 
markets 312–313; franchising 268–270
perceived conflict 142
percentage of sales or profits 95
perceptions of reality 151
perceptions of unfairness 124, 126–128, 161
personnel exchanges 162–163
personnel shortages 262
pharmaceutical industry 219–220,
225–227
physical possession 46–47
physical stores: challenges 347–348; 
channel conflict 155; channel power 102; 
contemporary context 176–180; hybrid 
retail 196–199; rent 186–187
piggybacking 297
place: 4Ps of marketing 1–2; franchises 258, 
270–271; marketing channel as 3
planned gross margin 213
planned purchases 212
planned reductions 212
planned sales 211–212
pledges 119
plumbing and heating supplies industry 146
plural forms (franchises) 276–278
point-of-consumption merchandising 
formats 30–31
Pooniwala 90
Poshmark 179
positioning: brands 16; retailers 180–192; 

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