Marketing Channel Strategy

see also market segmentation
postponement, cost gaps 66–67
post-sales service 326
power see channel power
power retailers 244
price: 4Ps of marketing 1–2; for distributors 
223; dynamic pricing 354–355; gray 
markets 158–159; market segments 329; 
omni-channel strategies 16; retail prices 
212–213; retail trends 199–201; service 
outputs 330, 335–336
price comparisons 5
primary demand 154–155
private-label products 8, 203–205
procedural fairness 124, 127–128
process perspective 331
Procter & Gamble (P&G): channel 
relationships 112, 113; personnel 
exchanges 162–163
producers see manufacturers
product: 4Ps of marketing 1–2; manufacturers’ 
role 8–9; service outputs 320–321; variety 
and assortment 326–327, 340
product franchising 251–252
product reviews: contemporary trends 15; 
retailers' role 193–194; social media 4
product variety (retail strategies) 189–190

Index
371
productive activity 45
profit: channel power 95; operating profit 
213; strategic profit model 184–186; 
wholesalers 243–244
promotion: 4Ps of marketing 1–2; channel 
functions 48; contemporary trends 16; 
discount types 210, 212; mobiles 352–353; 
retail trends 200–201; targeted 16
pseudoshowrooming 5
purchase, omni-channel strategies 14,  
192, 197
purchasing power parity (PPP) 294–295
pyramid schemes 195–196
quantity discounts 210
reciprocation, channel relationships 116–117
referent power 90, 91
regulatory context: gray markets 159; 
intermediaries 16
relational norms 164–165
relationship portfolios 133–134
relationship quality 134
relationship velocity 131–132, 132
relationships see channel relationships
relationship-specific investments 119
rent costs 186–187
reputation, channel relationships 116
research: omni-channel strategies 14;
social shopping 179; see also information 
sharing
residual claimants 263
retail, nature of 171–172
retail positioning 180–192; see also market 
segmentation
retail prices 212–213
retail sales 171
retailers: channel formats 25–27, 192–199; 
classification 172–175; contemporary 
context 15, 175–180; demand-side 
positioning strategies 187–192; emerging 
market trends 312–313; international 
markets 297–299; market segmentation 
322, 323–329; marketing channel actors 
6, 9–10; marketing channels 3–4, 4, 
18; omni-channel benefits 101–102; 
omni-channel challenges 347–349; omni-
channel strategies 192, 197, 349–359; 
positioning strategies 180–192; power 
and its effects 199–205; see also online 
shopping
retailer-sponsored cooperatives 230–231
retaliation 87
returns, managerial bounds 61
reverse auctions 242–243
reviews see product reviews
reward power 85–86
RFID (radio frequency identification) 
technology 58
right of first refusal (franchises) 272
risk: channel conflict resolution 166; 
channel functions 49; franchising 261, 
280; wholesalers 227
road railers 27
role performance, channel power 95–96
roller freight 27
routinization of transactions 39
royalty on sales 268–270
sacrifice, channel relationships 108
safety stock 48
sale retail 210
sales: channel power 95; marketing 
channels 3–4; retail 171, 199–200; 
strategic profit model 184–186
sales, general, and administrative (SG&A) 
expenses 190–192, 
191
sales forecasting 211–212
Samsung 155–156
scarcity, and dependence 93, 94–95, 96
scheduled trains 27
search facilitation 37–38
Sears 108
seasonal discounts 210
segment differentiation 134–135; see also 
market segmentation
selectivity, channel relationships 118
self-enforcing agreements 274
service gaps 62–63, 67–70, 
68, 73
service output template 338–341, 342
service outputs 37–40, 320–321,
323–334

Index
372
services: channel formats 27–28; 
contemporary trends 15–16; 
manufacturers in 8
shelf space 348
showrooming: as contemporary trend 5, 
14–15; conversion rates 358;  
omni-channel strategies 13, 177–178, 
197, 351; a prototypical shopper 346; 
retail strategies 192, 197
Simple Truth 204–205
single shared interests 81, 107
single-unit franchising 283
site selection, franchises 258
slotting allowances 203
smartphones see mobiles
social capital 124
social media: 1-800-Flowers 322; assessing 
channel performance 358; engagement 14; 
harnessing customer knowledge 350–351; 
product reviews 4, 15; retailer strategies 
179, 353; targeted promotions 16
social shopping 179
Sojitz 296, 297
solidarity, channel conflict resolution 164
solutions retailing 329
sorting goods 38–39
spatial convenience 188, 325, 326, 339
specialization, channel functions 42–43
specialized intermediaries 6, 10
specialty discount stores 26, 174
specialty distributors 220
specialty stores 26, 174, 188, 326–327
specifiers 28
speculation, service gaps 67
stack trains 27
Starbucks: Chinese market 347; franchising 
2–3, 266–267; international markets 301
stock-keeping units (SKUs) 172–173
stocks replenishment 180–186, 188–189, 
201, 211–212
stockturn 211
store brands see private-label products
store concepts 190
store-within-a-store 174
strategic profit model (SPM) 184–186
subprocessors 27
subscription services 355
suitability of channels 19–20
supercenters 172
supermarkets 172, 203–205, 322
suppliers: channel conflict 153–154; 
channel relationships 117–119; gray 
markets 159–160; omni-channel benefits 
101–102; retail trends 200; see also 
upstream channel members
supply and demand 48
supply chain management 220–221, 223–224
switching costs 95
synergies (franchises) 276
Taiwan 6–7
targeted promotions 16; see also market 
segmentation
Tata Group 301
technology: omni-channel strategies 
352–355; retailers 178–180; waiting times 
325; wholesalers 226–227
technology-aided formats 32–33
temporary franchises 275–276
Tencent 83
termination threats 271–272
Tesla Motors 15–16
third-party influencer formats 31–32
third-party logistics providers (3PL) 224
third-party mechanisms, channel
conflict 163
tied sales 270
time and place utility 227
time preferences 188–189
T-Mobile 346
total cost 210
trade areas 348
trade associations 162
trade deals 200, 
202
trade discount 210
trade name franchising 251–252
transactions, routinization of 39
transfer fees (franchising) 271–272
transformation of goods 227–228
transport services 27

Index
373
transportation: channel functions 47; 
spatial convenience 188, 325, 326, 339; 
waiting or delivery times 188–189, 
325–326, 339–340
trust: building 121–128; channel conflict 148; 
franchising 281–282; retailers 177–178
United States: direct selling channels 194; 
franchising 254, 267; international 
markets 294; pharmaceutical industry 
219–220, 225–227; retail market 172, 
175–176, 193; used cars example 22–23
upstream channel members: channel 
conflict 141; channel relationships 
108–112, 
114, 117–120; fewer contacts 
39–40; gray markets 160; routinization of 
transactions 39; see also manufacturers
utility: dependence 93, 94–95, 96; 
downstream channel member benefits 
39; wholesalers 227
utilization assessment 358
Value-Added Resellers (VARs) 28
value-added services 18–19, 227–228, 241
values, legitimate power 90–91
Van Heusen 136
variety of products (retail strategies) 189–190
vendor-managed inventories 112
vice goods 324–325
village-level entrepreneurs 308–312
virtuous cycle 298–299
voluntary arbitration 163–164
Volvo GM 229–230
Vroom 22–23
waiting times 188–189, 325–326, 339–340
Walgreen 188
Walmart: buy direct approach 244; channel 
relationships 112, 113; efficiency 
template 58; emerging market trends 
313; market position 175–176; omni-
channel strategy 348–349; personnel 
exchanges 162–163
warehouse clubs 25, 173
webrooming 13, 15
Wesco 228
wholesale clubs 25
wholesalers 217–218; adapting to trends 
237–244; channel relationships 111–112; 
distinction from distributors 218–220; 
historical context 225–227; importance 
of 220–224; international markets 
302–305; manufacturer-owned full-service 
wholesaler distributor 24–25; marketing 
channel actors 6, 9; marketing channels 
3–4, 4, 18; strategies 224–237; vertical 
integration with manufacturers 244
Wyndham Worldwide 90
Zannier 278–280
Zara 181–183
zero-based channel concept 59