Take-Aways   314 CONtENts xvii

CONtENts
xvii
CHAPTER 10 
End-User Analysis: Segmentation and Targeting
 
319
Learning Objectives 319
Introduction: Understanding the Importance of Channel 
Segmentation 319
End-User Segmentation Criteria: Service Outputs 323
Bulk-Breaking 323
Spatial Convenience 325
Waiting or Delivery Time 325
Product Variety and Assortment 326
Customer Service 327
Information Sharing 328
Segmenting End-Users by Service Output 330
Targeting End-User Segments 334
Omni-Channels and End-User Segments 336
Take-Aways
 
337
CHAPTER 11 
Omni-Channel Strategy
 
345
Learning Objectives 345
Introduction 345
Key Challenges of the Omni-Channel Approach 347
The Four Pillars of an Omni-Channel Strategy 349
Harnessing Customer Knowledge 350
Leveraging Technology 352
Managing Channel Relationships 355
Assessing Channel Performance 358
Take-Aways
 
359
Index 363

Figures, Tables, Sidebars,
and Appendices
F I G U R E S
1.1 Typical Channel System 
4
1.2 Frequency of Occurrence of Omni-Channel Retail in a Search
Engine: 2008–2017 
12
1.3 B2B Omni-Channel Ecosystem 
19
1.4 The Omni-Channel Challenge 
21
2.1 Contact Costs to Reach the Market With and Without Intermediaries 
41
2.2 The Efficiency Template 
54
2.3 Types of Gaps 
66
2.4 Service Gap Analysis Template: CDW Example 
68
2.5 Cost Gap Analysis Template: CDW Example 
69
2.6 Steps Involved in an Omni-Channel Audit 
72
2.7 Tracking Cross-Channel Competencies 
75
3.1 Three Approaches to Managing Marketing Channels 
82
3.2 The Five Sources of Power 
85
3.3 Power-Based Influence Strategies 
100
4.1 Motives to Create and Maintain Strong Channel Relationships 
114
4.2 Symptoms of Commitment in Marketing Channels 
117
4.3 Relationship Phases in Marketing Channels 
129
4.4 Role of Relationship Velocity Versus Level of Commitment 
132
4.5 Relationships in Omni-Channels Versus Multi-Channels 
135
5.1 Measuring Conflict 
143
5.2 The Four Ways to Resolve Conflicts 
162
5.3 The Relational Landscape in Omni-Channel Versus Multi-Channel Settings 
166
6.1 U.S. Total and E-Commerce Sales ($Million) 
193
6.2 Sample Multi-Level Direct Selling Organization: Structure and Compensation 
195
6.3 Omni-Channel Interfaces and Touchpoints 
198
6.4 Trade Deals for Consumer Nondurable Goods 
202
7.1 Representative Master Distributor Channel 
222

FigurEs, tAblEs, sidEbArs, ANd AppENdiCEs 
xx
7.2 Degrees of Channel Usage 
238
7.3 Drivers of Blockchain Adoption 
240
8.1 Contents of Most Franchise Disclosure Documents 
253
8.2 Financial Performance Representation and Projection 
264
8.3 Franchises with High and Low Success Rates 
279
9.1 Questions to Consider Prior to Franchising Internationally 
300
9.2 Distribution Requirements by Product Types 
309
9.3 Distribution Options: Company, NGOs, Cooperatives, and Rural Retail 
310
10.1 Drivers of Service Outputs in Marketing Channels 
324
10.2 Identifying Service Output Segments 
334
11.1 Pillars of an Omni-Channel Strategy 
350
11.2 Measuring Omni-Channel Performance 
358
T A B L E S
2.1 CDW’s Participation in Various Channel Functions 
51
2.2 Metrics for Measuring Omni-Channel Distribution Breadth and Depth 
73
6.1 A Taxonomy of Retailer Types 
176
6.2 Net Sales and SG&A Expenses of Retailers 
191
8.1 Sectors With Substantial Franchise Presence 
263
8.2 When Do Franchisors Enforce the Franchise Contract? 
273
8.3 The Franchise Contract 
274
10.1 Business-to-Business Channel Segments for a New High-Technology Product 
333
10.2 Service Output Segmentation Template 
342
S I D E B A R S
1.1 Tea Selling in Taiwan: The Key Roles of Tea Intermediaries 
6
1.2 E-Commerce in India: Channels Operate in an Ecosystem 
22
2.1 CDW and PC Purchases by Small- and Medium-Sized Business Buyers:
Channel Functions and Equity Principle Insights 
50
3.1 Gore-Tex Changes Its Power Base 
92
4.1 John Deere Helps Dealers Reach Out to Women 
109
4.2 Philip Morris Substitutes Channels for Advertising 
122
5.1 Functional Conflict in Plumbing and Heating Supplies 
146
5.2 Oakley Battles Its Biggest Customer 
149
6.1 Zara: A European Retailer Using the Low-Margin, High-Turnover
Model of Retailing 
181
6.2 H&M: Another Low-Margin, High-Turnover European Retailer, with
a Different Channel Strategy 
183
6.3 Kroger’s Simple Truth: Bringing Organic Products to the Masses 
204
7.1 Wholesalers in the U.S. Pharmaceutical Industry 
219
7.2 Ace Hardware Corporation 
230

FigurEs, tAblEs, sidEbArs, ANd AppENdiCEs 
xxi
7.3 Direct Selling in France 
233
 8.1 McDonald’s 
254
8.2 ADA Discovers the Benefits of Franchisees 
266
8.3 Dhanani Group: Masters of Multi-Unit Franchising 
285
9.1 Tata–Starbucks in India 
301
9.2 The Chotukool by Godrej (India) 
307
10.1 CDW and Purchases by Small- to Medium-Sized Business Buyers 
320
10.2 1-800-Flowers, an Omni-Channel Pioneer 
332
11.1 L’Oreal’s Make-Up Genius 
354
11.2 Omni-Channels and Car Buying 
356
A P P E N D I C E S
1.1 Alternative Channel Formats: Definitions and Examples 
24
6.1 A Glossary of Pricing and Buying Terms Commonly Used by Retailers 
208
6.2 Merchandise Planning and Control 
211
10.1 Service Output Segmentation Template: Tools for Analysis 
338

Preface
N E W T O T H I S E D I T I O N
The primary goal for this Ninth Edition, as reflected in the change in the title—from 

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