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E-raamat: Getting Multi-Channel Distribution Right

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  • Formaat: EPUB+DRM
  • Ilmumisaeg: 22-Apr-2020
  • Kirjastus: John Wiley & Sons Inc
  • Keel: eng
  • ISBN-13: 9781119632917
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Getting Multi-Channel Distribution RightSuurem pilt
  • Formaat: EPUB+DRM
  • Ilmumisaeg: 22-Apr-2020
  • Kirjastus: John Wiley & Sons Inc
  • Keel: eng
  • ISBN-13: 9781119632917
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Getting Multi-Channel Distribution Right provides a comprehensive treatment of modern distribution strategy that is analytically solid, clearly written, and relevant for managers as well as MBA and executive MBA students, and the professors who train them. It covers concepts, metrics, tools, and strategic frameworks for managing distribution in physical and digital channels.

Focusing on the challenges of managing multiple channels of distribution in an evolving marketplace—rather than the process of designing a distribution channel from scratch—it leans more heavily on metrics and tools and incorporates perspectives from academic research, as well as in-depth case studies from marketing and general management practice.

  • Introduces an organizing framework of pull and push marketing for how suppliers work together with their channel partners.
  • Integrates across physical and digital, independent and company-owned, routes to market.
  • Maps the functions of traditional and newer intermediaries in the channel ecosystem and identifies the root causes of conflict between them.
  • Provides tools and frameworks for how much distribution coverage is required and where.
  • Shows how product line, pricing, trade promotions, and other channel incentives can help to coordinate multiple channels and manage conflict.
  • Illustrates how push and pull metrics can be combined into valuable dashboards for identifying positive feedback opportunities and sustaining the channel partnership.

With the help of Getting Multi-Channel Distribution Right you’ll discover how to successfully develop, execute, and adapt distribution strategy to the evolving marketplace.

About the Authors xxi
Acknowledgments xxiii
Preface xxv
Chapter 1 Distribution Channels Today
1(12)
1.1 Introduction
1(3)
1.2 What Is New: Radical Changes in the Navigation of Distribution Channels
4(6)
1.2.1 Changing Business Models
5(1)
1.2.2 Omni-Channel Retailing
6(1)
1.2.3 Data
7(2)
1.2.4 Regulation
9(1)
1.3 The Road Ahead
10(3)
Part I The Bedrock of channel Functions, Power, and Conflict
13(108)
Chapter 2 Push, Pull, and Total Channel Performance
15(14)
2.1 Introduction
15(1)
2.2 An Organizing Framework Illustrated with Natura's Distribution Channel
16(4)
2.2.1 Push
16(1)
2.2.2 Pull
17(1)
2.2.3 Supplier Inputs, Downstream Effects, and Channel Performance
17(3)
2.3 Push-Pull Inputs and Downstream Effects in PepsiCo's Channel
20(1)
2.4 Push and Pull for Services and Digital Channels
21(2)
2.5 Beneficial and Harmful Feedback Loops in the Push-Pull System
23(3)
2.6 Conclusion
26(3)
Chapter 3 Root Causes of Channel conflict
29(28)
3.1 Introduction
29(4)
3.1.1 Examples of Channel Conflict
31(1)
3.1.2 Myopia and Four Root Causes of Conflict that Strain the Partnership
32(1)
3.2 Uncoordinated Pricing and Selling Effort
33(7)
3.2.1 Double, Triple, and Quadruple Marginalization
33(4)
3.2.2 Loss Leaders Have Their Own Problems
37(3)
3.3 Over- and Under-Distribution
40(6)
3.3.1 Under-Distribution
40(2)
3.3.2 Over-Distribution
42(2)
3.3.3 Competing with Your Customers
44(1)
3.3.4 Unauthorized Distribution
45(1)
3.4 Division of Work and Pay: Who Sold That?
46(5)
3.4.1 The Case of Leather Italia: Functions Performed and Margin Earned
46(3)
3.4.2 Free Riding on Showrooms, Webrooms, and Billboards
49(2)
3.5 Adapting to Change: Where Does the Future Lie?
51(1)
3.6 Conclusion
52(5)
Chapter 4 Middlemen in Today's Channel Ecosystem and Their Functions
57(22)
4.1 Introduction
57(3)
4.2 Brick-and-Mortar Intermediaries
60(4)
4.3 New Digital Intermediaries
64(3)
4.4 Support Service Providers
67(2)
4.5 What's Different about Today's Channel Functions
69(5)
4.5.1 The Critical Nature of Delivery and Returns
69(2)
4.5.2 Increasingly Targeted Selling and Peer Persuasion
71(1)
4.5.3 Location Means More, Not Less
72(2)
4.5.4 Agglomeration Is Alive and Well
74(1)
4.6 Conclusion
74(5)
Chapter 5 The sources and indicators of Power in the Channel
79(20)
5.1 Introduction
79(2)
5.2 Power in the Channel and Its Sources
81(4)
5.2.1 How Social Psychologists and Economists Think about Power
81(2)
5.2.2 Sources of Power in the Distribution Channel
83(2)
5.3 Consumer Search Loyalty: The Ultimate Source of Power
85(6)
5.3.1 Loyalty to the Brand or to the Channel?
86(1)
5.3.2 Search Loyalty: Hard to Get, Harder to Measure in the Physical World
87(2)
5.3.3 Fake It Till You Make It?
89(1)
5.3.4 Is Loyalty a Dinosaur in the Digital World?
89(2)
5.4 Economic Indicators of Power
91(5)
5.4.1 Monopoly Power: The Lerner Index and Price Elasticity
91(2)
5.4.2 Manufacturer versus Retailer Price Elasticity and How It Can Distort Power Assessment
93(1)
5.4.3 Profitability as a Sign of Power
94(2)
5.5 Conclusion
96(3)
Chapter 6 Using Power Without Using it up
99(22)
6.1 Introduction
99(1)
6.2 Applying Power in Channel Relationships
100(3)
6.3 Investments and Safeguards: Efficient Partnership or Power Struggle?
103(4)
6.3.1 Make Partner-Specific Investments with Open Eyes
103(1)
6.3.2 Safeguards Protect Each Party's Interests
104(1)
6.3.3 Safeguards Can Outlive Their Usefulness
105(1)
6.3.4 How Automobile Dealer Safeguards Came to Be
106(1)
6.4 The Challenge of Preserving Power
107(5)
6.4.1 Using Up Power: The "Objectification" of Leather Italia USA
108(2)
6.4.2 Pushing Power Too Far or Giving It Up: Retailers and Their Private Labels
110(2)
6.4.3 Should National Brand Manufacturers Produce Private Labels? Ill
6.5 Vertical Restraints: Welfare Enhancing or Anticompetitive?
112(4)
6.6 Conclusion
116(5)
Part II Metrics, Tools, and Frameworks for Getting the Right Distribution
121(118)
Chapter 7 Metrics for intensity and Depth of Distribution Coverage
123(24)
7.1 Introduction
123(1)
7.2 A Framework for Measuring Distribution and Matching It to Demand
124(3)
7.3 Measuring Stocking Outlet Findability: Metrics for Intensity of Distribution Coverage
127(11)
7.3.1 Importance of Outlets Can Be Measured by Their ACV, PCV, and GMV
128(3)
7.3.2 Traffic and Search Are Important, Perhaps Even More Than Sales Volume
131(2)
7.3.3 Online or Offline, Stocking Outlets Have to BeFindable
133(3)
7.3.4 The Double-Edged Sword of Increasing Importance of a Channel Member
136(1)
7.3.5 Integrate Metrics Across Offline and Online Channels
137(1)
7.4 Metrics for Distribution Depth
138(4)
7.4.1 Total Distribution Provides More Information Than Brand Distribution
139(1)
7.4.2 Aggregate Other Depth Metrics Only Across Stocking Outlets
140(1)
7.4.3 Getting the Data to Monitor These Metrics
141(1)
7.5 Conclusion
142(5)
Appendix: An Example to Calculate Basic Distribution Metrics
143(4)
Chapter 8 What Are You Managing Towards?
147(16)
8.1 Introduction
147(2)
8.2 A Hierarchy of Performance Metrics
149(11)
8.2.1 Compliance Metrics Can Catch Problems Early
150(2)
8.2.2 Cross- and Omni-Channel Metrics Are Increasing in Importance
152(2)
8.2.3 Both Parties Care about Sales, Share, and Sales Velocity but in Slightly Different Forms
154(2)
8.2.4 Gross and Net Margins, Category, and Customer Profitability
156(4)
8.3 Conclusion
160(3)
Chapter 9 The Challenge of optimizing Distribution Breadth
163(16)
9.1 Introduction
163(2)
9.2 Classic Categorizations of Products and Distribution Coverage
165(2)
9.3 Consumer Search Loyalty and Distribution Elasticity
167(5)
9.3.1 How Consumer Search Loyalty Reduces Distribution Elasticity
169(1)
9.3.2 Empirical Evidence of Distribution
170(2)
9.3.3 Feedback Effects and Longer-Term Distribution Elasticity
172(1)
9.4 The Difficulties of Optimizing Distribution Coverage
172(4)
9.4.1 The Complexity of Distribution Costs
173(2)
9.4.2 Discontinuities Arising from Retail Structure
175(1)
9.4.3 Distribution Is Not under the Complete Control of the Supplier
175(1)
9.5 Conclusion
176(3)
Chapter 10 Using Velocity Graphs to Guide sustainable Distribution Coverage
179(1)
10.1 Introduction
179(1)
10.2 The Concept of a Velocity Graph
180(1)
10.2.1 Sustainable Positions Likely Lie Close to the Velocity Graph
181(1)
10.2.2 Special Logistics Can Allow a Brand to Persist "Off the Graph
182(1)
10.2.3 Three Main Variants of Velocity Graphs
182(1)
10.3 Insights from Velocity Graphs: An Illustration with Laundry Detergents
183(5)
10.3.1 Brand Distribution Velocity Graphs
183(3)
10.3.2 Total Distribution Velocity Graphs
186(2)
10.4 Velocity Graphs, State Franchise Laws, and Overdistribution of U.S. Auto Makers
188(5)
Chapter 11 Augmenting the Distribution Mix: Digital Channels and Own Bricks and Clicks
193(22)
11.1 Introduction
193(1)
11.2 A Variety of Own-Stores to Augment Distribution by Independent Resellers
194(7)
11.2.1 Store-Within-a-Store to Improve Distribution Depth
194(2)
11.2.2 Flagship Stores and Outlets Stores Are at Two Extremes of the Branding Spectrum
196(2)
11.2.3 Look Before You Leap with Regular Physical and Web Stores
198(2)
11.2.4 Showrooms Are a Little Like Flagship Stores
200(1)
11.3 The Inevitability and Challenge of Online Distribution
201(4)
11.3.1 Whether to Be Online Is No Longer Debatable
201(1)
11.3.2 Coverage Versus Control Is a Steeper Trade-off Online
202(3)
11.3.3 How Viable Is the Online Channel's Revenue and Profit Model?
205(1)
11.4 Be Clear about "Why" to Decide "How" to Distribute Online
205(10)
11.4.1 Which Segments Are You Trying to Reach and Why Do They Go Online?
206(2)
11.4.2 Own Website Is Usually Not Enough and Omni-Channel Retailers Will Expect to Sell Online
208(1)
11.4.3 Think Hard About the Functions That Pure Play Web Intermediaries Perform
209(1)
11.4.4 Whether and How to Do Business with Tech Behemoths Is a Strategic Question All Its Own
209(6)
Chapter 12 Three Cases on online Distribution
215(24)
12.1 Introduction
215(1)
12.2 The Saga of Brooks Running and Amazon.com
215(5)
12.2.1 What Do Segments of Runners Search for Online and Where?
216(2)
12.2.2 Coverage without Sacrificing Control
218(2)
12.3 Aggregation: Work Worth the Pay in the Online Travel Channel?
220(9)
12.3.1 Why Online Travel Intermediaries Thrive
221(2)
12.3.2 Power from Consolidation and Pull Marketing
223(1)
12.3.3 Limits to Power from Regulation and Competition
224(4)
12.3.4 What Is Sustainable?
228(1)
12.4 Building a Viable Revenue Model Online: News, Music, and TV
229(6)
12.4.1 Online Erosion of a Two-Sided Platform's Business Model
230(1)
12.4.2 Music and Pay-TV Tread More Carefully
231(4)
12.5 Conclusion
235(4)
Part III Aligning the Marketing Mix to Manage Distribution
239(98)
Chapter 13 Using the Product Line to Manage Multiple Channels
241(26)
13.1 Introduction
241(2)
13.2 Channel-Motivated Expansion of SKUs, Brands, and Categories
243(2)
13.3 Portfolios of SKUs for a Portfolio of Channels
245(7)
13.3.1 Product Line Length Is Tied to Marketing and Distribution Structure
245(1)
13.3.2 Product Line Guidance from Total Distribution and SKU Distribution Velocity Graphs
246(2)
13.3.3 Use the Opportunity to Be a "Category Captain" Judiciously
248(2)
13.3.4 Be Clear About Why and How SKUs Are Aligned with Channels
250(2)
13.4 Portfolios of Brands to Protect Equity and Mitigate Channel Conflict
252(3)
13.4.1 Get Clarity on Your Brand Portfolio Strategy and Brand Architecture
252(2)
13.4.2 Real Differentiation Is Harder than It Looks
254(1)
13.5 Expanding to Support an Exclusive or Direct Channel
255(4)
13.5.1 Enticing Consumers to the Direct Channel Requires Greater Scale and Scope
255(2)
13.5.2 Sometimes It Makes Sense to Sacrifice Profits to Support the Channel
257(1)
13.5.3 But Make Sure the Long Tail Is Not Wagging the Strategy Dog
258(1)
13.6 Cautions at All Three Levels of Product Line Expansion
259(2)
13.6.1 Preempt, Monitor, and Control Unauthorized Distribution
259(1)
13.6.2 Curation Is More Important than Ever
260(1)
13.7 Conclusion
261(6)
Chapter 14 Harnessing the Power of Price and Price Promotions
267(20)
14.1 Introduction
267(1)
14.2 Why One "Everyday" Price to Resellers Is Usually Not a Smart Idea
268(4)
14.2.1 Variable Supplier Prices Can Alleviate Double Marginalization
268(3)
14.2.2 Trade Promotions Fund Retail Promotions to Consumers
271(1)
14.3 The Many Varieties of Trade Promotions
272(4)
14.3.1 Trade Promotion Goals Evolve Over the Product Life Cycle
274(1)
14.3.2 Pay-for-Performance Trade Promotions Tie Funding to Reseller Actions
275(1)
14.4 The Challenge of Assessing the Costs and Profitability of Trade Promotions
276(11)
14.4.1 What Is the Cost of a Trade Promotion?
277(1)
14.4.2 How Much of the Sales (and Profit) Bump Is Incremental for Whom?
278(3)
14.4.3 Additional Metrics for Key Value Items and Loss-Leaders
281(1)
14.4.4 Baseline Sales Evolve Over Time
282(2)
Appendix: Trade Promotion, Retail Price Discrimination, and Promotion "Cost": A Numerical Example
284(3)
Chapter 15 Managing Prices and incentives Across Channels
287(26)
15.1 Introduction
287(1)
15.2 The Goals and Challenges of Channel Incentives
288(5)
15.2.1 Sales and Channel Management Goals
288(1)
15.2.2 Challenges in Implementing Incentives
288(3)
15.2.3 Conditioning Incentives on Reseller Efforts or Performance
291(2)
15.3 How to Maintain Reseller Prices
293(3)
15.3.1 Incentives to Keep Reseller Prices from Being Too Low
293(1)
15.3.2 Control Inventory to Control Price
294(2)
15.4 Decide Whether to Differentiate or Harmonize Across Multiple Channels
296(7)
15.4.1 Different Products, Retail Prices, and Retail Services Across Channels
296(1)
15.4.2 Harmonized Retail Prices Across Channels Can Reduce Showrooming
297(1)
15.4.3 Minimum Advertised Price (MAP) Policies Can Help
298(1)
15.4.4 Differential Incentives for Valuable Channels that Serve as Showrooms
299(2)
15.4.5 Use Targeting to Reduce Channel Conflict
301(2)
15.5 Challenges Even When You Control Retail Price Directly
303(4)
15.5.1 Don't Erode Your Own Price to Get the Buy Box
304(1)
15.5.2 Paywalls: When Information Wants to Be Free but Two-Sided Markets Fall Apart
305(2)
15.6 Conclusion
307(6)
Appendix: Excerpts from Mizuno's MAP Policy
309(4)
Chapter 16 Summary: Dashboards and Principles for Managing New Directions in Distribution
313(24)
16.1 Pulling (and Pushing) It all Together
313(8)
16.1.1 An Expanded View of the Push-Pull System
314(2)
16.1.2 A Note About Pull
316(2)
16.1.3 What Does It Mean to C oordinate Pull and Push?
318(2)
16.1.4 Measure, Match, and Manage to Nurture Beneficial Feedback Loops
320(1)
16.2 Distribution Dashboards
321(9)
16.2.1 A Simple Illustration of the Insight from Push-Pull Dashboards
322(1)
16.2.2 A Distribution Dashboard for Pete and Gerry's Organic Eggs
323(3)
16.2.3 A More Complicated Distribution Dashboard for Hotel Companies
326(4)
16.3 The Magical Number Seven Plus or Minus Two Nuggets of Wisdom
330(4)
16.3.1 Consumer Search Loyalty Bestows Power and Can Create Conflict
330(1)
16.3.2 Prevent Power Outages: Power Is Precious and It's Easy to Use It Up
331(1)
16.3.3 Be the Expert on Where and Why Your Target Consumer Visits, (Re)Searches, and Buys
331(1)
16.3.4 Form Should Follow Function with Channel Pay and Incentives
332(1)
16.3.5 The Direct Approach Can Work, but You Really Have to Know What You're Doing
332(1)
16.3.6 The Devil Is in the Details, and So Is the Profit
333(1)
16.3.7 Avoid Future Shock by Planning and Managing the Rate of Change
333(1)
16.4 Conclusion: Who Will Be the Masters of Multi-Channel Distribution?
334(3)
Author index 337(6)
Subject Index 343
KUSUM L. AILAWADI is Charles Jordan Professor of Marketing at the Tuck School of Business at Dartmouth. Her research focuses on the interaction, distribution of power, and performance of manufacturers and their distribution channel partners. She has published extensively in the top marketing journals, and several of her articles have been honored for best contributions to marketing theory, practice, and academic-practitioner collaboration, and for long-term impact. She is an Associate Editor for the Journal of Marketing, Journal of Marketing Research, and Marketing Science. She is also an Academic Trustee of the Marketing Science Institute and President-Elect of the INFORMS Society for Marketing Science.

PAUL W. FARRIS is Emeritus Landmark Professor of Marketing at the Darden School of Business, University of Virginia. Over his career he has worked in marketing for UNILEVER and was a director on boards for six companies including retailers, manufacturers, and distributors. He has consulted for Apple, Best Buy, Google, Kroger, and Procter & Gamble among other companies. His authored or co-authored books and articles include award-winning research on distribution channels, marketing metrics, retail power, marketing strategy, and budgeting. He has served on several editorial boards for marketing journals and as an Academic Trustee of the Marketing Science Institute.
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