GLOBAL EDITION. Marketing Channel Strategy EIGHTH EDITION. Robert W. Palmatier Louis W. Stern Adel I. El-Ansary
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1 GLOBAL EDITION Marketing Channel Strategy EIGHTH EDITION Robert W. Palmatier Louis W. Stern Adel I. El-Ansary
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3 Marketing Channel Strategy, Global Edition Table of Contents Cover Dedication Brief Contents Contents Preface Acknowledgments About the Authors Part I : Introduction Chapter 1 : Understanding Channel Strategies The Importance of Marketing Channel Strategies What is a Marketing Channel Strategy? Who Participates in Marketing Channels? Manufacturers: Upstream Channel Members Intermediaries: Middle Channel Members End-Users: Downstream Channel Members Combinations of Channel Members Why Do Marketing Channels Exist? Benefits for Downstream Channel Members Benefits to Upstream Channel Members Sidebar 1-1 Tea selling in Taiwan: The key roles of tea intermediaries What are the Key Functions Marketing Channels Perform? Channel Strategy Framework End-User Analysis: Segmentation and Targeting Channel Analysis: Auditing Marketing Channels Make-or-Buy Channel Analysis Designing Channel Structures and Strategies Benchmarking Traditional and Emerging Channel Systems Implementing Channel Strategies Appendix 1-1 Part II : Designing Channel Strategies Chapter 2 : End-User Analysis: Segmenting and Targeting Understanding the Importance of Segmentation Sidebar 2-1 CDW and PC purchases by small to medium-sized business buyers End-User Segmentation Criteria: Service Outputs Bulk Breaking Spatial Convenience Waiting Time Product Variety and Assortment
4 Customer Service Information Sharing Segmenting End-Users by Service Outputs Targeting End-User Segments Appendix 2-1 Chapter 3 : Channel Analysis: Auditing Marketing Channels Channel Audit Criteria: Channel Functions Sidebar 3-1 CDW and PC purchases by small and medium-sized business buyers: Channel functions and equity principle insights Sidebar 3-2 Reverse logistics: Channel functions for returned merchandise Auditing Channels Using the Efficiency Template Evaluating Channels: The Equity Principle Evaluating Channels: Zero-Based Channel Concept Auditing Channels Using Gap Analysis Sources of Channel Gaps Service Gaps Cost Gaps Combining Channel Gaps Evaluating Channels: Gap Analysis Template Appendix 3-1 Chapter 4 : Make-or-Buy Channel Analysis Trade-Offs of Vertical Integration Degrees of Vertical Integration Costs and Benefits of Make-or-Buy Channels Payment Options for Buying Marketing Channels Sidebar 4-1 Vertical integration forward: Harder than it looks Make-or-Buy Channel Options: The Buying Perspective Return on Investment: The Primary Criterion Buying or Outsourcing Channels as the Base Case Six Reasons to Outsource Distribution Make-or-Buy Channel Options: The Making Perspective The Role of Company-Specific Capabilities Six Company-Specific Distribution Capabilities Sidebar 4-2 Battle of the Greek yoghurts Vertically Integrating to Deal with Thin Markets Vertically Integrating to Cope with Environmental Uncertainty Vertically Integrating to Reduce Performance Ambiguity Vertically Integrating to Learn from Customers Channel Members Integrating Upstream Sidebar 4-3 A retailer loses focus by integrating backward Summary: Make-or-Buy Decision Framework
5 Chapter 5 : Designing Channel Structures and Strategies Channel Intensity Decisions Downstream Channel Members Perspective on Intensive Distribution Sidebar 5-1 Big Boys Toys Upstream Channel Members Perspective on Intensive Distribution Channel Competition to Prevent Complacency (Factor 1) Product Category (Factor 2) Brand Strategy: Premium and Niche Positioning (Factor 3) Sidebar 5-2 A unique art of expansion Channel Influence (Factor 4) Dependence Balancing (Factor 5) Opportunity Cost (Factor 6) Transaction Costs (Factor 7) Other Manufacturers Strategies (Factor 8) Channel Type Decisions Sidebar 5-3 Tupperwares retail channels cannibalize the party Dual Distribution Decisions The Demonstration Argument CarrierRider Relationships Closing Channel Gaps Closing Service Gaps Closing Cost Gaps Closing Gaps Produced by Environmental or Managerial Bounds Summary: Designing Effective Channel Structures and Strategies Part III : Channel Structures and Strategies Chapter 6 : Retailing Structures and Strategies Retail Structures Retail Positioning Strategies Cost-Side Positioning Strategies Sidebar 6-1 Zara: A European retailer using the low-margin, high-turnover model of retailing Sidebar 6-2 H&M: Another low-margin, high-turnover European retailer, with a different channel strategy Demand-Side Positioning Strategies Taxonomy of Retail Positioning Strategies Multichannel Retail Strategies Internet Retail Channel Direct Selling Channel Hybrid Retail Channels Adapting to the Increasing Power of Major Retailers Effects of Forward Buying
6 Effects of Slotting Allowances Effects of Failure Fees Effects of Private Branding Effects of Globalization of Retailing Summary: Retailing Structures and Strategies Appendix 6-1 Appendix 6-2 Chapter 7 : Wholesaling Structures and Strategies Wholesaling Structures and Strategies Wholesaler-Distributors Master Distributors Other Supply Chain Participants Wholesaling Strategies An Historical Perspective on Wholesaling Strategy Wholesaling Value-Added Strategies Wholesaling Strategies in Foreign Markets Sidebar 7-1 Export trading companies Wholesaling Strategies in Emerging Economies Alliance-Based Wholesaling Strategies Sidebar 7-2 Co-operative Group Sidebar 7-3 Egypts first female cooperatives Consolidation Strategies in Wholesaling Adapting to Trends in Wholesaling International Expansion Electronic Commerce B2B Online Exchanges Online Reverse Auctions Fee for Services Vertical Integration of Manufactures into Wholesaling Summary: Wholesaling Structures and Strategies Chapter 8 : Franchising Structures and Strategies Franchising Structures Benefits to Franchisees Sidebar 8-1 McDonalds Benefits to Franchisor Another View: Reasons Not to Franchise Franchising Strategies Product and Trade Name Franchising Strategies Sidebar 8-2 ADA discovers the benefits of franchisees Business Format Franchising Strategy Franchise Contracting Strategies Company Store Strategies
7 Adapting to Trends in Franchising Survival Trends Multiunit Franchising Summary: Franchising Structures and Strategies Chapter 9 : Emerging Channel Structures and Strategies Trends Influencing Marketing Channels Channel Strategies for Services Drivers of the Shift to Services Effect of Key Service Characteristics on Channel Strategies Effects of Product Aspects on Channel Strategies Effects of Acquiring Service Capabilities, Infrastructure, and Knowledge Sidebar 9-1 Fujitsu and Federal Express build a close relationship Channel Members Responses to Service Transition Strategies Channel Strategies for Globalization Drivers of Globalization Effects of Globalization on Channel Strategies Channel Strategies for E-Commerce Drivers of Increased E-Commerce Sidebar 9-2 Souq.com, the Arabian e-commerce dream Effects of E-Commerce on Channel Strategies Sidebar 9-3 Channel conflict and Internet Commerce Hierarchical Multichannel Strategies Summary: Emerging Channel Structures and Strategies Part IV : Implementing Channel Strategies Chapter 10 : Managing Channel Power The Nature of Power Power Defined Power as a Tool The Need to Manage Channel Power The Five Sources of Channel Power Reward Power Coercive Power Expert Power Sidebar 10-1 Retailers build expertise power over suppliers Sidebar 10-2 The mystery shopper Legitimate Power Referent Power Sidebar 10-3 Patent wars Grouping the Five Power Sources Summary of Power Sources Dependence as the Mirror Image of Power
8 Defining Dependence Sidebar 10-4 New market channels for Malaysian retailers Measuring Dependence Balancing Power: A Net Dependence Perspective Imbalanced Dependence Power-Based Influence Strategies Effectiveness of Six Influence Strategies Framing Influence Strategies Summary: Managing Channel Power Chapter 11 : Managing Channel Conflict The Nature of Channel Conflict Types of Conflict Measuring Conflict Consequences of Conflict Functional Conflict: Improving Channel Performance Sidebar 11-1 Functional conflict in plumbing and heating supplies Manifest Conflict: Reducing Channel Performance Major Sources of Conflict in Channels Competing Goals Differing Perceptions of Reality Intrachannel Competition Multiple Channels Unwanted Channels: Gray Markets Minimizing the (Negative) Effects of Channel Conflict Reducing the Use of Threats Intolerance of Conflict in Balanced Relationships Sidebar 11-2 Apple, Hong Kong, and parallel imports Mitigating the Effects of Conflict in Balanced Relationships Perceived Unfairness: Aggravating the Effects of Conflicts Conflict Resolution Strategies Forestalling Conflict Through Institutionalization Ongoing Conflict Resolution Styles Using Incentives to Resolve Conflict Summary: Managing Channel Conflict Chapter 12 : Managing Channel Relationships The Nature of Channel Relationships Upstream Motives for Building a Strong Channel Relationship Sidebar 12-1 South Africas MWEB goes Spanish Downstream Motives for Building a Strong Channel Relationship Effectiveness of Strong Channel Relationships Building Channel Commitment
9 Need for Expectations of Continuity Need for Reciprocation: Mutual Commitment Strategies for Building Commitment Building Channel Trust Need for Economic Satisfaction Sidebar 12-2 Philip Morris substitutes channels for advertising Strategies for Building Channel Partners Trust The Channel Relationship Life cycle The Five Stages of a Channel Relationships Managing the Stages Managing Troubled Relationships Relationship Portfolios Summary: Managing Channel Relationships Chapter 13 : Managing Channel Policies and Legalities Market Coverage Policies Sidebar 13-1 Continental TV v. GTE Sylvania Customer Coverage Policies Pricing Policies Price Maintenance Sidebar 13-2 Monsanto v. Spray-Rite Sidebar 13-3 Business Electronics Corp. v. Sharp Electronics Sidebar 13-4 Albrecht v. Herald and State Oil Co. v. Khan Price Discrimination Sidebar 13-5 Liggett & Myers v. Brown & Williamson Sidebar 13-6 Texaco v. Hasbrouck Product Line Policies Exclusive Dealing Sidebar 13-7 Tampa Electric Co. v. Nashville Coal Co Tying Sidebar 13-8 Jefferson Parish Hospital District No. 2 v. Hyde Sidebar 13-9 Eastman Kodak Co. v. Image Technical Service, Inc. Full-Line Forcing Designated Product Policies Sidebar U.S. Federal Trade Commission v. Toys R US Selection and Termination Policies Ownership Policies Vertical Integration by Merger Vertical Integration by Internal Expansion Dual Distribution Summary: Managing Channel Policies and Legalities Chapter 14 : Managing Channel Logistics
10 Impact of Channel Logistics and Supply Chain Management Sidebar 14-1 Reverse logistics Efficient Channel Logistics Efficient Consumer Response Barriers to Efficient Consumer Response Quick Response Logistics Barriers to Quick Response Sidebar 14-2 Zara, the quick response master Supply Chain Strategies Physical Efficiency Versus Market Responsiveness Effective Supply Chain Management Sidebar 14-3 How to build triple-a supply chains Summary: Managing Channel Logistics Name Index Subject Index Company Index
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