9th Edition

Marketing Channel Strategy An Omni-Channel Approach

    402 Pages
    by Routledge

    402 Pages
    by Routledge

    402 Pages
    by Routledge

    Marketing Channel Strategy: An Omni-Channel Approach is the first book on the market to offer a completely unique, updated approach to channel marketing. Palmatier and Sivadas have adapted this classic text for the modern marketing reality by building a model that shows students how to engage customers across multiple marketing channels simultaneously and seamlessly.

    The omni-channel is different from the multi-channel. It recognizes not only that customers access goods and services in multiple ways, but also that they are likely doing this at the same time; comparing prices on multiple websites, and seamlessly switching between mobile and desktop devices. With the strong theoretical foundation that users have come to expect, the book also offers lots of practical exercises and applications to help students understand how to design and implement omni-channel strategies in reality.

    Advanced undergraduate and graduate students in marketing channels, distribution channels, B2B marketing, and retailing classes will enjoy acquiring the most cutting-edge marketing skills from this book.

    A full set of PowerPoint slides accompany this new edition, to support instructors.

    List of Tables, Figures, and Appendices


    CHAPTER 1: The Omni-Channel Ecosystem

    Learning Objectives


    What Is a Marketing Channel?

    The Changing Channel Landscape

    Marketing Channel Actors

    Manufacturers: Upstream Channel Members

    Intermediaries: Middle Channel Members


    Retail Intermediaries

    Specialized Intermediaries

    End-Users: Downstream Channel Members

    Combinations of Channel Members

    Online Channels

    From a Multi-Channel to an Omni-Channel World

    Distinction Between Multi-Channel and Omni-Channel Marketing Strategies: Trends Driving the Shift

    Trend 1: Channel Participants Operate in a Connected World

    Trend 2: Cross-Channel Shopping

    Trend 3: Altered Shopping Norms

    Trend 4: Moving into Services

    Trend 5: Targeted Promotions and Customer Insights

    Channel Strategy Framework



    CHAPTER 2: Channel Basics

    Learning Objectives


    The Importance of Marketing Channel Strategies

    Why Do Marketing Channels Exist?

    Benefits for Downstream Channel Members

    Search Facilitation


    Benefits to Upstream Channel Members

    Routinization of Transactions

    Fewer Contacts

    The Key Functions Marketing Channels Perform

    Channel Functions

    Designing Channel Structures and Strategies

    Auditing Marketing Channels

    Auditing Channel Functions 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

    Make-or-Buy Channel Analysis

    Auditing Omni-Channels


    CHAPTER 3: Channel Power

    Learning Objectives

    Introduction: The Nature of Marketing Channels


    Power as a Tool

    The Five Sources of Channel Power

    Reward Power

    Coercive Power

    Expert Power

    Legitimate Power

    Referent Power

    Dependence as the Mirror Image of Power

    Defining Dependence

    Measuring Dependence

    Utility and Scarcity

    Percentage of Sales or Profits

    Role Performance

    Balancing Power: A Net Dependence Perspective

    Imbalanced Dependence

    Strategies for Balancing Dependence

    Strategies for Tolerating Imbalanced Dependence

    Power-Based Influence Strategies

    Omni-Channels and Power


    CHAPTER 4: Channel Relationships

    Learning Objectives


    Why Do Relationships Matter in Marketing Channels?

    Upstream Motives for Building a Strong Channel Relationship

    Downstream Motives for Building a Strong Channel Relationship

    Building Channel Commitment

    Need for Expectations of Continuity

    Need for Reciprocation: Mutual Commitment

    Strategies for Building Commitment

    How Downstream Channel Members Commit

    How Upstream Channel Members Commit

    Building Channel Trust

    Need for Economic Satisfaction

    Strategies for Building Channel Partners’ Trust

    Role of Noneconomic Factors

    Decision-Making Processes

    Overcoming Channel Distrust

    Preventing Perceptions of Unfairness

    The Channel Relationship Lifecycle

    The Five Stages of a Channel Relationship

    Managing the Stages

    Managing Troubled Relationships

    Relationship Portfolios

    Relationship Quality

    Multi-Channel Versus Omni-Channel Relationships


    CHAPTER 5: Channel Conflict

    Learning Objectives


    The Nature of Channel Conflict

    Types of Conflict

    Measuring Conflict

    Consequences of Conflict

    Functional Conflict: Improving Channel Performance

    Manifest Conflict: Reducing Channel Performance

    Major Sources of Conflicts in Channels

    Competing Goals

    Differing Perceptions of Reality

    Intrachannel Competition


    Identifying Multi-Channel Conflicts

    Managing Multiple Channels

    Unwanted Channels: Gray Markets

    Mitigating the Effects of Conflict in Balanced Relationships

    Conflict Resolution Strategies

    Forestalling Conflict through Institutionalization

    Information-Intensive Mechanisms

    Third-Party Mechanisms

    Building Relational Norms

    Using Incentives to Resolve Conflicts


    CHAPTER 6: Retailing Structures and Strategies

    Learning Objectives

    The Nature of Retailing

    Classification of Retailers


    Warehouse Clubs

    Department Stores

    Specialty Stores

    Full Line Discount Stores

    Convenience and Drug Stores

    The Retail Landscape

    The Big Players

    Modern Shifts and Challenges

    Retail Positioning Strategies

    Cost-Side Positioning Strategies

    Demand-Side Positioning Strategies


    Spatial Convenience

    Waiting and Delivery Time

    Product Variety

    Customer Service

    Retail Channels

    Internet Retail Channels & E-Commerce

    Direct Selling Channel

    Hybrid Retail Channels

    Retailer Power and Its Effects

    Effect on Forward Buying

    Effect on Slotting Allowance

    Effect on Failure Fees

    Effect on Private Branding

    Retailing Structures and Strategies


    CHAPTER 7: Wholesaling Structure and Strategies

    Learning Objectives


    What Is a Wholesaler?

    How Are Wholesalers Different from Distributors?

    The Wholesaler-Distributor Landscape

    Master Distributors

    Other Supply Chain Participants

    Wholesaling Strategies

    A Historical Perspective on Wholesaling Strategy

    Wholesaling Value-Added Strategies

    Alliance-Based Wholesaling Strategies

    Wholesaler-Led Initiatives

    Manufacturer-Led Initiatives

    Retailer-Sponsored Cooperatives

    Consolidation Strategies in Wholesaling

    Adapting to Trends in Wholesaling

    International Expansion


    B2B Online Exchanges

    Online Reverse Auctions

    Fee for Services

    Vertical Integration of Manufacturing into Wholesaling


    CHAPTER 8: Franchising Structure and Strategies

    Learning Objectives

    Franchising Formats

    Product and Trade Name Franchising

    Business Format Franchising

    The Franchising Arrangement

    Benefits of Franchising

    To Franchisees

    Start-Up Package

    Ongoing Benefits

    Competitive Advantages of Franchising

    To Franchisors

    Financial and Managerial Capital for Growth

    Harnessing the Entrepreneurial Spirit

    Reasons Not to Franchise

    Franchising Strategies

    Franchising Contracting Strategies

    Payment Systems



    Contract Consistency

    Contract Enforcement

    Self-Enforcing Agreements

    Company Store Strategies

    Market Differences

    Temporary Franchise and Company Outlets

    Plural Forms and Synergies

    Exploiting Franchises with Company Outlets

    Adapting to Challenges in Franchising

    Survival Trends

    Maintaining a Cooperative Atmosphere

    Managing Inherent Goal Conflict

    Multi-Unit Franchising

    Franchising and Omni-Channels


    CHAPTER 9: Channels and International Markets

    Learning Objectives


    Key Middlemen in International Business

    Export Management Companies

    Export Trading Companies


    International Retailing

    International Franchising

    International Distribution Challenges

    The Role of the Wholesaler

    Marketing to the Base of the Pyramid

    Defining the Market

    Ethical Considerations at the BOP

    Distribution to the BOP

    Omni-Channel and Global Marketing



    CHAPTER 10: End-User Analysis: Segmenting and Targeting

    Learning Objectives

    Introduction: Understanding the Importance of Channel Segmentation

    End-User Segmentation Criteria: Service Outputs

    Bulk Breaking

    Spatial Convenience

    Waiting or Delivery Time

    Product Variety and Assortment

    Customer Service

    Information Sharing

    Segmenting End-Users by Service Output

    Targeting End-User Segments

    Omni-Channels and End-User Segments


    CHAPTER 11: Omni-Channel Strategy

    Learning Objectives


    Key Challenges of the Omni-Channel Approach

    The Four Pillars of an Omni-Channel Strategy

    Harnessing Customer Knowledge

    Leveraging Technology

    Managing Channel Relationships

    Assessing Channel Performance




    Robert W. Palmatier is Professor of Marketing and John C. Narver Endowed Professor in Business Administration at the Foster School of Business, University of Washington, USA and the Research Director of the Sales and Marketing Strategy Institute.

    Eugene Sivadas is Professor of Marketing and Associate Dean at the Milgard School of Business, University of Washington Tacoma, USA.

    Louis W. Stern is John D. Gray Distinguished Professor Emeritus of Marketing at the Kellogg School of Management, Northwestern University, USA.

    Adel I. El-Ansary is the Donna L. Harper Professor of Marketing at the University of North Florida, USA.

    "Marketing Channel Strategy: An Omni-Channel Approach is fresh, insightful, and packed with information. The material is easy to read and digest and flows well. Readers will walk away with a clear understanding of the omni-channel ecosystem and how to build effective omni-channel strategies. The role and impact of omni-channels on each sector of the channel landscape is clearly laid out. The book is built on solid theoretical foundation but is very managerial at the same time." –Rajdeep Grewal, The Townsend Family Distinguished Professor and Area Chair, Marketing Editor-in-Chief, Journal of Marketing Research, Kenan-Flagler Business School, University of North Carolina-Chapel Hill, USA

    "Marketing Channel Strategy: An Omni-Channel Approach is a very readable and updated take on a classic text. Omni-channels are growing in importance, and they fundamentally change the way firms go to market and connect with their customers. Unfortunately, however, there are few available frameworks to guide managerial decision-making in this area. This book draws on current academic research and industry practice to develop a compelling strategic framework that fills this void in the literature. The framework’s guiding principle is the idea of an omni-channel ‘ecosystem,’ and the authors apply it to a variety of different channel contexts, including wholesaling, franchising, and retailing. The book is packed with insights, and the authors do an excellent job of illustrating them with current examples." –Jan B. Heide, Michael Lehman Distinguished Chair in Business, Wisconsin School of Business, University of Wisconsin-Madison, USA

    "This leading textbook on marketing channels is completely redone and offers a unique take on channel marketing management in the light of the present-day reality. Marketing Channel Strategy: An Omni-Channel Approach builds a model that shows students and practicing managers how to engage and make the customer experience seamless across multiple channels. I find the chapter on international channels and base of the pyramid particularly informative, pragmatic, and interesting. The book is modular and can be used in a variety of classes including retailing, international marketing, channels, e-marketing, and marketing strategy." –Constantine S. Katsikeas, Arnold Ziff Research Chair and Professor of Marketing and International Management, University of Leeds, UK

    "Effective omni-channel management is a critical source of value and an important differential edge in the modern marketplace. Given the trends toward omni-channel ecosystems, it is key that managers and managers-in-training (i.e., students) focus more of their attention on channel management. This cutting-edge text can be a catalyst for renewed interest in channel management; it highlights the need for a greater focus on this element of the go-to-market marketing strategy." Dhruv Grewal, Toyota Chair of Commerce and Electronic Business and Professor of Marketing, Babson College, USA

    "Marketing Channel Strategy: An Omni-Channel Approach blends theory with practice-oriented examples to clearly enunciate the difference between a multi-channel and omni-channel worldview. The examples and exercises make it easy for managers and students to grasp the challenges involved in developing effective omni-channel strategies. This book can be used as a stand-alone in a distribution or channel strategy class or modules can be used in a variety of marketing classes." –Robert Dahlstrom, Joseph Siebert Professor, Miami University, USA and Professor of Marketing, BI Norwegian Business School, Norway