Getting multi-channel distribution right. (2020)

• Record Type: Book
• Further Information: Note: Kusum L. Ailawadi, Paul W. Farris.
• Authors: Ailawadi, Kusum L; Farris, Paul W
• Contents: About the Authors xxi Acknowledgments xxiii Preface xxv Chapter 1 Distribution Channels Today 1 1.1 Introduction 1 1.2 What is New: Radical Changes in the Navigation of Distribution Channels 4 1.2.1 Changing Business Models 5 1.2.2 Omni-Channel Retailing 6 1.2.3 Data 7 1.2.4 Regulation 9 1.3 The Road Ahead 10 Part I The Bedrock of Channel Functions, Power, and Conflict 13 Chapter 2 Push, Pull, and Total Channel Performance 15 2.1 Introduction 15 2.2 An Organizing Framework Illustrated with Natura’s Distribution Channel 16 2.2.1 Push 16 2.2.2 Pull 17 2.2.3 Supplier Inputs, Downstream Effects, and Channel Performance 17 2.3 Push-Pull Inputs and Downstream Effects in PepsiCo’s Channel 20 2.4 Push and Pull for Services and Digital Channels 21 2.5 Beneficial and Harmful Feedback Loops in the Push-Pull System 23 2.6 Conclusion 26 Chapter 3 Root Causes of Channel Conflict 29 3.1 Introduction 29 3.1.1 Examples of Channel Conflict 31 3.1.2 Myopia and Four Root Causes of Conflict that Strain the Partnership 32 3.2 Uncoordinated Pricing and Selling Effort 33 3.2.1 Double, Triple, and Quadruple Marginalization 33 3.2.2 Loss Leaders Have Their Own Problems 37 3.3 Over- and Under-Distribution 40 3.3.1 Under-Distribution 40 3.3.2 Over-Distribution 42 3.3.3 Competing with Your Customers 44 3.3.4 Unauthorized Distribution 45 3.4 Division of Work and Pay: Who Sold That? 46 3.4.1 The Case of Leather Italia: Functions Performed and Margin Earned 46 3.4.2 Free Riding on Showrooms, Webrooms, and Billboards 49 3.5 Adapting to Change: Where Does the Future Lie? 51 3.6 Conclusion 52 Chapter 4 Middlemen in Today’s Channel Ecosystem and Their Functions 57 4.1 Introduction 57 4.2 Brick-and-Mortar Intermediaries 60 4.3 New Digital Intermediaries 64 4.4 Support Service Providers 67 4.5 What’s Different about Today’s Channel Functions 69 4.5.1 The Critical Nature of Delivery and Returns 69 4.5.2 Increasingly Targeted Selling and Peer Persuasion 71 4.5.3 Location Means More, Not Less 72 4.5.4 Agglomeration is Alive and Well 74 4.6 Conclusion 74 Chapter 5 The Sources and Indicators of Power in the Channel 79 5.1 Introduction 79 5.2 Power in the Channel and Its Sources 81 5.2.1 How Social Psychologists and Economists Think about Power 81 5.2.2 Sources of Power in the Distribution Channel 83 5.3 Consumer Search Loyalty: The Ultimate Source of Power 85 5.3.1 Loyalty to the Brand or to the Channel? 86 5.3.2 Search Loyalty: Hard to Get, Harder to Measure in the Physical World 87 5.3.3 Fake It Till You Make It? 89 5.3.4 is Loyalty a Dinosaur in the Digital World? 89 5.4 Economic Indicators of Power 91 5.4.1 Monopoly Power: The Lerner Index and Price Elasticity 91 5.4.2 Manufacturer versus Retailer Price Elasticity and How It Can Distort Power Assessment 93 5.4.3 Profitability as a Sign of Power 94 5.5 Conclusion 96 Chapter 6 Using Power Without Using It Up 99 6.1 Introduction 99 6.2 Applying Power in Channel Relationships 100 6.3 Investments and Safeguards: Efficient Partnership or Power Struggle? 103 6.3.1 Make Partner-Specific Investments with Open Eyes 103 6.3.2 Safeguards Protect Each Party’s Interests 104 6.3.3 Safeguards Can Outlive Their Usefulness 105 6.3.4 How Automobile Dealer Safeguards Came to Be 106 6.4 The Challenge of Preserving Power 107 6.4.1 Using Up Power: The “Objectification” of Leather Italia USA 108 6.4.2 Pushing Power Too Far or Giving It Up: Retailers and Their Private Labels 110 6.4.3 Should National Brand Manufacturers Produce Private Labels? 111 6.5 Vertical Restraints: Welfare Enhancing or Anticompetitive? 112 6.6 Conclusion 116 Part II Metrics, Tools, and Frameworks for Getting the Right Distribution 121 Chapter 7 Metrics for Intensity and Depth of Distribution Coverage 123 7.1 Introduction 123 7.2 A Framework for Measuring Distribution and Matching It to Demand 124 7.3 Measuring Stocking Outlet Findability: Metrics for Intensity of Distribution Coverage 127 7.3.1 Importance of Outlets Can Be Measured by Their ACV, PCV, and GMV 128 7.3.2 Traffic and Search are Important, Perhaps Even More Than Sales Volume 131 7.3.3 Online or Offline, Stocking Outlets Have to Be Findable 133 7.3.4 The Double-Edged Sword of Increasing Importance of a Channel Member 136 7.3.5 Integrate Metrics Across Offline and Online Channels 137 7.4 Metrics for Distribution Depth 138 7.4.1 Total Distribution Provides More Information Than Brand Distribution 139 7.4.2 Aggregate Other Depth Metrics Only Across Stocking Outlets 140 7.4.3 Getting the Data to Monitor These Metrics 141 7.5 Conclusion 142 Appendix: An Example to Calculate Basic Distribution Metrics 143 Chapter 8 What are You Managing Towards? 147 8.1 Introduction 147 8.2 A Hierarchy of Performance Metrics 149 8.2.1 Compliance Metrics Can Catch Problems Early 150 8.2.2 Cross- and Omni-Channel Metrics are Increasing in Importance 152 8.2.3 Both Parties Care about Sales, Share, and Sales Velocity but in Slightly Different Forms 154 8.2.4 Gross and Net Margins, Category, and Customer Profitability 156 8.3 Conclusion 160 Chapter 9 The Challenge of Optimizing Distribution Breadth 163 9.1 Introduction 163 9.2 Classic Categorizations of Products and Distribution Coverage 165 9.3 Consumer Search Loyalty and Distribution Elasticity 167 9.3.1 How Consumer Search Loyalty Reduces Distribution Elasticity 169 9.3.2 Empirical Evidence of Distribution 170 9.3.3 Feedback Effects and Longer-Term Distribution Elasticity 172 9.4 The Difficulties of Optimizing Distribution Coverage 172 9.4.1 The Complexity of Distribution Costs 173 9.4.2 Discontinuities Arising from Retail Structure 175 9.4.3 Distribution is Not under the Complete Control of the Supplier 175 9.5 Conclusion 176 Chapter 10 Using Velocity Graphs to Guide Sustainable Distribution Coverage 179 10.1 Introduction 179 10.2 The Concept of a Velocity Graph 180 10.2.1 Sustainable Positions Likely Lie Close to the Velocity Graph 181 10.2.2 Special Logistics Can Allow a Brand to Persist “Off” the Graph 182 10.2.3 Three Main Variants of Velocity Graphs 182 10.3 Insights from Velocity Graphs: An Illustration with Laundry Detergents 183 10.3.1 Brand Distribution Velocity Graphs 183 10.3.2 Total Distribution Velocity Graphs 186 10.4 Velocity Graphs, State Franchise Laws, and Overdistribution of U.S. Auto Makers 188 Chapter 11 Augmenting the Distribution Mix: Digital Channels and Own Bricks and Clicks 193 11.1 Introduction 193 11.2 A Variety of Own-Stores to Augment Distribution by Independent Resellers 194 11.2.1 Store-Within-a-Store to Improve Distribution Depth 194 11.2.2 Flagship Stores and Outlets Stores are at Two Extremes of the Branding Spectrum 196 11.2.3 Look Before You Leap with Regular Physical and Web Stores 198 11.2.4 Showrooms are a Little Like Flagship Stores 200 11.3 The Inevitability and Challenge of Online Distribution 201 11.3.1 Whether to Be Online is No Longer Debatable 201 11.3.2 Coverage Versus Control is a Steeper Trade-off Online 202 11.3.3 How Viable is the Online Channel’s Revenue and Profit Model? 205 11.4 Be Clear about “Why” to Decide “How” to Distribute Online 205 11.4.1 Which Segments are You Tryin
• Edition: 1st
• Publisher Details: Hoboken, New Jersey : John Wiley & Sons, Inc
• Publication Date: 2020
• Extent: 1 online resource
• Subjects: 658.87; Marketing channels
• Languages: English
• ISBNs: 9781119632917; 9781119632900
• Related ISBNs: 9781119632887
• Notes: Note: Description based on CIP data; resource not viewed.
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