Upload
hakien
View
216
Download
0
Embed Size (px)
Citation preview
Brief Contents
Preface XIX
PART 1: INTRODUCTION 1
Chapter 1 Marketing Channels: Structure and Functions 1
PART11: CHANNEL DESIGN: DEMAND, SUPPLY,
AND CHANNEL EFFICIENCY 40
Chapter 2 Segmentation for Marketing Channel Design:Service üutputs 40
Chapter 3 Supply Side Channel Analysis: Channel Flowsand Efficiency Analysis 72
Chapter 4 Supply-Side Channel Analysis: Channel Structureand Intensity 112
Chapter 5 Gap Analysis 154
PART 111: CHANNEL IMPLEMENTATION 196
Chapter 6 Channel Power: Getting It, Using It, Keeping It 196
Chapter 7 Managing Conflict to IncreaseChannel Coordination 243
Chapter 8 Strategic Alliances in Distribution 289
Chapter 9 Vertical Integration in Distribution 330
Chapter 10 Legal Constraints on Marketing Channel Policies 377
PARTIV: CHANNEL INSTITUTIONS
Chapter 11 Retailing 425
Chapter 12 Wholesaling 484
Chapter 13 Franchising 518
Chapter 14 Logistics and Supply Chain Management 560
Company Index 577Name Index 583
Subject Index 589
vii
Contents
PREFACE xix
PART1: INTRODUCTION 1
CHAPTER 1 Marketing ChanneIs: Structure and Functions 1
What Is a Marketing Channel? 2
Why Do Marketing Channels Exist and Change? 5Demand-SideFactars 6
Supply-SideFactars 7
What Is the Work of the Marketing Channel? 10
Who Belongs to a Marketing Channel? 14Manufacturers 14lntermediams 15End-Users 16
Channel Formatsas Combinationsof Channel Members 16
A Framework for Channel Analysis 17Channel Design:Segmentation 17Channel Design: Channel StructureDecisions 19Channel Design:Splitting the WarkÚJad 21Channel Design:Degreeof Commitment 22Channel Design: GapAnalysis 22Channellmplementation: ldentifying PowerSources 24Channellmplementation: ldentifying Channel Conflicts 24Channellmplementation: The Goalof Channel Coardination 25Channel Design and lmplementation:lnsights far SPecificChannellnstitutions 25
Organization of the Text 27
Summary 27
Discussion Questions 29
Endnotes 30
Appendix lA: Alternate Channel Formats 33
PART11: CHANNEL DESIGN: DEMAND, SUPPLY,
AND CHANNEL EFFICIENCY 40
CHAPTER 2 Segmentation for Marketing Channel Design:Service Outputs 40
End-User Channel Preferences 41
Service Outputs 43
ix
X Contents
Segrnenting the Market by Service Output Demands 55
Meeting Service Output Demands 59
The Role of Service Output Demand Analysis inMarketing Channel Design 61
Discussion Questions 64Endnotes 65
Appendix 2A: The Service Output Demands Template 68
CHAPTER 3 Supply Side Channel Analysis: Channel Flowsand Efficiency Analysis 72
Channel Flows Defined 73EightGenericChannelFlows 73CustomizingtheListofFlowsfor aParticularChannel 91WhoDoesWhichChannelFlows" 92
Describing the Current Channel with the Efficiency Template 92
Using Channel Flow Concepts to Design a Zero-Based Channel 98
Matching Normative and Actual Profit Shares:The Equity Principie 100
Summary: Channel Flow Analysis as Part of theOverall Channel Audit Process 101
Discussion Questions 103Endnotes 104
Appendix 3A: The Efficiency Template 106
CHAPTER 4 Supply-Side Channel Analysis: Channel Structureand Intensity 112
Introduction 113
Coverage versus Assortment: Framing the Decisions of Upstream andDownstream Channel Members 114
WhyMoreCoverageIs Betterfor ManufacturersofConvenienceGoods 114WhyDownstreamChannelMembersDislikeIntensiveDistribution 115CantheManufacturerSustainIntensiveDistribution? 119Degreeof CategoryExclusivity:TheDownstreamChannelMember'sDecision 120
Striking a Deal: How Much Selectivity to Trade Away 122TheThreatof Complacency 122TheNatureoftheProductCategory 122BrandStrategy:QualityPositioningandPremiumPricing 124BrandStrategy:TargetMarket 127
Bargaining for Influence over Channel Members 127DesiredCoordination 128Manufacturer-SPecificInvestmentsbyDownstreamChannelMembers 129DependenceBalancing: Trading TerritoryExclusivity
for CategoryExclusivity 131Reassurance:UsingSelectivitytoStabilizeFragileRelationships 134ThePriceof theConcession:Factoringin DpportunityCost 135
Contents xi
Back to the Basics: Cutting Costs and Raising Sales 137SavingMoneybyLimitingtheNumberof TradingPartners 137DoMoreTradingPartnersReallyMeanMoreRevenue? 138A Cautionon thelssueofLimitingtheNumberof TradingPartners 139
Simulating the Benefits of Selectivity While MaintainingIntensive Coverage 140
Going to Market via Multiple Types ofChannels 141
Dual Distribution: Going to Market viaIndependent Channels and Self-Owned Channels 144
lnherentRivalry 144TheDemonstrationArgument 144
Carrier-Rider Relationships 145
Summary 146
Discussion Questions 149Endnotes 150
CHAPTER 5 Gap Analysis 154
Sources and Types of Channel Gaps 155SourcesofGaps 155Typesof Gaps:Demand-SideGaps 168Typesof Gaps:Supply-SideGaps 174CombinedChannelGaps 176
Closing Channel Gaps 180ClosingDemand-SideGaps 180ClosingSupply-SideGaps 183ChallengingGapsProducedbyEnvironmentalorManagerialBounds 184
Pulling It Together: The Gap Analysis Template 185
Discussion Questions 192Endnotes 192
PARTIII: CHANNEL IMPLEMENTATION 196
CHAPTER 6 Channel Power: Getting It, Using It, Keeping It 196The Nature of Power 196
PowerDejined 197ls PowerGoodorBad? 198
'WhyMarketing ChannelsRequirePower 199
Power as the Mirror Image of Dependence 200SpecifyingDependence 200Measuring DependenceDirectly 201Measuring Dependencevia Proxylndicators 203
The Greatest Source: Reward Power 204
Four More Sources ofPower 209CoercivePower 209
ExpertPower 210
xii Contents
LegitimatePower 214ReferentPower 216Separating theFivePowerSources 216Putting lt Together:What ls Powerand How Do Youlndex lt?
The Balance ofPower 219Net Dependence 2191mbalancedDependence:ls Exploitation Inevitable? 2201mbalancedDependence:Countermeasuresfor the WeakerPartyTolerating1mbalancedDependence:The Most CommonSeenario
Exercising Power: Influence Strategies 226Six lnfluence Strategies 227The ConsequencesofEach StrategyHow to Framean lnfluence Attempt
Summary 230Discussion QuestionsEndnotes 238
218
222224
228229
238
CHAPTER 7 Managing Conflict to IncreaseChannel Coordination 243
Assessing the Degree and Nature of Channel Conflict 244What ls Channel Conflicl? 244Measuring Conflict 246
The Consequences ofConflict 247When Conflictls Desirable 247How lntense ConflictDamagesChannel Performance
and Coordination 249
Major Sources of Conflict in Marketing Channels 251CompetingGoals 251DifferingPerceptionsof Reality 252
Clash of Market Domains 256
lntrachannel Competition 256Multiple Channels:No Longer Unusual 257ls lt Really a Problem? 259What SuppliersCan Do 262Unwanted Channels:GrayMarkets 263
Fueling Conflict 266ConflictBegetsMore Conflict 266Threats 266
Conflict Resolution Strategies: How They Drive Conflict and ShapeChannel Performance 271
Resolving Conflict:lnstitutionalized MechanismsDesignedto Contain ConflictEarly 271
Stylesof ConflictResolution:How Channel MembersHandle Disputesand NegotiatetoAchieve Their Goals 275
Resolving Conflictand Achieving Coordinationvia lncentives 277
Summary 281
Discussion Questions 284Endnotes 285
Contents xiü
CHAPTER 8 Strategic Alliances in Distribution 289
Strategic Alliances: Their Nature and the Motivesfor Creating Them 290
What ls a StrategicDistributionAlliance? 290WhyForgea StrategicDistributionAlliance? UpstreamMotivesWhyForcea StrategicDistributionAlliance?DownstreamMotivesDo Alliances OutperformOrdinary Channels? 297
Building Commitment by Creating Mutual VulnerabilityThe Minimum &quirement: Expectationsof Continuity 299Why Commitmentls Ni! Unlesslt ls Mutual 300How the OtherSide Gauges YourCommitment 302Actions That Bind Distributorsto Suppliers 305Actions That Bind Suppliersto Distributors 306CreatingAlliancesvia Ties That Bind 306
Building Commitment by the Managementof Daily Interactions 308
How Can Channel MembersManufacture Trust?TheFundamental Role of EconomicSatisfactionNoneconomicSatisfactionAlso Matters 312Picking thePartner and theSetting 314
Decision Structures That Enhance Trust 316
How Do YouManufacture Trust in a Channel? 317
Moving a Transaction Through Stages of Developmentto Reach Alliance Status 317
FromCradleto Grave:The Life of a Marketing Channel PartnershiPManaging theStages 320Managing Troubled&lationshiPs 321The Virtuesof a Porifolioof &lationshiPs 321
Putting It AlI Together: What Does lt Take and When DoesIt Pay to Create a Marketing Channel Alliance? 323
Discussion Questions 326
Endnotes 327
292295
299
311311
317
CHAPTER 9 Vertical Integration in Distribution 330Introduction 330
FivePuzzles 331
Make orBuy: A CriticalDeterminant of CompanyCompetencies 332ChapterOrganization 332
The Costs and Benefits ofVertical Integrationin Marketing Channels 333
DegreesofVertical lntegration 333Costsand Benefitsofthe Choiceto Make 335The Choiceto Buy Distribution: Termsof Payment to Third Parties 337
Deciding When to Vertically Integrate Forward:An Economic Framework 339
&turn on lnvestment: The Usual Criterion 339
Outsourcingas the Starting Point 340Six &asons to OutsourceDistribution 341
xiv Contents
Vertical Integration Forward When Competiúon Is LowCompany-SPecijicCapabilities 346Six Typesof Company-SpecijicCapabilitiesin Distribution 350Rnrity versusSpecijicity:The Effectsof Thin Markets 358Turning theLens Around: Should the Channel MemberIntegrateBackward?
Verúcal Integration to Cope with Environmental Uncertainty
Vertical Integration to Reduce Performance Ambiguity 363The BaselineProblem 363Results Indicators That Are Inaccurate,Late, or Nonexistent
Summary of the Decision Framework 365
Vertical Integraúon as an Observatory on the Market or as an Opúon:Economic Rationality or Rationalization? 367
Summary 370
Discussion QuesúonsEndnotes 374
346
358
360
364
373
CHAPTER lO Legal Constraints on Marketing Channel Policies 377
Market Coverage Policies 378
Customer Coverage Policies 383
Pricing Policies 384PriceMaintenance 385PriceDiscrimination 388
Product Line Policies 399ExclusiveDealing 399Tying 403Full-LineForcing 405DesignatedProductPolicies 407
Selecúon and Termination Policies 408
Ownership Policies 411VerticalIntegrationbyMerger 412VerticalIntegrationbyInternalExpansion 413DualDistribution 413
Summary and Conclusions 414
Discussion Quesúons 418Endnotes 418
PART IV: CHANNEL INSTITUTIONS
CHAPTER 11 Retailing 425
Retailing Defined 425
Choosing a Retail Positioning Strategy 426Financial and Cost-SidePositioning:Margin and
Inventory TurnoverGoals 435Demand-SidePositioning 442Implicationsfor a Taxonomyof Retail Types 449
Contents xv
Strategic Issues in Retailing 451ManagingtheMultichannelShoppingExperience 451Recognizingand Responding to the Continued StrongPowerPosition
ofMajorRetailers 463TheContinuedGlobalizationofRetailing 470
Summary and Conclusions 472
Discussion Questions 474Endnotes 475
Appendix 11A:A Glossary of Pricing andBuying Terms Commonly Used by Retailers
Appendix 11B: Merchandise Planning and Control
479
481
CHAPTER 12 Wholesaling 484
Introduction 484
An Overview of the Wholesaling Sector 485Wholesaler-Distributors 485
TheWholesaler-Distributor'sRolein theSupplyChain 486The ImportanceofWholesaler-Distributors 487
What the Independent Wholesale Sector Offers:The Essential Tasks 488
ThreeCreat ChallengesofWholesaling: 200 YearsofPharmaceuticals 489Wholesalingin an EmergingEconomy 490Surprising Waysfor WholesalerstoAdd Value 492MasterDistributors 493
Federations ofWholesalers 495Wholesaler-LedInitiatives 496
IntegratedSupply 496Manufacturer-LedInitiatives 496The Requirementsfor Innovative WholesaleService 497
Voluntary and Cooperative Groups 498WholesalerVoluntaryGroups 498Alternative FederationsofDownstreamChannel Members 499
Consolidation 502
ConsolidationPressuresin Wholesaling 502The Manufacturer's Responseto WholesaleConsolidation 504
Export Distribution Channels 505
The Future ofWholesaler-Distributors 506
International Expansion 506ElectronicCommerce 507
B2B E-OnlineExchanges 508Online ReverseAuctions 509
Capturing ValueAfter CreatingValue:WholesalerProfitability 509
A Sketch ofVertical Integration and of Agents in Wholesaling 510VerticalIntegrationForwardinto WholesalingbyManufacturers 510Set thePriceand SeetheBuyer:Agents, Brokers,and CommissionAgents 511
xvi Contents
Summary 513
Discussion Questions 515Endnotes 515
CHAPTER 13 Franchising 518
What Is Franchising? 518
Why Become a Franchisee? 520The Start-UpPackage 523Ongoing Benefits 523Why Ask a FranchisartoProvide TheseServices? 524
Why Become a Franchisor? 525Rnising Financial and Managerial CaPitalto GrowFast 525Hamessing theEntrepreneurialSpirit 527When Is FranchisingInappropriate? 530
The HistoricaI Roots of Franchising 531The A uthorizedFranchiseSystem:Moving theProduct 531The Dividing Line: WhenDoesFranchisingStop? 535
The Franchise Contract 536
Giving and Taking Hostages, Or Why YouShouldn't Leave It to Lawyers 536The Payment System 537Who WiUBe the Landlard? 539Termination 539
Why ContractsDo Not Varywithin a System 540SafeguardsOutside the Contract 540WhenDoFranchisarsEnfarceTheir Contracts? 541
Why Franchise Systems Include Company Outlets 543Variation in Situatí~s 543
TempararyFranchisesand TempararyCompanyStares 544The Plural Farm:Exploiting theSynergyof Having Both Company
and FranchiseeOutlets 544
Exploiting Franchisees:&direction of OwnershiP 546
Ongoing Challenges Facing the Franchisor 547Survival 547
Gaining and Keeping a CooperativeAtmosphere 548Inherent Goal Conflict 549Multiunit Franchising:Handicap arAdvantage? 550OtherWaysto Cain Cooperation 552
Summary 552
Discussion Questions 555
Endnotes 556
CHAPTER 14 Logistics and SuppIy Chain Management
The Impact of Logistics and SuppIy Chain Management
Responding Efficiently 561Efficient Consumer&sponse 563Obstaclesto Efficient Consumer&sponse 564
560
560
Contents xvii
Responding Rapidly 565
Putting It AlI Together: What Is the Right Supply Chain? 566PhysicalEfficiencyversusMarket Responsiveness 566Supply Chain Management: Why Only Now? 571
Surnrnary 572
Discussion Questions 573Endnotes 574
COMPANY INDEX 577
NAME INDEX 583
SUBJECT INDEX 589