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“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 ecosys-
tem 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 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 build-
ing 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 the-
oretical 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, dis-
tribution channels, B2B marketing, and retailing classes will enjoy acquiring the
most cutting-edge marketing skills from this book.
Ninth Edition
Robert W. Palmatier,
Eugene Sivadas, Louis W. Stern, and
Adel I. El-Ansary
First published 2020
by Routledge
52 Vanderbilt Avenue, New York, NY 10017
and by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
2020 Taylor & Francis
The right of Robert W. Palmatier, Eugene Sivadas, Louis W. Stern,
and Adel I. El-Ansary to be identified as authors of this work has
been asserted by them in accordance with sections 77 and 78 of the
Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or
reproduced or utilized in any form or by any electronic, mechanical,
or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or
retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks
or registered trademarks, and are used only for identification and
explanation without intent to infringe.
Library of Congress Cataloging-in-Publication Data
A catalog record for this title has been requested
Index 363
Contents
Introduction 1
Wholesalers 9
Retail Intermediaries 9
Specialized Intermediaries 10
Online Channels 11
Take-Aways 23
Introduction 36
Search Facilitation 37
Sorting 38
Routinization of Transactions 39
Fewer Contacts 39
Channel Functions 42
Service Gaps 62
Cost Gaps 63
Auditing Omni-Channels 71
Take-Aways 75
C on t en t s xi
Power 83
Power as a Tool 83
Reward Power 85
Coercive Power 86
Expert Power 88
Legitimate Power 89
Referent Power 91
Defining Dependence 93
Measuring Dependence 94
Role Performance 95
Imbalanced Dependence 97
Take-Aways 102
Introduction 107
Take-Aways 137
Introduction 141
Omni-Channels 153
Take-Aways 167
Supermarkets 172
Bulk-Breaking 187
Take-Aways 206
Introduction 217
Omni-Channels 237
Take-Aways 245
To Franchisees 256
To Franchisors 260
Leasing 270
Termination 271
Take-Aways 288
Introduction 293
Piggybacking 297
Take-Aways 314
C on t en t s xvii
Bulk-Breaking 323
Take-Aways 337
Introduction 345
Take-Aways 359
Index 363
Figures, Tables, Sidebars,
and Appendices
FIGURES
TABLES
SIDEBARS
APPENDICES
The primary goal for this Ninth Edition, as reflected in the change in the title—from
Marketing Channel Strategy to Marketing Channel Strategy: An Omni-Channel Approach—
has been to create a completely repositioned, comprehensive, research-based,
readable, action-oriented guide for practicing managers and managers-in-training
with an interest in how to adopt and apply real-world omni-channel strategies. This
edition of the book is structured to provide background knowledge and process steps
for understanding, designing, and implementing high-performing omni-channel
strategies.
Many significant changes have been made to the Ninth Edition. A new
omni-channel strategy framework, introduced in Chapter 1, defines the structure
of the rest of this book, providing an approach that guides managers through the
steps necessary for developing and implementing an omni-channel strategy. We
offer a distinction between omni-channel and multi-channel strategies in this
chapter, outline the tasks and functions of channel members, and provide a snap-
shot of the various actors involved in a marketing channel ecosystem. This chapter
also addresses topics such as going to market with an omni-channel strategy and
the five trends driving the growth of omni-channels. To help channel manag-
ers design a strategy and manage it over time, Chapter 1 addresses some central
omni-channel questions:
• What are the key trends in omni-channel strategy and going to market with such
a strategy?
xxiv Pr eface
In each chapter of the book, we have added several pull-out examples from around
the world; we also provide longer sidebars in each chapter in an effort to bring
the concepts outlined in the book to life. With a renewed focus on readability, we
acknowledge that developing sound channel strategies first requires that managers
have a good understanding of channel fundamentals, along with a more detailed
understanding of the various intermediaries involved in omni-channel marketing.
The first part of the book (Chapters 1–5) accordingly focuses on channel and
omni-channel fundamentals. In Chapter 2, we review omni-channel and channel
basics. We discuss the benefits of marketing channels for upstream and downstream
channel members, the key functions marketing channels perform, and how to audit
marketing channels and omni-channels in particular. Chapter 2 draws from materi-
als that were part of Chapters 3–5 in the Eighth Edition. Chapter 3 details issues of
power and dependence; Chapter 4 focuses on channel relationships. Chapter 5 then
deals with channel conflict (covered in Chapters 10–12 in the previous edition).
These vastly rewritten chapters reflect an omni-channel perspective, replete with
current examples. We have moved the discussion of these topics earlier in the book,
in the belief that to implement effective channel and omni-channel strategies, we
need a good grasp of the issues that channel managers frequently encounter.
Next, the second part comprises Chapters 6–9, with a specific focus on chan-
nel participants in retailing, wholesaling, franchising, and international channel
domains, respectively. Reflecting our revised perspective on omni-channel consid-
erations, discussions that previously appeared in a separate chapter on e-commerce
have been integrated with retailing (Chapter 6). In addition, we integrate substan-
tial discussions of e-commerce in various chapters, to reflect the role of mobile
commerce and other emerging technologies. All chapters have been updated with
current examples and recognition of modern trends in retailing, wholesaling, and
franchising, as well as how the move to omni-channels is affecting these sectors.
The new Chapter 9, focused on international channels, describes ways to distribute
products overseas and the various methods for doing so, from exporting and export
management companies to vast trading companies. We also introduce a section
about marketing to channels at the base or bottom of the pyramid and provide
more insights about channels as they appear in emerging markets.
The third part deals with omni-channel strategies. Whereas in the Eighth Edition,
the end-user analysis appeared in Chapter 2, in the current edition, we shift it
to Chapter 10, so that we can better integrate omni-channel perspectives. Thus
the revised text outlines the challenges of end-user analysis and segmentation in
omni-channel contexts. In Chapter 11, we outline omni-channel strategies and the
four pillars on which such strategies should be built.
Some chapters on channel legalities and channel logistics have been removed.
Overall, then, Marketing Channel Strategy: An Omni-Channel Approach is designed
for an international audience of practicing managers and managers-in-training.
The focus is firmly on going to the market with an omni-channel strategy—that is,
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