Marketing Channels A Management View Third Edition
Bert Rosenbloom Drexel University
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The Dryden Press Chicago New York Philadelphia San Francisco Montreal Toronto London Sydney Tokyo Mexico City Rio de Janeiro Madrid
Contents Part One Marketing Channel Systems
Chapter 1 Marketing Channel Concepts 3 The Marketing Channel Defined 4 The Marketing Channel and Marketing Management Strategy 6 Channel Management versus Physical Distribution Management 8 Flows in Marketing Channels 10
Chapter 2 The Channel Participants An Overview of the Channel Participants 29 Producers and Manufacturers
Distribution through Intermediaries 14 Channel Structure 18 Ancillary Structure 23 Summary 24
Chapter 3 The Environment of Marketing Channels The Marketing Channel and Environment 65 The Economic Environment 67 The Competitive Environment 74
65
The Sociocultural Environment 78 The Technological Environment 83 The Legal Environment 89 Summary 100
Chapter 4 Behavioral Processes in Marketing Channels The Marketing Channel as a Social System 104 Conflict in the Marketing Channel 105 Power in the Marketing Channel
61
103
Role in the Marketing Channel 131 Communication Processes in the Marketing Channel 133 Summary 138 121
Contents
Part Two Developing the Marketing Channel
141
Chapter 5 Designing the Marketing Channel 143 What Is Channel Design? 143 Who Engages in Channel Design? 144 Differential Advantage and Channel Design 144 A Paradigm of the Channel Design Decision 146 Phase 1: Recognizing the Need for a Channel Design Decision 146 Phase 2: Setting and Coordinating Distribution Objectives 149
Phase 3: Specifying the Distribution Tasks 153 Phase 4: Developing Possible Alternative Channel Structures 155 Phase 5: Evaluating Variables Affecting Channel Structure Phase 6: Choosing the "Best" Channel 166 Summary 176
158
Chapter 6 Selecting the Channel Members 179 Channel Member Selection and Channel Design 179 The Selection Process 180 Finding Prospective Channel Members 181
Applying Selection Criteria 188 Securing the Channel Members 194 Summary 199
Chapter 7 Target Markets and Channel Design Strategy 201 A Construct for Market Analysis Market Geography and Channel Design Strategy 202 Market Size and Channel Design Strategy 207
201
Market Density and Channel Design Strategy 208 Market Behavior and Channel Design Strategy 211 Summary 219
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Contents
Part Three Managing the Marketing Channel Chapter 8 Motivating the Channel Members Finding Out the Needs and Problems of Channel Members 224 Offering Support to Channel Members 231
221
223 Providing Leadership to Motivate Channel Members 244 Summary 248
Chapter 9 Product Issues in Channel Management The Product and Channel Management 251
Summary
Chapter 10 Pricing Issues in Channel Management Pricing and Channel Management Interfaces 277 Guidelines for Developing Effective Channel Pricing Strategies 282
251
277
Other Issues in Channel Pricing Summary 296
Chapter 11 Promotion through the Marketing Channel Constraints on Channel Member Promotional Support 301 Promotional Strategies and Channel Member Cooperation 304
275
Summary
299 320
Chapter 12 Physical Distribution and Channel Management 323 Physical Distribution and Channel Management 326
Summary
336
288
Contents
Part Four Appraising the Marketing Channel
339
Chapter 13 Evaluating Channel Member Performance 341 Factors Affecting Scope and Frequency of Evaluations 341 Performance Evaluation versus Day-to-Day Monitoring 343
Channel Member Performance Audit Summary 360
344
Chapter 14 Vertical Marketing Systems and Channel Management 363 Administered Systems 364 Contractual Systems 369 Corporate Systems 381 Summary 385
Appendix 14A Evelyn Wood Reading Dynamics: A Franchise Contract 389
Part Five Additional Perspectives o n M a r k e t i n g Channels
Chapter 15 Direct Selling and Direct Marketing Channel Systems 403 Direct Selling Channels 403 Direct Marketing "Channels" 415
Summary
425
Chapter 16 International Channel Perspectives 429 Environment of International Channel Management 430 Behavioral Processes in International Channels 434 Designing International Channels 435
Motivating International Channel Members 442 Summary 447
401
Contents
Part Six Cases in Marketing Channels
Casel La Glace Ice Cream Phasing Out Distributors 453
Case 2 Morton Products Inc. Future Prospects for an Industrial Distributor 456
Case 3 Airwick Industries, Inc. Changing Channel Strategy to Meet a Changing Environment 465
Case 4 Hassler and Howard: Manufacturers' Representatives Dealing with Channel Conflict 468
Case 5 Tender Lovin Chicken Abuse of Channel Power? 474
Case 6 Lafontaine Potteries Limited Selecting Channels of Distribution 476
Case 7 Star Chemical Company Evaluating Alternative Channel Structures 479
Case 8 The Oliver Corporation Finding Prospective Dealers 481
Case 9 Hershey Foods Corporation Motivating Channel Members to Stock the Full Product Line 484
451
Contents
Case 10 Innovative Toys Inc. (A) Revamping Channel Strategy 487
Case 11 Innovative Toys Inc. (B) Consumer Shopping Behavior and Channel Design 490
Case 12 The Mass Market Paperback Distribution System An Opportunity for Better Channel Management?
499
Case 13 Dunkin' Donuts Incorporated Channel Member Training 503
Case 14 Kelsey Manufacturing Company Getting Middlemen to Promote the Manufacturer's Products 506
Case 15 Volvo Incentive Program for Superior Dealer Service 509
Case 16 Hill Industrial Supply Distribution Programming through Systems Selling 512
Case 17 Wolverine Brass Works Using the Marketing Mix to Build a Strong Channel 519
Case 18 Clarkson Cold Products Company Channels of Distribution for a New Product 525
Case 19 Hyde-Phillip Chemical Company Alternative Forms of Sales Representation
527
Contents
Case 20 Auditing Distribution Channels Using Market Research for Better Channel Management 531
Case 21 Koehring Company Evaluating Channel Member Performance 537
Case 22 Westron Incorporated Administered Vertical Marketing Systems 544
Case 23 Pepsi-Cola Bottlers Association Organization of a Franchised Channel 546
Case 24 Lady Finelle Cosmetics The Direct Selling Channel 549
Case 25 Interand Corporation Developing Foreign Marketing Channels 556
