Marketing Channels (7th Edition). Home · Marketing 35MB Size Report. DOWNLOAD PDF Marketing: Real People, Real Choices, 7th Edition. Read more. Marketing Channels (6th Edition) Anne T. Coughlan, Erin Anderson, Louis W. Stern W. Stern ebook PDF download. Marketing Channels (6th Edition) by Anne. Coughlan Anderson Stern El-Ansary. Anne Coughlan/Erin Anderson/Louis W. Stern/Adel El-Ansary. From Marketing Channels 7/e, Anne T. Coughlan, Erin Anderson, Louis W. Stern, Adel I. El-Ansary.
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By Anne Coughlan. For complex undergraduate and/or graduate-level classes in Distribution Channels, advertising Channels or advertising structures. PDF | Advances in information technology and changing customer needs for channel service outputs have dramatically marketing channels, and coordinate and create incentives for . and leverage specialized functions (Coughlan et al. Anne T. Coughlan, Northwestern University FIGURE MARKETING FLOWS IN CHANNELS. Physical “I only need one copy of my Marketing textbook!”.
Van Bruggen1, Kersi D. Antia2, Sandy D. Reinartz4, and Florian Pallas5 Abstract Advances in information technology and changing customer needs for channel service outputs have dramatically affected the routes to markets in many industries.
The authors identify the new market operating realities driving channel multiplicity and provide an overview of the consequences for channel design and channel management: a broadened view of products and services, channel leadership challenges, alterations in channel struc- ture, and an expanded view of distribution intensity.
The authors also identify issues triggered by these developments, which calls for further research in this field.
She discovers that the phone has a camera option, can of information-empowered customers seeks the fulfillment of be used with various calling plans and long distance providers, needs and wants from multiple independent providers of and is available at several retail locations across the city. Product informa- employee who also recommends useful accessories such as a tion and its availability are facilitated by third parties other than wireless headset and a car charger.
The salesperson further the manufacturer or traditional channel intermediary. She returns home and to post-download service provision, across these multiple chan- places the order online with the long distance service provider. Days later, the cell phone is delivered to her home. Cologne, Germany 5 The preceding vignette is by no means atypical. It is this very pro- Netherlands liferation of the channels used to provide information, deliver, Email: gbruggen rsm.
Conceptual overview of channel multiplicity. It is worth noting the distinction between channel multipli- channel design and management that must occur in response city and multichannel management.
As defined by Neslin et al. Prior related work on multichannel , p.
In this strategy. Specifically, we consider four key implications for individuals across various social networks also play a key role a products and services, b channel leadership, c channel in the process. Manufacturers will need to play a more active structure, and d distribution intensity.
The central thesis is and pro-active role in alternative channels. An increasing num- that changes to channel structure are not necessarily a function ber of companies have become significant contributors to of carefully planned deliberations, but rather, a response to online forums and use Facebook and Twitter to update their market and customer evolution.
We conclude with an outline customers with up-to-date information and respond to informa- of the challenges and opportunities inherent in channel tion requests. In addition to these outlets, manufacturers multiplicity. Furthermore, the entry barriers for new entrants performing channel functions have become much The New Market Realities lower than before.
Online retailers, recommendation sites, and price comparison sites are examples of such new channel Direct Relationships With Empowered Customers members. Advances in information technology have dramatically chan- ged the way customers interact with firms and consequently, the manner in which these firms should design their routes Increasing Fragmentation of the Transaction to markets Wallace, Giese, and Johnson Before the rise Along with the growing movement in firm-to-customer and of the Internet, most companies would market their products customer-to-customer interactions, we are observing an through indirect channels using independent intermediaries increasing fragmentation of the transaction and reorganization such as wholesalers, distributors, and retailers.
Communication of key channel functions over the download lifecycle.
As an would typically take place through mass media such as televi- example, historically, phones were sold through self-service sion advertising and newspaper ads. Customers who needed retail stores or directly through intermediaries or online chan- information could contact companies directly by telephone; nels. However, the rise of smartphones has increased the need however, most communication would occur indirectly through for more education support and tactile handling prior to pur- resellers and channel intermediaries.
These days, channel func- chase. Hence, what is emerging is the creation of more retail tions have become allocated across various members and non- outlets whether they be manufacturer owned or through inter- members of a marketing channel.
As an example, channel result of a web-based multi-vendor search and price compari- members might try to avoid the duplication of channel func- son. Subsequent product support, such as software updates, tions among multiple intermediaries in the channel. Within this structure, the various firms become more customer retention activities.
Although the concept of channel functions is by no means new see Coughlan et al. In each of these stages, the marketing channel plays a operating reality.
As we point out in this section, an immediate role. Customers start with a search for information about prod- and notable consequence of such granularity is that information ucts and services and process what they find.
We now consider the implications ordered and when the order is fulfilled a transaction has taken of this change for product- and channel-related viewpoints and place. Following the transaction, customers may need post- understanding. The intensity with which customers go The rise of the Internet and mobile smartphones has enabled through the various stages of this downloading process depends on firms to establish and maintain more direct relationships with the downloader e.
Manufacturer websites teristics of the product being downloadd e. Within each stage of the downloading process, the available for potential customers. At the same time, custom- customer will need the marketing channel to provide certain ers are frequently interacting with each other through social channel services.
Verhoef, Neslin, and Vroomen find media platforms such as Facebook, Twitter, and online forums. They identify the research-shopper Downloaded from jsr. Research should identify the most channel for search and another for downloads.
We would further effective strategies for dealing with coordination issues e. Similarly, custom- ers may prefer different channels for post-download activities than the channels for predownloading activities. Ideally, marketing channels will be designed in such a way Implications for Channel Design and so as to optimally meet customer requirements, and the chan- Multichannel Management nels that are best at meeting these requirements will emerge as the preferred method for doing so.
In the s, Bucklin Broader View of Products and Marketing Channels proposed four basic channel service outputs: spatial Historically, the purpose of channel design and implementation convenience, waiting time, lot size, and assortment variety; was to reduce transaction costs, exploit contact efficiencies, channels must ensure that customers can obtain information and leverage specialized functions Coughlan et al.
The channel should technologies, changing customer needs and wants, and also deliver the products and information customers actually increased mobility suggests that our view of what a channel want and ideally offer complementary download opportunities.
In this section, we consider the Channels can add value for customers through assortment various formats in which channels might exist and the implica- variety. For each phase in the could potentially represent a channel of distribution, including downloading process, one has to determine the service outputs but not limited to mobile phones, kiosks, and any user- requested by the customers and how important these services generated phenomena such as blogging sites, social networks are.
Next, one needs to determine how the various alternative i. From this, formats such as retailers, brand fans, user groups, and catalogs. This is because multiple channels are often prevalent in fast Following this logic, one can evaluate how well the various changing market environments; if the product market matured available channels perform with respect to the four channel more slowly, the channel structure would have time to adapt to service outputs in each phase of the decision-making process.
Thus, we must rethink not only how channels are between online and offline channels Verhoef, Neslin, and designed, managed, and coordinated but also how products, Vroomen However, within the online category, various pricing, and promotion should be reconfigured.
One of the most platforms are available nowadays e. One can also deter- work externalities i. As an example, America Online ers. By combining these importance scores with the or Google can successfully aggregate thousands of news arti- attractiveness of the various channel alternatives, a preferred cles, stock reports, chat rooms, health tips, horoscopes, and channel per phase in the customer downloading process can be iden- scores for consumption.
While this may seem straightforward, tified. This preferred channel can differ for different downloaders, the difficulty arises for firms who must manage both online and downloading situations, products, and so on Nunes and Cespedes offline distribution channels simultaneously.
An example of Research should more systematically identify the this might be Dow Jones, or Consumer Reports, which must strengths and weaknesses of the various available channels and make content available both online and offline and their pric- configurations across different downloading situations.
Verhoef, and Neslin with similar channel preferences. Bakos and Brynjolfsson provide an analytical frame- Channel multiplicity will require suppliers of products to work for these effects, including how to manage upstream and expend more effort in tracking customer segment preferences downstream competition for such goods, bundling strategies, as they have multiple options for effectively serving these cus- and their effects on competitive strategy, innovation, and mar- tomers.
This development means that manufacturers will need ket dynamics. However, more work is needed that empirically to manage a more diverse portfolio of routes-to-market. On the connected and managed altogether by alternative organizations other hand, this multiple channel approach does appear to be that can perform the function more effectively.
As an example, a stable, long-term equilibrium. However, under a broader view of the support a more coherent and strategic multichannel strategy. How do these patterns change over time ated by an independent firm—or even user generated.
It used understanding of the firm and its products? As an example, to be that travel agents, providers, or firms would provide infor- we might witness consumers engaging in more freeloading mation about hotel accommodations, points of interest, and so across channels of competing firms such as the physical exam- on. However, this information always had the potential to be ination of a book in a Borders store but order placement at somewhat biased, as many of these firms may have arrange- site.
Initially, but over time, they may forego the ments with these points of interest that motivate their informa- retail format altogether and go straight to download at a website. As digital tech- and pictures of their experiences. The fragmentation of channel structures and outsourcing of Another example of the unbundling and total management function ownerships to alternative firms and customer groups of the information unbundling function is WebMD.
If consumers are health care industry. This site tries to educate consumers on no longer dependent on the coordinating channel firm for infor- their health options and the trade-offs associated with their mation provision, or various aspects of the product e.
Google is another example of how information has hotel accommodation, touring schedules, and transportation become unbundled and resourced to a completely different are outsourced to multiple independent firms, then the coordi- company altogether. The search capabilities that it provides nating firm loses a significant level of influence and control is much more efficient, thorough, and less biased than the view- over the consumer experience, as the necessary functions it point of any particular firm.
Historically, the channel might have been com- ments as options that allow the firm to persevere and provide prised of a series of firms, typically chosen, designed, and coor- some semblance of stability in a rapidly changing environment.
If the purpose of the channel is to By viewing channels as bundled options, the firm gains flexi- deliver the right product at the right place and time, and an bility while it explores various directions.
One ble, and part of a larger coherent channel strategy. Since then, implication of this approach is that we should no longer view we have witnessed a partial fulfillment of this prediction.
On the channel according to its ownership i. This represents a sig- discounts and communication efforts; Ansari, Mela, and Neslin nificant departure in perspective from the literature. In the past, ; Thomas and Sullivan ; Venkatesan, Kumar, and we viewed degrees of ownership, vertical integration, and Ravishanker Under this new approach, our perspective vices providers Dutta, Heide, and Bergen and the use of might better be expanded by considering more explicitly the Downloaded from jsr.
Although this configuration is not these outlets affect customer satisfaction as a whole. Historically, the perspec- Finally, since the customer experience and needs are also tive on channels has been that the manufacturer is the critical fragmented, the channel captain becomes whoever has the linchpin, directing, designing, and determining which interme- greatest impact on product value or who is the chief designer diaries to include in their efforts to reach the downstream cus- of the product experience.
Returning to the travel channel tomer. If channel forms are becoming increasingly vacation package, the airline becomes the channel captain and decoupled and spun out to independent firms, this creates an TripAdvisor might then be used to provide additional informa- environment that favors specialist firms e.
Or perhaps, the and narrow operations at the expense of generalists e. However, it also raises the thorny captain. In all of these scenarios, the channel. What happens without a channel leader? In other generalists would depend for adding value Raju and Zhang words, the channel leader becomes occasion-specific and user As an example, in the computer industry, a computer defined.
This represents an important innovation in our per- manufacturer such as Dell or IBM produces the computer that spective of channel leadership and coordination. These intermediaries are dependent on the computer manufacturer for Evolving Versus Planned Channel Structure their existence and role—that is, without a computer, there Another consequence of channel multiplicity is its evolutionary would be nothing to add value to or enhance.
But as we return impact on channel structure. It is appropriate for college students and the examples are interesting and apropos. Stern Anne T. From to she taught at the Graduate School of Business of the University of Rochester as an assistant professor of Economics and Marketing. Since she has been on the Marketing faculty at the Kellogg School of Management at Northwestern University, where she is currently a tenured Associate Professor of Marketing.
Professor Coughlan's teaching, research, and consulting interests lie in the areas of distribution channel management and design, pricing, competitive strategy, and the international applications of these areas. Levy Teaching Award in She is a frequent lecturer in executive programs on distribution and pricing, both at Kellogg and around the world. Huber Engineered Materials.
Stern, and Adel I. El-Ansary of Marketing Channels, 7th edition Prentice-Hall, , a leading textbook and reference work in the area of distribution channel design and management. She has also written many scholarly research articles and her work has been published in journals such as Marketing Science, Management Science, International Journal of Research in Marketing, Journal of Business, and Journal of Marketing.
Professor Coughlan served on the Board of Trustees of The Kent Funds a Michigan-based bank proprietary mutual fund family from and has served since on the board of directors of The Care of Trees, a national tree care company in the United States. She has been a member of the Advisory Board of Channel Velocity, a reverse logistics company, since September