Using physical distribution strategy for better channel management

Physical Distribution (PD) while given a great deal of attention in the marketing literature during the past decade, has not been examined explicitly in terms of how it interfaces with channel management. Yet an understanding of PD-channel management interfaces is necessary if the marketer is to play a role in shaping the firm's PD strategy so that it is more likely to foster channel member cooperation rather than conflict. PD interfaces with channel management in at least four areas: (1) defining channel member service standards, (2) making sure a proposed PD program meets these standards, (3) the selling of the program to the channel members, and (4) monitoring the program once instituted to determine if it contributes to fostering channel member cooperation. Regardless of how the manufacturer treats the PD function from the stand-point of his own internal organization structure, there is no escaping these PD-channel management interfaces. Consequently, the marketer who is concerned with the channels aspects of the manufacturer's overall marketing strategy has an important role to play in influencing the firm's PD strategy so that it helps to enhance channel member cooperation.     

An investigation of path-goal leadership theory and its impact on intrachannel conflict and satisfaction

This path-analytic study examined the relationships among channel members’ perceptions of dimensions representing channel leader behavior, channel conflict and satisfaction. In doing so, the path-goal theory of leadership is tested in a franchise channel of distribution. The results indicate that both the consideration and the initiating structure dimensions of leader behavior significantly influence franchisees’ satisfaction with the franchise arrangement. As defined in the theory, these relationships were found to be mediated by the existing level of conflict being experienced by franchisees. Causal linkages are also found between intrachannel conflict and satisfaction. Specific recommendations are provided to franchisors and other channel leaders.     

Sales promotions and channel coordination

Consumer sales promotions are usually the result of the decisions of two marketing channel parties, the manufacturer and the retailer. In making these decisions, each party normally follows its own interest: i.e. maximizes its own profit. Unfortunately, this results in a suboptimal outcome for the channel as a whole. Independent profit maximization by channel parties leads to a lack of channel coordination with the implication of leaving money on the table. This may well contribute to the notoriously low profitability of sales promotions. This paper first shows analytically why the suboptimality occurs, and then presents an empirical demonstration, using a unique dataset from an Efficient Consumer Response (ECR) project; ECR is a movement in which parties work together to optimize the distribution channel). In this dataset, actual profit is only a small fraction of potential profit, implying that there is a large degree of suboptimality. It is important that (1) channel parties are aware of this suboptimality; and (2) that they have tools to deal with it. Solutions to the channel coordination problem should ensure that the goals of the individual channel parties are aligned with the goals of the channel as a whole. The paper proposes one particular agreement for this purpose, called proportional discount sharing. Application to the ECR data shows a win-win result for both the manufacturer and the retailer. Recognition of the channel coordination problem by the manufacturer and the retailer is the necessary starting point for agreeing on a way of solving it in a win-win fashion.     

Power,conflict, control,and the application of contingency theory in marketing channels

The confusing, and often contradictory, implications for channel strategy emerging from existing theories and empirical studies of power, conflict, and control in marketing channels are discussed. A contingency theory of organizational structure is integrated with propositions concerning the effects of conflict level of channel efficiency to illustrate a procedure for closing the action epistemic gap. Propositions derived from this synthesis of existing theories are presented for future testing.     

微观视角下的零供冲突及其解决对策探讨

解决零供冲突对理顺零售商与供应商的关系、完善供应链管理、维护零供双方以及消费者的利益有着重要的现实意义。零供冲突具体表现为低、中、高三个层次,高层次营销领域内的冲突才是零供冲突最终的表现形式和真正的发展趋势。零供冲突产生的原因主要包括零售商牢牢掌控零售终端,供应商在销售渠道建设方面力不从心、产品缺乏差异性、长期“寄人篱下”并利用零售商卖场“做广告”以及品类管理与品牌管理所产生的冲突等方面。供应商应加强产品创新、以品牌力量为导向强化市场推广、组成联盟对抗零售商、自建销售渠道摆脱对零售商的依赖以及与零售商共同商定合理的供应链利益分配比例,有效化解零供冲突。     

An examination of the moderating effect of channel member firm size on perceptions of preferred channel linkages

The purpose of this study was to empirically test a model of channel member preferability status. The channel linkage examined was the food manufacturer—food broker interface. The results of the study suggest that the preferability status of a food manufacturer as perceived by a food broker is a function of manufacturer coercive and noncoercive power, food broker organizational role stress, and food broker performance. The findings also suggest that some of the relationships are moderated by the size of the respondent's firm. Both authors contributed equally in this study.     

Situation variation in consumers’ media channel consideration

In this article, the authors investigate consumers’ consideration of media channels during different usage situations. They develop a model that explains consumers’ media channel consideration as a function of the media channel’s perceived benefits. In addition, they hypothesize that the usage situation affects consumers’ media channel consideration and that situation-based benefit requirements moderate the effect of the benefits on their channel consideration. The authors test the hypothesized relationships using survey data from 341 consumers regarding their consideration of 12 different media channels used by manufacturers to communicate product information across three product-related usage situations. The results of the analyses support the proposed model structure and confirm the expected relationships among perceived media channel benefits, usage situations, media channel requirements, and consumers’ media channel consideration. Sonja Wendel (s.wendel@mw.unimaas.nl) is currently a Ph.D. candidate in the Department of Marketing at Maastricht University, the Netherlands. Her research interests lie in the area of consumer behavior, services marketing, and communications. She is particularly interested in exploring manufacturer-consumer communications. Benedict G. C. Dellaert (b.dellaert@mw.unimaas.nl) is Meteor Research Chair and a professor in the Department of Marketing at Maastricht University, the Netherlands. His research interests are in consumer decision making, consumer-producer interaction, customization and personalization, retailing, and tourism. His work has appeared in journals such as theInternational Journal of Research in Marketing, theJournal of Interactive Marketing, theJournal of Marketing Research, andMarketing Letters.     

Realities of channel dynamics: A wholesaling example

Using the formation of wholesaling institutions as an example, this paper argues that while perhaps conforming to established models of channel formation, channel structure results primarily from short-term and narrowly focused decision making. The paper describes a six step sequence that an evolving merchant wholesaler can be expected to pass through, each step characterized by immediate and short-term concerns.     

农产品流通渠道冲突对农户收入的影响研究——基于红壳鸡蛋流通渠道的案例分析

近年国内学界从多个视角对农产品渠道交易关系、成本与效率等问题进行了广泛研究,但对现实中普遍存在并导致农产品流通绩效低下的渠道冲突问题却鲜有关注。鸡蛋的流通环节多且效率低,渠道关系不稳定,因而对其流通渠道冲突的分析能较好地反映农产品流通中普遍存在的渠道冲突问题。对河南省焦作市红壳鸡蛋流通渠道冲突路径的深入研究表明：渠道冲突已严重影响了养殖户收入的增长,而信息不对称和农产品流通渠道权力的严重失衡是导致这一现象的关键原因。为此,需要对渠道冲突问题进行综合治理。     

The structure of marketing channel relationships

Distribution channel research has been advanced in recent years by contributions based on the political economy paradigm, transaction cost analysis, and relationship marketing. Drawing on these bodies of thought, we propose a new conceptualization of the structure of marketing channel relationships. Relationship structure is defined in terms of decision-making structure and operational integration. The proposed model of channel structure antecedents and consequences is consistent with the major research paradigms but extends beyond simple categorical assemblages of constructs to provide an ordered set of relationships based on theory and empirical research. This conceptualization reconciles some apparent contradictions in the literature and provides a clear focus for structure, process, and performance research in channels. He received his Ph.D. in marketing from Louisiana State University. He has published in the areas of marketing channels, retailing, and logistics. His work has appeared in theJournal of Marketing Research, Journal of Marketing, Journal of Retailing, Journal of Business Research, Journal of Marketing Channels, International Journal of Physical Distribution and Materials Management, Journal of Marketing Education, and others. He served as the managing director of public relations with the Federal Express Corporation before entering the Ph.D. program at Alabama. He holds a B.B.A. in accountancy from the University of Mississippi and an M.A. in marketing from the University of Alabama.     

Improving marketing channel control through power and exchange

Effective channel management control is necessary to marketing planning. The flow of power and exchange in distribution systems has received extensive attention in the literature in recent years, however, internal structuring patterns precipitating these interactions have received cursory attention. This paper presents an initial conceptualization of a social systems model which illustrates why power phenomena exist and how these phenomena flow through role interactions among members of a channel of distribution. Implications for managerial action are presented in which managers utilize sources of power which have the greatest possibility of achieving control.     

成-渝-筑-邕经济带物流通道能力分析

按照点-轴空间结构系统的特征,以四川、重庆、贵州和广西四省区市的成、渝、筑、邕四个城市为节点构建成-渝-筑-邕经济带,是在西部大开发中,继成-渝经济带之后的又一具有巨大发展潜力的区域经济布局,特别对我国西南地区的开发建设具有重要的战略意义.成-渝-筑-邕经济带物流通道能力在西部地区具有一定的优势,但是,四川、重庆、贵州和广西四省区市以至整个西南地区现有的物流通道能力还不足以承载成-渝-筑-邕经济带的战略意义,成-渝-筑-邕经济带的物流通道能力建设任重道远.     

The nature of power in a marketing channel

This paper empirically assesses the extent to which power in a marketing channel dyad is issue-specific or pervasive. Additionally, the paper investigates the extent to which specific power sources effect single or multiple areas of power. The dyad studied is the wholesaler-food broker interface in the marketing channel for grocery products. Results indicate that power is limited in scope, being more issue-specific than pervasive. Additionally, some specific sources of power were found to create power in multiple areas, while others created power in but one area.     

The impact of electronic technology upon the marketing channel

Teleshopping and other forms of electronic retailing promise to have tremendous impact upon the field of retailing. With respect to the impact of this emerging technology upon the channel structure it would seem that the channel members are “retreating” relative to the channel positions. That is, consumers have retreated to the retailer level where they have assumed many of the retailer functions; retailers have moved back to the wholesaler or supplier level; distributors have assumed some of the manufacturer initiative with respect to produc specification and design; and manufactures have retreated to the subcontractor or component supplier level.     

零售商占优的供需博弈及对策

当今市场是买方市场,在零售商控制终端市场,而供应商又没有完善销售渠道的情况下,供应商的自主权被大大削弱。零售商凭借其强大的市场优势对供应商漫天要价,导致双方的冲突不断。为避免冲突,实现各自利益最大化,需要供应商和零售商共同努力。即:零售商需认清利润分配的最佳比例;双方应“互不侵犯”;供应商应不断研发新产品,让零售商“不得不卖”;规范零售商的并购行为。     

An analysis of inter-unit control in channel systems

Control within a channel can be effected by either wholly- or quasi-integrating the system. The degree of control exercised can range from a maximum to a minimum level, with each extreme along the continuum offering a unique set of relative advantages. It is contended that the level of control practiced should be determined by an examination of the environmental factors that prevail in a given situation. For the most part, wholly-integrated systems have emerged to satisfy those environments which call for maximum control. However, there appear to be numerous opportunities for more aggressive application of quasi-integration. The overall success of a channel, in terms of profit and/or stability it can return to its members, may very well depend on a process of (integrated) coordinated action. (Stern, 1965)     

Control-based channel governance and relative dependence

Control and governance theories recognize that exchange partners are subject to two general forms of control, the unilateral authority of one firm and bilateral expectations extending from their social bond. In this way, a supplier both exerts unilateral, authority-based controls and is subject to socially-based, bilateral controls as it attempts to manage its brand successfully through reseller channels. Such control is being challenged by suppliers’ growing relative dependence on increasingly dominant resellers in many industries. Yet the impact of supplier relative dependence on the efficacy of control-based governance in the supplier’s channel is not well understood. To address this gap, we specify and test a control model moderated by relative dependence involving the conceptualization and measurement of governance at the level of specific control processes: incenting, monitoring, and enforcing. Our empirical findings show relative dependence undercuts the effectiveness of certain unilateral and bilateral control processes while enhancing the effectiveness of others, largely supporting our dual suppositions that each control process operates through a specialized behavioral mechanism and that these underlying mechanisms are differentially impacted by relative dependence. We offer implications of these findings for managers and identify our contributions to channel theory and research.     

External and internal supplier influences: Buyer perceptions of channel outcomes

External and internal influences on channel outcomes are examined. Research hypotheses are presented on main and interaction effects of supplier relative market position and internal influence measures with respect to buyer perceptions of channel outcomes. Data from dealers (N=324) in the office systems and furniture industry were used to test the proposed relationships. Among the findings is that the effects of power generated from conditions outside the channel dyad and the use of coercive influence strategies account for a significant share of the variance in dealers’ perceptions of control. Implications and suggestions for future research are provided. She received her Ph.D. from the University of Alabama. Her research interests include buyer-seller relationships and channel strategy. She has published in theJournal of Marketing, Journal of Retailing, Journal of Personal Selling and Sales Management, Marketing Letters, and other journals. She received her Ph.D. from the University of Cincinnati. Her fields of interest include leadership, mentorship, and management development. She has published in theJournal of Applied Psychology, Industrial Relations, Journal of Organizational Behavior, Educational and Psychological Measurement, and other journals.     

A taxonomy of control mechanisms and effects on channel cooperation in China

This study identifies variations of contractual and relational control mechanisms used in governing channel relationships and explores how such variations are related to channel cooperation. Building on the loose coupling logic, assuming that control and cooperation coexist in any loosely structured partnership, we develop a taxonomy that illustrates four metaphorical situations, each respectively indicating a varying degree of control and related cooperative behaviors, in buyer-supplier relationships. We use matched manufacturer-distributor data from China to test theorized configurations through cluster analysis. The results validate the matrix of control mechanisms we proposed and confirm a systematic configuration between each metaphorical situation in the control taxonomy and corresponding cooperative behaviors in commitment, information sharing, compliance to power execution, and dependence continuity.