Table of Contents

About the Authors



Part I: The Bedrock of Channel Functions, Power, and Conflict

Chapter 1 Distribution Channels Today

1.1 Introduction

1.2 What Is New: Radical Changes in the Navigation of Distribution Channels

1.3 The Road Ahead

Chapter 2: Push, Pull, and Total Channel Performance

2.1 Introduction

2.2 An Organizing Framework Illustrated with Natura’s Distribution Channel

2.3 Push-Pull Inputs and Downstream Effects in PepsiCo’s Channel

2.4 Push and Pull for Services and Digital Channels

2.5 Beneficial and Harmful Feedback Loops in the Push-Pull System

Chapter 3: Root Causes of Channel Conflict

3.1 Introduction

3.2 Uncoordinated Pricing and Selling Effort

3.3 Over- and Under-Distribution

3.4 Division of Work and Pay: Who Sold That?

3.5 Adapting to Change: Where Does the Future Lie?

Chapter 4: Middlemen in Today’s Channel Ecosystem and Their Functions

4.1 Introduction

4.2 Brick-and-Mortar Intermediaries

4.3 New Digital Intermediaries

4.4 Support Service Providers

4.5 What’s Different about Today’s Channel Functions

Chapter 5: The Sources and Indicators of Power in the Channel

5.1 Introduction

5.2 Power in the Channel and Its Sources

5.3 Consumer Search Loyalty: The Ultimate Source of Power

5.4 Economic Indicators of Market Power

Chapter 6: Using Power Without Using It Up

6.1 Introduction

6.2 Applying Power in Channel Relationships

6.3 Investments and Safeguards: Efficient Partnership or Power Struggle?

6.4 The Challenge of Preserving Power

6.5 Vertical Restraints: Welfare Enhancing or Anticompetitive?

Part II: Metrics, Tools, and Frameworks for Getting the Right Distribution

Chapter 7: Metrics for Intensity and Depth of Distribution Coverage

7.1 Introduction

7.2 A Framework for Measuring Distribution and Matching It to Demand

7.3 Measuring Stocking Outlet Findability: Metrics for Intensity of Distribution Coverage

7.4 Metrics for Distribution Depth

Appendix: An Example to Calculate Basic Distribution Metrics

Chapter 8: What Are You Managing Towards? Distribution Performance Metrics

8.1 Introduction

8.2 A Hierarchy of Performance Metrics

Chapter 9: The Challenge of Optimizing Distribution Breadth

9.1 Introduction

9.2 Classic Categorizations of Products and Distribution Coverage

9.3 Consumer Search Loyalty and Distribution Elasticity

9.4 The Difficulties of Optimizing Distribution Coverage

Chapter 10: Using Velocity Graphs to Guide Sustainable Distribution Coverage

10.1 Introduction

10.2 The Concept of a Velocity Graph

10.3 Insights from Velocity Graphs: An Illustration with Laundry Detergents

10.4 Velocity, State Franchise Laws, and Over-Distribution of U.S. Auto Makers

Chapter 11: Augmenting the Distribution Mix: Digital Channels and Own Bricks and Clicks

11.1 Introduction

11.2 A Variety of Own-Stores to Augment Distribution by Independent Resellers

11.3 The Inevitability and Challenge of Online Distribution

11.4 Be Clear about “Why” to Decide “How” to Distribute Online

Chapter 12: Three Cases on Online Distribution

12.1 Introduction

12.2 The Saga of Brooks Running and

12.3 Aggregation: Work Worth the Pay in the Online Travel Channel?

12.4 Building a Viable Revenue Model Online: News, Music, and TV

Part III: Aligning the Marketing Mix to Manage Distribution

Chapter 13: Using the Product Line to Manage Multiple Channels

13.1 Introduction

13.2 Channel-Motivated Expansion of SKUs, Brands, and Categories

13.3 Portfolios of SKUs for a Portfolio of Channels

13.4 Portfolios of Brands to Protect Equity and Mitigate Channel Conflict

13.5 Expanding to Support an Exclusive or Direct Channel

13.6 Cautions At All Three Levels of Product Line Expansion

Chapter 14: Harnessing the Power of Price and Price Promotions

14.1 Introduction

14.2 Why One “Everyday” Price to Resellers Is Usually Not a Good Idea

14.3 The Many Varieties of Trade Promotions

14.4 The Challenge of Assessing the Costs and Profitability of Trade Promotion

Appendix: Trade Promotion, Retail Price Discrimination, and Promotion “Cost”: A Numerical Example

Chapter 15: Managing Prices and Incentives Across Channels

15.1 Introduction

15.2 The Goals and Challenges of Channel Incentives

15.3 How to Maintain Reseller Prices

15.4 Decide Whether to Differentiate or Harmonize Across Multiple Channels

15.5 Challenges Even When You Control Retail Price Directly

Appendix: Excerpts from Mizuno’s MAP Policy

Chapter 16: Summary: Dashboards and Principles for Managing New Directions in Distribution

16.1 Pulling (and Pushing) It All Together

16.2 Distribution Dashboards

16.3 The Magical Number Seven Plus or Minus Two Nuggets of Wisdom

16.4 Who Will Be the Masters of Multi-Channel Distribution?