In-Store Media and Channel Management

In this paper, we study the interesting and complicated effects of retailer in-store media on distribution channel relationships. With the help of advanced technology, retailers can open in-store media in their stores and allow manufacturers to advertise through the instore media. We show that opening in-store media is a strategic decision for a retailer, and a retailer may strategically subsidize manufacturers on their advertising through instore media to better coordinate the channel. Even when in-store media is more effective than commercial media (i.e., radio, TV, newspaper, etc.), a retailer may still charge an advertising rate lower than commercial media does. We also show that the benefit of instore media to a retailer can be a U-shaped curve of manufacturer bargaining power, and a retailer may introduce in-store media only when manufacturer bargaining power is either very high or very low, but not intermediate. With manufacturer competition, a retailer can strategically use in-store media to ration excessive advertising between manufacturers, achieving better channel coordination. When manufacturers are asymmetric with pre-advertising brand awareness, a retailer has incentive to subsidize manufacturers whose brand awareness is higher. We also find that retailer in-store media can benefit social welfare even when in-store media is less effective than commercial media. However, if in-store media effectiveness is very low, a retailer may introduce instore media for its own benefit with the sacrifice on social welfare.in-store media; advertising; distribution channel; channel coordination; retailing

The Future of Retail Operations

Retailing consists of all the activities associated with the selling of goods to the final consumer. In this article, we review the research on retail operations published in Manufacturing & Service Operations Research (M&SOM) since 1999. We then discuss the current retail landscape and the new research directions it offers, in which M&SOM can play a prominent role

Continuing Concentration in Food Industries Globally: Strategic Challenges to an Unstable Status Quo

Industrial Organization,

Think Local-Act Local: Is It Time to Slow Down the Accelerated Move to Global Marketing?

In view of the accelerated move of great corporations towards global marketing, the strategic changes of such companies raise interesting questions. Is marketing globalization reaching its limits after years of implementation? Is it time for companies to rethink their strategies and move back, like Coca-Cola, to a multi-domestic marketing approach?Global Marketing, Multi-Domestic Marketing Approach, Brand Equity, Drawbacks of Marketing Globalization, Coca-Cola

Dynamic Explanations of Industry Structure and Performance

Industrial Organization,

Innovation in Marketing Channels

In more recent years, the context of globalization in which market channel structures and strategies are developing is bringing to a more complex concept of marketing channels, with disintermediation or reintermediation, multichanneling and new roles/specializations that are emerging as new issues.In this context, innovation in marketing channels becomes a complex, multiorganizational, multidisciplinary activity that requires collaboration and interactions across various entities within the supply chain network. In recent years, the innovation processes in marketing channels have occurred with high intensity and speed, especially following the changes spurred by technology that allowed the adoption of more efficient organizational solutions.Retail; Channel Structure; Innovation in Marketing Channels; Retail Technological Innovation; Global Markets

Understanding the key drivers of and technology related issues associated with going multi-channel

A multi-channel retail strategy is viewed by many academics and practitioners to be the success model for most retailers. Yet, while there are many drivers of, and advantages related to, using multiple channels to sell products and services to customers likewise there are numerous technology-related issues. Despite this, the multi-channel retailing literature provides little empirical insight into these technology-related constraints. Moreover, there is a lack of multi-channel retailing research which explores the impetuses behind retailers adding new channels to go multi-channel, especially in the context of the UK retail sector. To contribute to gaps in the literature this study utilises a case study research strategy to examine the key motivations behind, and technology-related issues associated with, multi-channel retail strategic implementation, in the setting of the UK retail sector. Three UK based retailers (Boots, Screwfix and Bettys) are used which have different approaches to, and are at different stages of, adopting a multi-channel retail strategy. In addition, they have different backgrounds such as size, product range, sector and type. Consequently, the use of these three different retailers enables exploration of the drivers behind, and technological problems associated with, implementing a multi-channel retail strategy in the context of store and Internet/catalogue retailers. Case analysis reveals novel themes which are not identified, or not clearly recognised, in the literature. These include that key drivers behind retailers going multi-channel are to increase sales, and, meet the needs of the multi-channel shopper. Indeed, customers want to shop via multiple channels and therefore, these retailers have no choice but to go multi-channel if they are to meet customer needs. However, while at a strategic level these motivations were similar across the case study retailers, they also differed. For example, Screwfix added a store channel to enable customers to purchase products and receive them instantly. In contrast, Boots added an Internet channel to drive footfall in-store and increase store sales. Boots were also adding an Internet channel since it provided them with a marketing channel, which, going forward, was likely to replace other communications channels. The findings from this study also reveal that retailers encounter major technology-related issues when adding new, and using multiple, channels. These problems stem from the need to re-design existing logistics and IT infrastructure to offer a seamless, integrated offer to the customer. For instance, to leverage the brand and marketing mix consistently across all channels, and, to implement ‘click and collect’ (i.e. where customers purchase a product in one channel and collect it in another). Also, due to the need to use innovative marketing techniques, in particular, social media. Importantly, this study highlights that these technology-related multi-channel retailing constraints often have a ‘softer’ side. Technology-related problems are frequently intertwined with cultural, engagement and financial/staff resource related issues. This suggests a need for retailers to find entwined solutions to both technology and non- technology related issues to effectively implement a multi-channel retail strategy

Continuing Concentration in the U.S.: Strategic Challenges to an Unstable Status Quo

Industrial Organization,

Cultural aspects of multi-channel customer management: A UK case study

Channel management is one CRM systems component much influenced by the behaviour of customers in relation to its implementation and use. The consumers’ behaviours, preferences, perceptions and expectations are crucial for the implementation and use of channel management. Customers’ contact with the organization’s multi-channels can occur at several touch points throughout the customer lifecycle. Customers’ behaviours may be differentiated according to the individual or micro level, but it might also differ at an ecological or macro level of analysis (Ramaseshan et al., 2006). In this paper the authors have conducted a case study in the UK to analyze customers’ behaviours at a macro level and customers channel choices, through out the customer lifecycle. The authors have used a Structurational Analysis model (Ali and Brooks, 2008) to identify the cultural factors (Ali, et al. 2008a) that influence multi-channel customer management in the UK

MODIS information, data and control system (MIDACS) level 2 functional requirements

The MODIS Information, Data and Control System (MIDACS) Level 2 Functional Requirements Document establishes the functional requirements for MIDACS and provides a basis for the mutual understanding between the users and the designers of the EosDIS, including the requirements, operating environment, external interfaces, and development plan. In defining the requirements and scope of the system, this document describes how MIDACS will operate as an element of the EOS within the EosDIS environment. This version of the Level 2 Requirements Document follows an earlier release of a preliminary draft version. The sections on functional and performance requirements do not yet fully represent the requirements of the data system needed to achieve the scientific objectives of the MODIS instruments and science teams. Indeed, the team members have not yet been selected and the team has not yet been formed; however, it has been possible to identify many relevant requirements based on the present concept of EosDIS and through interviews and meetings with key members of the scientific community. These requirements have been grouped by functional component of the data system, and by function within each component. These requirements have been merged with the complete set of Level 1 and Level 2 context diagrams, data flow diagrams, and data dictionary