ABSTRACT
Chapter 2 reviews omni-channel and channel basics. This chapter discusses the benefits of marketing channels for upstream and downstream channel members, the key functions marketing channels perform, and how to audit marketing channels and omni-channels in particular. It defines the generic channel functions that characterize costly and value-added channel activities. The chapter explains the channel benefits for downstream channel members, including search facilitation and sorting, and the benefits for upstream channel members, including routinization of transactions and fewer contacts. It introduces the efficiency template and outlines how it can help codify channel function performance and discusses the role of channel function allocation in designing a zero-based channel. The chapter covers topics such as channel function analysis within a channel audit process and the role of the equity principle in allocation of profits across channel members. It outlines how to define service and cost gaps and how to perform a gap analysis using service and gap analysis templates. The chapter closes with a focus on channel audits in omni-channel environments.
