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Continued inflation at a high rate for some time seems to be inescapable. In this situation management must bring ever closer attention to bear on the issue of cost control, and particularly cost‐benefit analyses of their operations. One activity likely to come under close scrutiny is that of distribution. For some time physical distribution has been subject to rigorous examination in terms of “total” costs and “system/cost benefits”. By expanding the analysis to include channel considerations it is possible to consider all influences within a distributive process. This article therefore seeks to determine an approach to channel management which considers all the functions, activities and institutions comprising a distribution channel.

Market selection in business‐to‐business (B2B) market transactions is more complex than the one‐step market segmentation decision in consumer markets. This article models market selection and procurement decision‐making in B2B markets as a five‐step procedure involving choice of vertical and horizontal markets. Vertical market choice decisions are shown to encompass choice of output markets, value adding that the organization will perform internally (the “make” decision), and input markets (the “buy” decision). Horizontal market choice decisions are shown to encompass choice of macro segments in the output market and micro segments within each of the macro segments selected. Explores how we can draw on theoretical developments in industrial organization economics to help make these strategic decisions. The article suggests how to set the boundaries of the organization and determine what markets to serve, what to make, and what to buy with the help of transaction cost and market structure analysis.

To provide a practical overview of strategic thinking concepts and practices for marketing and other managers that can help them improve their strategy making.

The raw materials of strategic thinking are illustrated by case studies and examples from a range of industries to aid managers in their successful application. The principles and techniques are presented in four categories: thinking strategies, strategic decision making, strategic competencies and visualizing strategy.

Offers marketers an approach for moving beyond the automatic application of traditional strategic frameworks to identify and to achieve breakthrough strategies. Recognizes the real power of strategic thinking as a source of competitive advantage.

The principles and practices proposed represent a practical system for enhancing strategic promise and performance, as well as for reducing the risks of strategic failure.

The marketing discipline is long overdue in applying the same attention and rigor to strategic thinking that it applies to strategic planning and this paper offers managers practical help in identifying and developing strategic thinking competencies.

Historically goods and services have been distributed through networks in which loosely aligned firms have bargained at arm's length, negotiated aggressively over price and other conditions of sale, and otherwise behaved autonomously. However, planned vertical marketing systems are rapidly displacing these conventional marketing channels as the dominant mode of distribution in the American economy. These vertical marketing systems tend to be professionally managed, pre‐planned, rationalised, and capital intensive. According to McCammon, over 60 per cent of total retail sales are through firms affiliated with vertical marketing systems.

This paper aims to investigate the curvilinear effects of firms’ market learning on radical innovation and the moderation effects of the focal firms’ horizontal ties and vertical ties.

This study uses regression analysis with the survey data from 303 Chinese firms.

Explorative/exploitative market learning has an inverted U-shaped/U-shaped effect on radical innovation. The effects of explorative market learning on radical innovation increase when firms have strong horizontal ties, but decrease when firms have strong vertical ties. The opposite is true for the effects of exploitative market learning.

This study uses unilateral data to examine the moderation effects of the focal firms’ vertical and horizontal ties on the market learning-radical innovation links. Future research that conducted in the dyadic-paradigm would be preferable to test the generalizability of this research and address the potential changes.

The value of the current study centers on its integrated framework that incorporates organizational learning theory and the social network perspective to account for radical innovation. The integrative view helps us to interpret the curvilinear effects of market learning on radical innovation and outlines the moderation mechanisms of horizontal ties and vertical ties.

Markowitz’s mean‐variance approach is used to identify the returns to vertical investment in the pork industry. In addition to previous efforts, this paper considers not only returns to stock ownership, but uses operating return on investment in pork slaughter and hog production to evaluate the impacts of vertical investment within the industry segment. Results suggest there are indeed diversification incentives for vertical investment in the pork industry. However, results do differ for vertical direct investment versus investment through stock ownership.

Channels of distribution are basic to the marketing strategies of firms, and have been shown to be a key element in the marketing mix. The author here undertakes a comprehensive review of channels literature, primarily to identify and assess the adequacy of the various mainstream conceptual schemes which have emerged. Economic‐based arguments have largely been at the core of channels literature, although these have been partially offset by the concepts of the organisational and behavioural schools. The author concludes that whereas every conceptual approach reviewed has added something to our cumulative knowledge, no single approach has yet reached a point of adequate conceptualisation based on his own basic criteria. As yet channels literature is mainly descriptive, and has virtually no predictive power.

Considers the shift of marketing functions from the perspective of the wholesaler rather than from the traditional point of view of the manufacturer or retailer. Examines the vertical integration of marketing functions by manufacturers and the use of synergistic strategies which could cause a reallocation of marketing functions among wholesalers and manufacturers. Discusses the potential new roles of the small industrial distributor in an ever‐changing marketing environment characterized by functional shiftability.

This monograph progresses from a consideration of definitional issues to the development of a conceptual model for marketing‐logistics interaction and finally to a discussion of the issues of implementation of the model within the context of marketing strategy. Thus, following an introduction, Part II begins with definition of the field and examines the position of physical distribution in relation to marketing. Part III discusses the relationship of physical distribution and macro‐marketing, and is thus concerned about the social, aggregative goals of logistics systems, including the costs of distribution. Part IV continues this argument, examining specifically the influence of physical distribution on channel structure. Part V then focuses on the assumptions underlying the customer service function, asking how physical distribution can influence final demand in the market place. Part VI presents a conceptual model of marketing‐logistics demand stimulation. The operational issues concerned with its implementation are shown in Part VII; and a summary of the relevant points is presented in Part VIII. The concern has been not with presenting either new computational models nor empirical data but with presenting a new perspective on the marketing‐logistics interface. There is a need to reduce the barriers between these fields and to present more useful ways for co‐operation.

The purpose of this paper is to illustrate the forms of change that horizontal and vertical mergers and acquisitions (M & As) may evoke in acquired firms’ customer networks. M & As have increasingly become a dominant mechanistic growth path,pursued relentlessly by companies with varying attributes. However,acquiring a firm does not automatically imply that the market position of the acquired firm and its networks can be taken over,as conventionally held.

The approach takes the form of two qualitative interview-based case illustrations.

The illustrative empirical cases within the context of this study suggest that customer network changes may be rapid and/or radical,and gradual,depending on the specific acquisition type,context and managerial actions following the acquisition. Moreover,the visual simplicity of the network drawing in the post-acquisition network environment of a vertical acquisition type is not equivalent to lesser complexity of managing within the network. Rather,it shows a greater complexity as the M & A induces more direct customer relationships to manage and be managed. The study also shows that connected network changes may cause a revision of a specific industry’s business rules,and the management of these changes is critical for acquisition success.

While the two illustrative M & A cases are deemed practically significant in strategic and social terms within their industry and country settings,further research is required to establish the generalizability of the findings to wider industry and geographical contexts.

This paper contributes to the discussion on the important role of the business network approach in elaborating the understanding of a strategic management event,particularly M & A.