7

Channel management

Key concepts covered in this chapter:

  • Numeric distribution, ACV distribution, and PCV distribution
  • Facings and share of shelf
  • Out-of-stock and service levels
  • Inventory turns
  • Markdowns
  • Gross margin return on inventory investment (GMROII)
  • Direct product profitability (DPP)
  • Online distribution metrics
  • Combining search and distribution
  • Understanding channel dependencies

Introduction

This chapter discusses measures of the direct effect of push marketing, including increased availability of the brand and products.

If the channel is brick-and-mortar retail, the common measures are Numeric Distribution, ACV, and PCV. These three metrics are measures of the availability enjoyed by the brand or individual products. Numeric Distribution ...

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