Introduction
Retail marketing has always been a field of constantly changing and evolving practical approaches, practices, and methods. In the last decade, it has experienced a peak of conceptual and meta innovations, and multi- and omni-channel marketing strategies are just one example. Understanding the long-term planning of new intertwined market channel systems and knowing how to integrate are now necessary for one to make profits in the business sphere. This paper will explore how entrepreneurs develop their channel networks using new multi- and omni-models.
Integration Model
New marketing models provide versatility and many opportunities for business people, but integrating them is complex and demanding. By the end of the decade, researchers and academicians managed to identify the sequence of actions by which businesses integrate discussed new formats of channels. According to Cao (2019), it has four stages called silo stage, minimum integration, moderate integration, and full integration. These are classified by time frame, the size of the business entity, and the resources available.
Silo Stage
The first one is when the firm starts to multiply and diversify its retail operations. As Cao (2019) notes, the company begins to “sell goods or services through more than one channel, but operate these channels independently” (p. 54).
Minimum Integration
When the firm achieves this objective and masters all related practices and procedures, the second phase starts. During minimum integration, the company optimizes “established channels collaboratively, focusing on activities linked to marketing communication with consumers” (Cao, 2019, p. 54).
Moderate Integration
Optimization continues in the third stage, moderate integration, but the focus shifts to “activities linked to consumer transactions” (Cao, 2019, p. 54).
Full Integration
In the final phase, the optimization of the retail network and the adoption and integration of multi- and omni-market channels are completed. The company can now provide and maintain “consumers’ seamless shopping experience” (Cao, 2019, p. 54). All new formats, models, and policies are adapted and polished in the business organization’s changed and improved operating structure.
On the Pillars of Planning
Planning significantly defines whether the integration will go smoothly or is problematic and whether the measures taken will be productive or ineffective. When one wants to transform their manufacturing firm’s marketing channels into multi- or omni-ones, they must consider several critical factors and nuances of business integration. One must conduct a comprehensive preliminary assessment of what the discussed innovation will bring to their organization and what it will take away.
As Gao et al. (2019) note, “firms should consider the pros and cons before implementing a multichannel integration strategy” (p. 1087). When developing a future strategy, a team of responsible leaders and managers should also take into account the characteristics of their firm, the attitudes and qualities of their customer base, and the parameters of the industry in which they operate. According to Kolbe et al. (2022), basing the plan around a company’s innovative capability can be a good solution. This decision can increase the potential profits from the newly improved channels.
Conclusion
This essay is about the relatively new retail methods that are multi- and omni-market channels. It was explained how most businesses integrate these into their operating structure through a four-stage process. Moreover, the basics and nuances of planning the implementation of innovative integration initiatives were listed and discussed. As noted above, manufacturers and entrepreneurs should consider the resources of their firms, the industry environment, and the behavior of their customers.
References
Cao, L. (2019). Implementation of omnichannel strategy in the US retail: Evolutionary approach. In W. Piotrowitcz and R. Cuthbertson (Eds.), Exploring omnichannel retailing: Common expectations and diverse realities (pp. 47-69). Springer.
Gao, L., Melero, I., & Sese, F. J. (2020). Multichannel integration along the customer journey: A systematic review and research agenda. The Service Industries Journal, 40, 1087-1118. Web.
Kolbe, D., Calderon, H., & Frasquet, M. (2022). Multichannel integration through innovation capability in manufacturing SMEs and its impact on performance. Journal of Business & Industrial Marketing, 37(1), 115-127. Web.