Distribution Management Outline: II. Marketing Channels Concepts

DISTRIBUTION MANAGEMENT
OUTLINE
II. Marketing Channels Concepts
1. The Marketing Channel
2. Contactual Efficiency
3. Definition of Distribution Management
4. The Nature of Distribution Channel
5. Distribution Channel Functions
6. Number of Channel levels
Learning Objectives:
a. Understand the definition, concept and nature of the Distribution Channel

b. Understand the definition of the marketing channel from a managerial perspective
c. See how marketing channels relate to the other strategic variables in the marketing
mix
d. Be familiar with the concepts of channel structure and ancillary structure and
recognize the difference between them
III. Channel Participants

1. Classification of Channel Participants
a. Producer and Manufacturer
b. Intermediaries
 Wholesaler Intermediaries
 Retail Intermediaries
c. Facilitating Agencies
a. Be familiar with the classification of the major participants in marketing channels

b. Understand why producers and manufacturers often find it necessary to shift many of
the distribution tasks to intermediaries
c. Identify the major types of Intermediaries
d. Appreciate the role played by facilitating agencies in marketing channels
IV. The Environment of Marketing Channels
1. The Marketing Channel and the Environment

a. The Economic Environment
b. The Competitive Environment
c. The Sociocultural Environment
d. The Technological Environment
e. The Legal Environment
a. Understand the impact of environment in a marketing channel context
V. Designing Marketing Channel
1. What is Channel Design

2. Who engages in Channel Design
3. A paradigm of the Channel Design Decision
a. Understand the meaning of channel design and the key distinguishing points
associated with it.
b. Realize that channel design in a complex process
c. Know the sequence of the channel design paradigm and understand the underlying
logic of the sequence.
d. Recognize a variety of situations that might call for a channel design decision
VI. Selecting the Channel Members
1. Channel Member Selection and Channel Design

2. The Selection Process
3. Finding Prospective Channel Members
4. Applying Selection Criteria
5. Securing the Channel Members
a. Have an appreciation for the importance of channel member selection

b. Understand the relationship between channel member selection and distribution
intensity
c. Know the main sources for finding prospective channel members
d. Be familiar with generalized lists of selection criteria
e. Recognize the need for adapting selection criteria to the needs of particular firms
f. Recognize the human side of channel me member selection and the role of fair and
friendly relationship in channels
VII. Logistics and Channel Management
1. The Role of Logistics

2. Logistics System, Components and Cost
3. Four Key Areas of Interface between Logistics and Channel Management
a. Be familiar with the definition of logistics, or physical distribution

b. Be aware of the role of logistics in the firm
c. Understand the system concept and the total cost approach ast hey apply to logistics
d. Know the major components of any logistics system
e. Be cognizant of the distinction between logistics management and channel
management
f. Have an overview of the four key interface between channel management and
logistic management
VIII. Marketing Channels for Services
1. Special Characteristic of Services

2. Implications of Service characteristic for Channel Management
3. Additional Perspectives on Marketing Channel for Services
a. Recognize the major importance of services as a major and rapidly growing sector
b. Realize that the basic objectives of both product marketing and service marketing as
the same
c. Understand the five characteristics of services that distinguish them from products
d. Be cognizant of the problem presented by the inseparability of services and he
difficulties of standardizing services for channel design and management
e. Have an awareness of how the perishability of service affects channel strategy, design
and management
f. Be familiar with some additional perspectives on marketing channels for services so
as to recognize possible relationships between services and marketing channels
IX. International Channel Perspectives
1. Environment of International Channel Management

2. Behavioral Processes in International Channels
3. Designing International Channels
4. Motivating International Channel Members
a. Recognize the need to consider marketing channels from an international perspectives

b. Have an appreciation for the broader and more complex environment within which
international marketing channel operate
c. Be familiar with key environmental factors affecting international marketing channel
d. Know how to approach the design or marketing channels from an international
perspectives
e. Be cognizant of the various channel structure associated with international marketing
channels

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DISTRIBUTION MANAGEMENT

a. Understand the definition, concept and nature of the Distribution Channel

III. Channel Participants

a. Be familiar with the classification of the major participants in marketing channels

IV. The Environment of Marketing Channels

1. The Marketing Channel and the Environment

V. Designing Marketing Channel

1. What is Channel Design

VI. Selecting the Channel Members

1. Channel Member Selection and Channel Design

a. Have an appreciation for the importance of channel member selection

VII. Logistics and Channel Management

1. The Role of Logistics

a. Be familiar with the definition of logistics, or physical distribution

VIII. Marketing Channels for Services

1. Special Characteristic of Services

IX. International Channel Perspectives

1. Environment of International Channel Management

a. Recognize the need to consider marketing channels from an international perspectives

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