Marketing 364 MARKETING CHANNELS

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Marketing 364MARKETING CHANNELS

• with Duane Weaver

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Todays Outline

• Introductions
• Overview of Course Outline
• Overview of Course Text
• Overview of Cases and Teams
• Introduction to Marketing Channels, Chapter 1
  (part one of two)

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Introductions - Instructor

• Duane Weaver
• B.Comm., M.D.Ed.(th.pds), IESNA
• CEO 2Birds1Stone
• Marketing and Computer Applications Instructor
• 20 years management experience (marketing)
• Industry experience High-tech, Artificial
  Intelligence, Telecommunications, Computing,
  Lighting, Automotive, Fashion, Distance
  Education, B2B, B2C, E-Commerce, E-Learning,
  Grocery and Floral.
• Manufacturing, Wholesale and Retail experience.
• Family, small business, and multi-national
  corporations
• Positions Board of Directors, CEO, General
  Manager, International Sales Manager, Business
  Development Manager, Regional Sales Manager,
  Product Manager, Market Manager, Service Manager,
  Parts Manager, Acct. Manager, Marketing/Business
  Consultant, Instructor
• Enjoy sailing, soccer, badminton, golf and
  camping

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Introductions - Students

• Your name?
• What do you expect to get out of learning
  Marketing 364? What is your personal learning
  GOAL?
• Provide an example of one company that in your
  opinion, manages marketing channels well. Why?

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Major Objectives Of The Course

• To introduce students to a framework for channel
  analysis, by developing an understanding of
  marketing channels, channel segmentation, channel
  positioning, channel targeting and how to
  establish new channels.
• To enable students to attack the design question
  in channel management by looking at how to
  structure or re-structure the channel for optimum
  performance.
• To be able to perform Gap Analysis and look at
  means to improve overall channel performance and
  maximize channel profitability.
• To provide students with a greater understanding
  of the fundamentals of channel implementation,
  looking at the intricacies associated with
  implementing an optimum channel design and
  factors that influence a channel plan.
• By the end of the semester, students are expected
  to be able to analyze distribution channels,
  develop and design distribution channels, and
  understand the significant requirements needed to
  implement a channel distribution plan.

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Course Text

• Marketing Channels, Coughlan, Anderson, Stern,
  El-Ansary. 6th Edition, Prentice Hall. ISBN
  0-13-012772-8.
• Six prescribed team case studies available on
  reserve in the book store (to be made available
  end of 2nd week of course).

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Course Outline

• See Handout
• Evaluation
• First Exam 20
• Second Exam 20
• Case Analysis (Teams) 20
• Case Analysis (Self) 30
• Pop-quizzes 10
• Outline (chapters and cases)

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Case Teams

• Groups of 5 or 6 to prepare and review weekly
  cases.
• 2-3 cases per team during the course.
• Select your group members now(let your team know
  if you are on the registered list vs. the
  waiting list)
• Create a Team name and provide a list of the team
  members with
• Team Name
• Student Names
• Student Ids
• NOTE ALL STUDENTS on the case team will
  receive the same grade. Your team members will be
  your team for the entire course.

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Course Website

• Course information including the outline and
  updates is available on the course website at
• http//Web.mala.bc.ca/weaverd/Mark364

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Lecture 1 part 2 OUTLINE

• What is a marketing channels?
• Impetus for Channel Change
• What work do the channels perform?
• Who comprises the channel?
• Channel formats and definitions

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What is a Marketing Channel?

• Your thoughts?
• Using your own words (take 5 minutes) to briefly
  write a definition of a what a marketing channel
  is to you.

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What is a Marketing Channel?

• A set of interdependent organizations
  involved in the process of making a product or
  service available for use or consumption.
• (Coughlan, Anderson, Stern, El-ansary, P.3)
• So what does that really mean?

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What is a Marketing Channel?

• Set of interdependent organizations
• A process (usually over time)
• Process with purpose to satisfy end-users
• OFTEN VIEWED AS KEY STRATEGIC ASSET OF
  MANUFACTURER (p.3)
• TRUE OR NOT TRUE

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Impetus for Channel Change

• Demand Factors
• Facilitation of SearchIntermediary Channels
  arise because buyers and sellers cannot find each
  other
• Adjustment of Assortment Discrepancy
• Manufacturer large quantity of limited variety
  (EofScale)Consumers large variety in small
  quantities (customization choice)
• Sorting out (packer oranges size and grade)
• Accumulation (wholesaler gather together supply)
• Allocation (wholesale distributor breaking bulk)
• Assorting (complementary goods are built up
  together)
• Bottom line Meeting customer demands, driven by
  the consumer.

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Impetus for Channel Change

• Supply Factors
• Routinization of TransactionsElectronic Data
  Interchange, Continuous Replenishment
• Reduction of of ContactsEmploying more and
  more intermediaries is subject to diminishing
  returns simply from the point of view of number
  and cost of contacts in the market (Coughlan,
  Anderson, Stern, El-Ansary, P. 7)
• Bottom-line mitigating risk, minimizing
  management cost, maximizing utility

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What work do the channels perform?

• Includes the performance of several marketing
  flows. E.g..

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Who comprises the channel?

• Manufacturers
• Intermediaries (not manufacturer,not
  end-user).e.g.?
• Wholesalers
• Retail
• Specialized
• Perform a specific flow (ADP) other e.g.?
• End Users

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Channel formats and definitions

• Manufacturer-Based
• Retailer-Based
• Service-Provider Based
• Other
• Buyer Initiated
• Point of Consumption Merchandising
• Third-Party Influencer
• Catalog Technology-Aided