DISTRIBUTION MANAGEMENT
Business 1587
Spring Semester 2013
Instructor: John M. McGrath, Ph.D.
Office:
133 D Biddle Hall
Phone: 269-2972; Fax: 269-7255
Hours: 10:00-11:00 a.m. M-TH
Prerequisites: Business 1560, 0510, 0500
Required for Each Student:
Marketing Channels: A Relationship Approach,
(Pelton, 2004)
(plus anytime by appointment)
e-mail: mcgrath@pitt.edu
Website: www.pitt.edu/~mcgrath
Home Phone: 539-1317 (no calls after 8 p.m. please)
Course Description
This is an advanced course in the field of Marketing which focuses on the management of channels of
distribution for goods and services. Topics include the discussion of channel member roles and relationships,
legal issues related to distribution, and techniques for optimizing the effectiveness of distribution channels.
Course Objectives
The first objective is to build on the skills you gained in Marketing Management and give you much more indepth exposure to the distribution aspect of the marketing mix.
The second objective is to provide you with more opportunities to hone the type of analytical skills that will be
required of you in “the real world.” You will be expected not only to learn the details of an important
distribution-related case study, but also to personally present and defend your analysis before the class.
Organization and Format
The organization of this course will be similar to Marketing Management because it relies heavily on the case
method of learning. Specifically, you will be required to develop a detailed individual field report based on your
learning from the text coupled with a real world distribution experience, and to make an individual presentation
of your findings to the class. Unlike Marketing Management, there will be some quizzes and field trip
commentaries.
The format of most class sessions will be much less of an emphasis on lectures and more focus on exercises,
student presentations, and discussion. A typical class session will begin with a brief lecture followed by a
discussion period and the student presentation of a field report.
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GRADING POLICY
Individual analytical and communication skills account for 100% of your final grade. There are no team assignments.
The largest portion of your grade, accounting for 30 possible points, will be dedicated to your development of a personalized
Channel Immersion Project. Specifically, this project will require you to immerse yourself in the distribution channel of any
organization of your choosing, to be approved in advance by the instructor. You will obtain permission from the organization
in advance, then make arrangements to go into the field to visit the organization and “shadow” them for at least a morning or
an afternoon and to study their distribution channels in-depth. You will then summarize your learning in a report document
that will account for 10 possible points, and be limited to 4 pages (see attached checklist). You will also present the report to
the class in exchange for 10 possible points, then manage a classroom discussion/demonstration of the report’s key findings
for the final 10 possible points, judged by your peers.
The four other grading components of the course will each account the following possible points, specifically:
1) Four quizzes will be administered at intervals during the term, and during the final exam session, each accounting for 10
possible points. Quizzes will cover only major topics in the text and lectures.
2) A brief “How Did That Get Here?” oral presentation will account for 20 additional possible points. This project covers
your explanation of the distribution channel for a consumer product sold in the Johnstown area. A signup sheet attached
to the class roster will allow you to reserve a presentation day and topic. Once a topic is chosen, that product category will
be closed to other students (for example Stride gum closes the door to other brands of gum and candy). As an added
challenge, this presentation must be made without the use of PowerPoint, except for one title slide that provides all your
source citations. You will present to the class in exchange for 20 possible points—10 judged by your peers, and 10 judged
by the instructor. Professional dress is not required. A checklist is attached to guide your preparation of the presentation.
3) A brief commentary document prepared in time for the class immediately following any one of the course’s field
trips will account for the remaining 10 points. This document will be limited to 2 pages (see attached checklist).
4) An easy self-serving project that consists of registration on the University’s FutureLinks career services portal for
5 possible points, plus 5 points for scheduling an interview through this service. To receive these points, you must
present a printout of your registration by Spring Break, and your interview confirmation and present it to the instructor
by April 1. If you complete these two assignments, you may skip the final quiz, or elect to drop your lowest quiz score.
Evaluated Projects
Source of Evaluation
1) Channel Immersion Project
- Hand-in
Instructor
- Presentation
Instructor
- Demonstration
Classmates
2) Quizzes
- Quiz 1-4
Instructor
3) “How Did That Get Here?” presentation
- Hand-in
Instructor
- Presentation
Classmates
4) Field Trip Commentary
- For any trip
Instructor
5) Your Future Career Registration/Interview
- Registration (by Spring Break)
Instructor
- Interview (by April 1)
Instructor
Possible Grade Points
10
10
10
10 each =
40
10
10
10
Grand Total
5
5
110
Grade Conversion Scale
To determine your final letter grade for the course, simply add up the points you earn from the above projects and
compare them with the grade conversion scale below:
A+ 98-100
A
92-97
A90-91
B+ 88-89
B 82-87
B- 80-81
C+ 78-79
C 72-77
C- 70-71
D+
D
D-
68-69
62-67
60-61
F
0-59
Extra Credit
No extra credit will be granted during the normal grading of this course.
Study Assistance
Students with disabilities requesting academic accommodations for this course should notify the course instructor and the
Office of Health and Wellness Services (OHWS) as early as possible in the semester. OHWS will verify your disability and
determine reasonable accommodations for this course. To learn more about these services, please call # 7119 or visit the
Room G-10 (on the basement level) of the Owen Library.
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STUDENT’S EXPECTATIONS
You should expect that, when you complete this course, you will know much more about the distribution aspects of an
organization’s marketing efforts. Specific learning expectations include:
- How different channels of distribution are structured
- The roles and responsibilities of different types of channel members
- How to manage relationships between channel members
- Ways to optimize the effectiveness of distribution channels
You should also expect have on additional piece of evidence which would be suitable to present to potential employers
as evidence of your collegiate marketing work:
- Your Channel Immersion Project report
INSTRUCTOR’S EXPECTATIONS
Attendance
All students are expected to attend class. In fact, the instructor’s expectation is that you will maximize your investment in
this course by attending as many sessions as possible. Therefore, attendance will not account for a portion of your grade,
although it may help you in some borderline situations (i.e., if you are within less than a full point of the next highest
grade). A class roster will be circulated within the first 15 minutes of each session for sign-in; those arriving after 10
minutes will not be permitted to sign in and be considered absent. The instructor reserves the right to penalize students
who abuse the attendance policy by adjusting grading (downward) accordingly.
Cell phones and any other electronic devices must be disabled during class. If a device activates during class, you must
leave the classroom to respond-but you will not be permitted to return for the remainder of class.
This policy includes incoming and outgoing text messages.
Assignments
No late hand-ins of assignments will be accepted. If you know you will be absent when a project is due, you may handdeliver or fax your hand-in to me at (814) 269-7255, up to class time of the due date, as assigned in class (you are
responsible for making sure there are no changes to the due date). All hand-ins are expected to be typed and, in the case
of multiple-page assignments, stapled or professionally bound (no loose papers attached by folded corners).
Presentations
Presentations will be graded according to the following standards: 10 = an exceptional effort which surpasses the
requirements of the assignment; 9 = a very good effort in successfully fulfilling the requirements; 8 or less: an effort
which does not fulfill all requirements of the assignment. Standard business attire is required for your Channel
Immersion presentation, but is not required for your “Ripped From the Headlines” presentation. Also, as in “the real
world,” all students are expected to offer a professional level of attention to other students’ oral presentations. For the
benefit of those presenting, no talking or distractions of any kind will be tolerated.
Honesty Policy
Since this course will simulate “real world” analytical processes, professional plagiarism standards will be enforced.
Therefore, if any dishonest practices are discovered, the result will be instant failure for the entire course. This includes
new high-tech methods of cheating, such as copying a fellow student’s computer file, making cosmetic changes, and
then turning it in as your own work. The instructor also reserves the right to require a spontaneous oral presentation of
the facts contained in any written assignment or of the answers provided on any test.
Students With Disabilities
Students with disabilities requesting academic accommodations for this course should notify the course instructor and
the Office of Disability Services as early as possible in the semester. The Director of Disability Services will verify the
disability and determine reasonable accommodations for the course. To learn more about these services, please call
#7998 or visit the Academic Success Center in Room G-16 of the Owen Library.
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COURSE SCHEDULE
Topic
Introduction
Channels Framework
Channel Exosystems
Channel Microsystems
Session
Day
Date
1
Monday
1/7
2
Wednesday
1/9
3
Monday
1/14
4
Wednesday
1/16
Monday
1/21
5
Wednesday
1/23
6
7
Monday
Wednesday
1/28
1/30
8
Monday
2/4
9
Wednesday
2/6
Managing uncertainty
10
Monday
2/11
Tentative Field Trip
11
Wednesday
2/13
12
Monday
2/18
13
Wednesday
2/20
Channel relationships
“”
Legal and ethical issues
14
Monday
2/25
Wednesday
2/27
Conference—No Class
15
Monday
3/4
Conflict resolution strategies
Chapter 8
16
Wednesday
3/6
Information systems/ logistics
Chapter 9
Lecture
Orientation
Channel basics
Channel roles
Channel design
MLK Day—No class
“”
Marketing mix relationships
Assignments
Chapter 1
Chapter 2
Chapter 3
“”
Chapter 4
Tentative Field Trip
Quiz #1
Chapter 5
Chapter 6
“”
Chapter 7
Quiz #2
Spring Break—No Class
Channel Mesosystems
Final Exam Day
17
Monday
3/18
Tentative Field Trip
18
Wednesday
3/20
Positive channel climates
19
Monday
3/25
Chapter 10
Quiz #3
20
Wednesday
3/27
Vertical marketing systems
Chapter 11
21
Monday
4/1
Tentative Field Trip
22
Wednesday
4/3
23
Monday
4/8
24
Wednesday
4/10
Franchising
“”
Developing long term value
25
Monday
4/15
Tentative Field Trip
26
Wednesday
4/17
Strategic Partnering
Thursday
4/25
12:30-2:30
Chapter 12
“”
Chapter 13
Chapter 14
Quiz #4
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DISTRIBUTION MANAGEMENT
Spring 2013
Channel Immersion Project Checklist
Grading: 10 point report; 10 point presentation (professional dress required); 10 point demonstration
Limit: 4 pages
1) Organization Basics
 Identify and provide specific information about your organization, including the following
basic pieces of information:
-
Headquarters and local Johnstown-area operation location
Corporate and local Johnstown-area operation history
Key corporate financial information for most recent year (sales, profits, stock performance)
 Describe the nature of your experience, including specifics such as the date, specific time
and duration of your visit (must be at least a morning or afternoon—about 3-4 hours), and
a description of the specific channel member activities the you “shadowed”
 Identify your primary contact at the organization and provide the following:
-
Education history (including college, trade school, or corporate training programs)
Current position with the organization, including:
o
o
-
Key responsibilities
A simple org chart depicting your contact in relation to superiors and subordinates
Info about the type and location of other channel members the person interacts with
The greatest enjoyment — and frustration — in dealing with other channel members
2) Industry Background
 Identify the brand that was the main focus of your field research, including:
-
Type of product category (provide NIACS number and description)
Stage in the project life cycle for its industry
Estimated market share of your organization and its key competitors
3) Channel Structure and Relationships
 Diagram the structure of the channel that you observed, including the types and roles of
all channel members that you encountered, and provide rationale
 Identify the channel member you believe is the channel captain and provide rationale
 Identify the “weak link,” channel member(s) if any, and provide rationale
 Describe the relationships you witnessed between channel members and rate the
strength of your organization’s relationships with their other members on a 1-10 scale
(10 = perfectly harmonious relationship)
4)
Your Observations
 “Behind the scenes” insights
-
Surprising information you may have learned during your immersion
Please provide a visual layout of your organization’s physical plant(s) including the location of key
distribution-oriented functions (loading dock, storage area, truck parking, etc.)
 Briefly discuss your impressions of your time with the organization, including:
5)
Your estimate of the current channel’s effectiveness on a 1-10 scale (10 = extremely effective)
Your recommendation(s) to improve the channel based on your observations
Demonstration
 Conduct a demonstration that features a series of questions, a game, or whatever creative
way you can think of that:
a) Involves everyone in the class
b) Is directly related to your immersion experience (you will lose points for irrelevancy)
c) Creates interest in your experience in ways your classmates can relate to
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DISTRIBUTION MANAGEMENT
Spring 2013
“How Did That Get Here? Checklist
Grading: 10 point presentation (classmate-graded); 10 point presentation (instructor-graded)
Professional dress not required
PowerPoint limited to one title slide with all sources cited
1) Project Guidelines
 Your channel should be for a consumer product familiar to your classmates
 Your channel should include more than one channel member before the end consumer
(for example, a Producer-Consumer channel would not be acceptable)
 Consider supply sources that your producer uses to create your product, including raw
materials and/or process materials
2) Channel Diagram
 Create a diagram of each element of your channel beginning with the suppliers for your
producer, and following through to the end consumer. The diagram can be drawn on the
board or produced beforehand on poster boards or other media.
 Provide a description of each channel member, including:
o Their role in the channel
o Information about the organization’s history
o Some estimate of the organization’s size in revenues and employees
o Scope of business for the organization (for example, what other businesses are
they engaged in when not working in this channel?)
o Street address of the organization
3) Time Elapsed
 Provide an estimate of the amount of time expended…
o For each stage in the channel…
o …and in total from the producer to the end consumer
4) Value Added
 Estimate of the dollar value of one unit of your brand…
o That each channel member paid for the product at their stage in the channel…
o …from the producer to the end consumer
5) Sources
 Provide at least one source for each member of your channel diagram.
 Identify specific information about all your sources, including:
- Individual and/or publication name
- Date of interview/article
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DISTRIBUTION MANAGEMENT
Spring 2013
Field Trip Commentary Checklist
Grading: 10 point paper
Limit: 2 pages
1) Background
 Identify the organization visited and the date of the trip
2) Your Impressions Before the Trip
 Discuss your impressions of the organization you visited before the trip
- Where you aware the organization existed?
- If so, what were your specific attitudes about the organization?
- If not, what were you attitudes about this general type of organization?
3) Channel Fundamentals
 Identify the distribution strategy you believe the organization is using and provide rationale
 Diagram the distribution structure you believe the organization is involved in, including the
types and roles of all channel members, and provide rationale
 Identify the channel captain in the organization’s channel, and provide rationale
4) Your Impressions After the Trip
 Discuss your impressions of the organization after the trip, including a specific SWOT
assessment
5) Suggestion(s) For Improvement
 Identify at least one specific action you believe the organization could take to improve
their effectiveness and/or the effectiveness of their entire channel
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DISTRIBUTION MANAGEMENT
Spring 2013
Your Future: A (Future Links)
Grading: 5 points
Limit: 1 page + attached registration confirmation printout
1) Your information:
Name: _______________________________________
2) Deadline: Spring Break
2) Requirements:
 Follow the directions noted on the webpage below, and create a FutureLinks account
 Print out a copy of your registration confirmation including your name as verification
 Attach your printed registration confirmation form to this page
 Present to the instructor before Spring Break to receive credit
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Spring 2013
DISTRIBUTION MANAGEMENT
Your Future: B (Interview)
Grading: 5 points
Limit: 1 page + attached interview confirmation evidence printout
1) Your information:
Name: ______________________________________________________
Organization you interviewed with: _______________________________
Name and title of interviewer: ____________________________________
Date of interview:______________________________________________
2) Deadline: April 1
3) Requirements:
 Schedule an interview with a potential employer using the FutureLinks resource. The
interview can be on campus or at any off campus location. The organization can be profit- or
not-for-profit.
 Complete the information on this page
 Attach printed evidence of your interview. Ideally, this would be in the form of a FutureLinks
notice, or an email/text message from the organization, discussing details of the interview.
 Present to the instructor before April 1 to receive credit
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Business Curriculum
Classroom Code of Conduct
Classes are considered to be a work environment and students are expected to maintain professional standards of
conduct at all times. Remember, every student contributes to, or detracts from, a productive learning environment.
Make sure your decorum adds to a positive environment. Therefore the instructor reserves the right to ask students to
leave the room if they engage in any of the following activities:








Disruptive behavior targeting fellow students and/or the instructor
Working on subject matter not related to the course (including homework)
Checking/responding to email and text messages or using the internet without the instructor’s permission
Consistently arriving late to class
Getting up and leaving class frequently (to get a drink, etc.)
Leaving cell phones and pagers on during class, using cell phones/receiving calls during class
Reading materials not related to class
Failure to maintain professional and courteous behavior at all times
Your college years are the perfect time to learn, practice, and incorporate professional standards of conduct. Be
punctual and prepared, do work you can be proud of, make meaningful contributions to teams and groups to which you
belong. Take advantage of opportunities to network, meet professionals, and build career enhancing skills.
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