NZQA registered unit standard
26389 version 2
Page 1 of 4
Title
Demonstrate knowledge of distribution channels
Level
5
Purpose
Credits
5
This unit standard is for people who seek to provide effective
links between products and end-users.
People credited with this unit standard are able to discuss the
role and types of distribution channels, and assess distribution
channel options.
Classification
Marketing > Generic Marketing
Available grade
Achieved
Explanatory notes
1
Performance of outcomes of this unit standard will require adherence to the New
Zealand Marketing Association Codes of Ethics, or an equivalent code:
http://www.marketing.org.nz/.
2
Assessment guidance
Assessment for outcome 3 of this standard can be based on an evaluation of
distribution objectives and channels for a product the candidate’s organisation has
marketed, or on a case study of distribution objectives and channels used by a New
Zealand enterprise or an international enterprise with operations in New Zealand. If
based on a product the candidate’s organisation has marketed, commercial
sensitivities must be respected and permissions sought. If based on a case study,
the candidate must have access to a sufficient body of academic and/or business
literature on the product to conduct the evaluation.
3
Definitions
Distribution channels are an arrangement of interdependent organisations involved in
the process of making a product available for use or consumption by consumers or
businesses.
Products encompass goods and services, and ideas.
4
References
Kotler, P. & Armstrong, G. Principles of Marketing. Prentice Hall: Various
international editions.
Lamb, C.W., Hair, J.F., McDaniel, C., Summers, J., & Gardiner M. (2009) MKTG, (1st
Asia Pacific Ed.). Cengage Learning: Australia.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
5
26389 version 2
Page 2 of 4
Legislation relevant to this unit standard includes but is not limited to the:
Commerce Act 1986
Consumer Guarantees Act 1993
Fair Trading Act 1986
Privacy Act 1993
Sale of Goods Act 1908
Unsolicited Electronic Messages Act 2007.
Outcomes and evidence requirements
Outcome 1
Discuss the role of distribution channels.
Evidence requirements
1.1
The role of distribution channels is discussed in terms of linking products with
end-users.
Outcome 2
Discuss types of distribution channels.
Evidence requirements
2.1
Direct and indirect channels are differentiated in terms of intermediary levels.
2.2
Reverse channels are discussed in terms of functionality.
Range
2.3
Channel intermediaries are discussed in terms of changing channel
organisation.
Range
2.4
recycling components, product recalls, provision of services,
product and service evaluations.
intermediaries include – middleman, agent, broker, wholesaler,
retailer, distributor, dealer, reseller, franchisee, e-distribution.
Marketing channels are discussed in terms of integration and functionality.
Range
conventional, horizontal, hybrid, vertical – corporate, contractual,
administered.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26389 version 2
Page 3 of 4
Outcome 3
Assess distribution channel options.
Range
a minimum of one product and two target markets.
Evidence requirements
3.1
Distribution options are evaluated, and systems are decided for specific
products and target markets.
3.2
Distribution costs are assessed in relation to distribution objectives.
distribution objectives include but are not limited to – minimisation
of costs, maximisation of customer satisfaction, total cost concept,
delivery lead time.
Range
3.3
Provisions for monitoring the achievement of distribution objectives are
developed for distribution channels.
3.4
Distribution channel options are assessed for their impact on customer
satisfaction.
Range
3.5
intensive, selective, exclusive.
Channels are assessed for potential sources of channel conflict.
may include but is not limited to – bypassing channels, over
saturating markets, complex channel links, inadequate channel
support, inconsistent channel management.
Range
Replacement information
This unit standard replaced unit standard 2947 and unit
standard 2948.
Planned review date
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
19 November 2010
31 December 2016
Rollover and
Revision
2
16 April 2015
N/A
Consent and Moderation Requirements (CMR) reference
0113
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
26389 version 2
Page 4 of 4
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016