Marketing 364
MARKETING CHANNELS
with Duane Weaver
Today’s 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)

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, ELearning, 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
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?

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.
Course Text

Marketing Channels, Coughlan,
Anderson, Stern, El-Ansary. 6th
Edition, Prentice Hall. ISBN: 0-13012772-8.


Six prescribed team case studies
available on reserve in the book store
(to be made available end of 2nd week of course).
Course Outline
See Handout
 Evaluation:

First Exam
Second Exam
Case Analysis (Teams)
Case Analysis (Self)
Pop-quizzes

20%
20%
20%
30%
10%
Outline (chapters and cases)
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

Create a Team name and provide a list of the team members
with:
(let your team know if you are on the “registered” list vs. the waiting list)



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.
Course Website

Course information including the
outline and updates is available on the
course website at:
http://Web.mala.bc.ca/weaverd/Mark364
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

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.
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?
What is a Marketing Channel?
1.
Set of interdependent organizations
2.
A process (usually over time)
3.
Process with purpose
– “to satisfy end-users”

OFTEN VIEWED AS KEY STRATEGIC ASSET OF
MANUFACTURER (p.3)
^^TRUE OR NOT TRUE^^
Impetus for Channel Change

Demand Factors

Facilitation of Search

Adjustment of Assortment Discrepancy
Intermediary Channels arise because buyers and sellers
cannot find each other
Manufacturer= large quantity of limited variety (EofScale)
Consumers= large variety in small quantities (customization &
choice)
1.
2.
3.
4.
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.
Impetus for Channel Change

Supply Factors

Routinization of Transactions

Reduction of # of Contacts
Electronic Data Interchange, Continuous Replenishment…
Employing 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
What work do the channels perform?

Includes the performance of several
marketing flows. E.g..:
Producers
Physical
Physical
Physical
Ownership
Ownership
Ownership
Promotion
Promotion
Promotion
Negotiation
Financing
Wholesalers
Negotiation
Financing
Retailers
Consumers:
Negotiation Industrial
and
Financing
Household
Risking
Risking
Risking
Ordering
Ordering
Ordering
Payment
Payment
Payment
Who comprises the channel?

Manufacturers

Intermediaries (not manufacturer,
not end-user)….e.g.?
 Wholesalers
 Retail
 Specialized
 Perform

End Users
a specific flow (ADP) other e.g.?
Channel formats and definitions

Manufacturer-Based

Retailer-Based

Service-Provider Based

Other

Buyer Initiated

Point of Consumption Merchandising

Third-Party Influencer

Catalog & Technology-Aided