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, 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

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: Six prescribed team case studies available on reserve in the book store (to be made available end of 2 nd week of course).

Course Outline See Handout Evaluation: First Exam20% Second Exam20% Case Analysis (Teams)20% Case Analysis (Self)30% Pop-quizzes10% 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 (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.

Course Website Course information including the outline and updates is available on the course website at:

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 Intermediary 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) 1. Sorting out (packer: oranges size and grade) 2. Accumulation (wholesaler: gather together supply) 3. Allocation (wholesale distributor: breaking bulk) 4. 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 Electronic Data Interchange, Continuous Replenishment… Reduction of # of Contacts 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..: ProducersRetailers Consumers: Industrial and Household Wholesalers Physical Ownership Promotion Negotiation Financing Payment Ordering Risking Physical Ownership Promotion Negotiation Financing Payment Ordering Risking Physical Ownership Promotion Negotiation Financing Payment Ordering Risking

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

Channel formats and definitions Manufacturer-Based Retailer-Based Service-Provider Based Other Buyer Initiated Point of Consumption Merchandising Third-Party Influencer Catalog & Technology-Aided