1. Distribution and Channel
decisions

2. • Marketing channels- a set of interdependent
organizations involved in the process of
making a product of service available for use
or consumption
• They are the set of pathways a product or
service follows after production, culminating
in the purchase and use of the product

3. Channel member functions
• Gather market information-current and potential
customers, competitors and environment
• Develop and disseminate persuasive
communication (Point of Sale)
• Stock and storage
• Oversee actual transfer of ownership
• Servicing and installation
• Financing
• Collect payment and transfer back to
manufacturer

4. Channel level
• Zero channel level (direct marketing)
• Single level (door-to-door sales) eg; Eureka
Forbes, Tupeprware,
• Multilevel channels

5. Service sector channels
• Channels not limited to physical goods
• Education services, beauty salons, banking,
insurance, travel

6. Channel design decisions
• Depend on service output levels desired by
target customers.
Lot size, waiting and delivery time, spatial convenience, product variety,
service back-up
Establishing objectives and constraints
Identifying major channel alternatives (types of
intermediaries, number of intermediaries, split of responsibilities)
Evaluating major alternatives
(Economic criteria, control and adaptive criteria)

7. Channel management
• Selecting channel members
• Training
• Motivating
• Evaluating
• Review

8. Channel conflict
• Conflict cannot be avoided
• Needs to be managed
• Legal and ethical issues

9. Assignment (15 marks)
• Choose and industry; identify at least 4
competing companies in that industry
• For each firm identify the various brand/s it
markets, the target segment and the brand
positioning for each brand.
• Give a brief background of the industry
• Should be maximum 2 A-4 pages
• Must submit a printout
• Source of data (tables, reports, graphs etc) must
be specified and acknowledged.