The document discusses marketing channels and channel management. It defines marketing channels as the set of interdependent organizations that make a product available for purchase and use. Channel functions include gathering market information, promotion, storage, transferring ownership, installation, financing, and payment collection. Channel levels can be direct, single-level, or multi-level depending on the number of intermediaries. The document also discusses channels for services and considerations for channel design such as output levels, delivery times, and product variety. It outlines steps for channel management including member selection, training, evaluation, and conflict resolution.

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.