Marketing 338 - Channels of Distribution

MARKETING 430 - CHANNELS OF DISTRIBUTION CHANNEL STRUCTURE ANALYSIS PROJECT FALL 2009

OBJECTIVE: to apply the principles of channels design to an actual marketing channel by identifying the strategies and characteristics of a selected group of organizations and analyzing the design

The project is a written analysis of a channel system. The paper should be based on library/Internet research and where appropriate, personal interview and observation.

The project should include (but is not limited to):

I. Description of the channel (30 points)

 identification of channel members including the number of levels (channel structure; Note: include a detailed diagram)  identification of primary tasks performed by each member; how is value added at each level? (note: in the case of a channel that uses many different retailers, grouping of members is acceptable)  discussion of the variables (except environmental- see below) that affect the design of this channel system ( See chapters 6 (p.198) and 8 (p.248) in your text)  identification and discussion of distribution objectives including:  target markets  distribution strategy (intensity)  priority of distribution in relation to other marketing mix variables  identification of probable channel leader; description of relationship approach

II. Environmental Analysis (15 points)

 include a discussion of each of the environmental dimensions(i.e.competition,cultural,economic, technological,etc.) as appropriate for your channel. This should be channel specific. That is, do not include a discussion of an environment in general. Rather, discuss how each environment specifically affects the channel you've selected. III. Critical Analysis of Channel Design (25 points)

 discussion of positive and negative aspects of the design (why is the design efficient or not efficient; does it make sense) (15 points)  suggestions for improvement (e.g. what other structure /structures might be better) (10 points)Discuss the pros and cons of each suggestion you make.

[NOTE: THE CRITICAL ANALYSIS IS AN EXTREMELY IMPORTANT SECTION. DO NOT SAY THAT THE SYSTEM SEEMS TO BE WORKING SO IT DOESN'T NEED IMPROVING. EVERY SYSTEM HAS WEAKNESSES THAT CAN BE IMPROVED UPON. THIS IS AN ANALYSIS OF THE SYSTEM AND WILL INVOLVE SOME CRITICAL THINKING ON YOUR PART. ALSO BE SURE YOU ARE ANALYZING THE DESIGN AND STRATEGY FROM THE CHANNEL STRATEGY PERSPECTIVE. FOR EXAMPLE, A DISCUSSION OF HOW THEY SHOULD INCREASE THEIR ADVERTISING BUDGET IS NOT APPROPRIATE!]

IV. Writing Style/Following Directions (10 points)

These points will be awarded based on writing style (i.e. organization of paper, grammar, sentence structure, spelling, etc.), the quality of the bibliography, and adherence to directions. Inability to follow directions suggests the inability to function in a professional environment and is therefore extremely important. Note: You MUST have a draft of your paper reviewed by the Business Communications Center at least one time by November 13. Papers not reviewed by this date will receive no points for this element of your project. Appointments should be made online at the following address: http://www.franke.nau.edu/StudentResources/commcenter/

V. Teamwork (10 points)

These points will be awarded based on the level of effort of each person as perceived by his/her teammates (See attachment). A team member can be “fired” by a consensus of the remaining team members any time up to October 19 . In order to fire a member, all other team members must agree that the team member is not contributing adequately to the completion of the project. If a team member is fired, he/she must complete a project individually on a company other than the team’s chosen company.

VI. Presentation (10 points) Presentations by each team will be the week of November 30. Attendance is mandatory during this week. The presentation should be a professional description of the channel system and an executive summary of interesting findings. The presentation should be no more than 10 minutes long. All team members must be present and professionally dressed, although not all members have to present. Additional directions:

The report should be typed, double-spaced, and spiral bound. No other type of binding is acceptable (20 page maximum). An additional copy must be submitted to Dr. Paden as an attachment to an e-mail.

The report should include parenthetical citations and a bibliography. The bibliography should consist of no less than eight business periodicals (e.g. BusinessWeek, Time, Wall Street Journal, or trade publications for the industry). Personal interviews and internal documents are acceptable, but must be supplemented by business periodical references. Data gathered from the Internet should be included in the bibliography and should include an address for the web site.

Your paper must be divided into sections with appropriate headings and sub-headings. The use of first person should be avoided in business papers.

Students must sign up for preferred organization [Note: no beer companies or major soft drink companies], and identify 2-3 class partners by Wednesday, September 16. Changes to project companies must be approved by Dr. Paden.

Choose your partners carefully as you will be working together the entire semester and will each receive the same grade for the project. You are responsible for turning in a completed project on the due date regardless of whether or not your partner "flakes out" on you. [See note concerning “firing” a member.]

Completed papers are due on Wednesday, November 25 at the beginning of class. Do not wait until the night before the deadline to print the paper. Late papers (papers turned in more than 30 minutes after the beginning of class on the 25th) will be penalized one letter grade per day.  Examples of parenthetical citations

When the author is identified:

Sears could be undersold by competitors due to their extreme markup (Sellers 2008, p. 82).

When the author is not identified:

Mitsubishi is “one of Circuit City’s top ten suppliers” and the breakup has been a loss for Circuit City (Forbes, March 2008).

 Examples of use of first person:

Poor choice: We think they should develop and distribute their products using a catalog format. Better choice: An additional suggestion for distribution of Company X's products is to distribute through a direct channel using a catalog format.

Poor choice: When I interviewed the logistics manager, Mr. Jones, he said that they try to eliminate the middleman. Better choice: According to Mr. Jones, Logistics Manager of Company X, wholesalers are not used to distribute the product (personal interview, 9/15/09). MARKETING 430 FALL 2009 DR. PADEN TEAM MEMBER EVALUATION

Directions:

1. List each team member including yourself 2. Give each member (including yourself) points between 0 and 10 to indicate the amount of effort that was expended by each member. For example, 10 points awarded to your partner would indicate that he/she worked extremely hard on the project and contributed significantly to the project. 0-2 points awarded would indicate that the individual expended minimal effort and essentially got a “free ride” on the project. 3. Put your name on the evaluation sheet and place it in the envelope provided by Dr. Paden on the day you turn in your project. Failure to turn in the completed evaluation sheet on November 25th will result in 0 points awarded to you for the Teamwork section of the paper.

The points awarded by yourself and your partner will be averaged to determine the Teamwork section points for each individual. The evaluations will be confidential.

Your name______

Team member 1 (you)______Points Deserved___ Team member 2 ______Points Deserved___ Team member 3 ______Points Deserved___ Team member 4 ______Points Deserved___

Optional Comments:

MKT 430 Major Project Commitment Form

Group Members (print names): ______

______

We have selected ______as the channel system for the project.

We have agreed to be available to meet on the day and time below: day of week:______time of day:______

Member signatures: ______

______