Rizal Technological University

Brgy. Malamig, Boni Avenue Mandaluyong City

College of Business and Entrepreneurial Technology
BSBA Marketing Management

Name: NALA, SHERREN MARIE F. Distribution Management

CBET-19 503P Submitted to: Ma’am Ester Edralin
Date: September 18, 2020

SUMMARY

Marketing channels that make products and services readily available to

customers. Four factors account for the growing emphasis on marketing channel
strategy: the explosion of information technology and E-commerce, the greater
difficulty in gaining a sustainable competitive advantage, the growing power of
distributors, especially giant retailers in marketing channels, the need to reduce
distribution costs. All of these factors have combined to make marketing channels a
key component of the larger field of strategic marketing management.
The basic marketing mix strategy provides the framework for examining the
marketing channel from a marketing management perspective. Channel strategy fit
under the distribution variable of the four basic strategic variables of the marketing
mix product, price, promotion, and distribution. The channel manager must operate
the external contactual organization in such a way as to support and enhance the
other strategic variables of 4P’s in the marketing mix in order to meet the demands
of customers.
Channel strategy is concerned with the entire process of setting up and
operating the contactual organization that is responsible for meeting the firm’s
distribution objectives, whereas logistics management is more narrowly focused on
providing product availability at the appropriate time and place in the marketing
channel. From a channel management standpoint, the most important of these flows
are product flow, negotiation flow, ownership flow, information flow, and promotion
flow. The channel manager must effectively manage all of these flows to achieve the
firm’s distribution objectives.
Basic decision facing the channel manager in the development of the
marketing channel is whether to use intermediaries such as wholesalers and
retailers in the contactual organization and whether facilitating agencies should also
be used. The basis for making this decision rests on the two fundamental concepts
of specialization and division of labor and contactual efficiency.
Channel structure refers to the group of channel members to which a set of
distribution tasks has been allocated. Ancillary structure is the group of institutions
and parties that assists channel members in performing distribution tasks. The
channel manager would like to develop optimum channel and ancillary structures
based on specialization, division of labor, and contactual efficiency.
 Rizal Technological University
Brgy. Malamig, Boni Avenue Mandaluyong City
College of Business and Entrepreneurial Technology
BSBA Marketing Management

Discussion Question 1: Do you agree with Rockauto.coms claim? Might

customer seeking auto parts need other channel options? Explain.
I’ m not really sure if true or not the claim of Rockauto.com because I’m not familiar
about Rockauto.com. It also because base on the feedback of their customers most
of them said that Rockauto.com spare parts have a cheap price or decent prices, lot
of options, they saves money, shipping was reasonable price and fast. They said
also the product that they order arrived to the expected day, they got a great
shipment part and their website was easy to navigate. But if there’s a lot of positive
feedback from their customers to some people have negative feedback to them like
they disappointed because they didn’t get another magnet and rockauto.com have
zero customer service they didn’t response to their customers. Base to those entire
positive and negative feedback of their customers the Rockauto.com claim maybe
true or not.

Discussion Question 3: Do you think mobile commerce via smartphone will

grow rapidly in the future? What or why not?
Yes, I think that mobile commerce via smartphone will grow rapidly in the future
because it creates opportunity to deliver new service to customers allows direct
access to information. As technology continues to progress a new system core being
created, mobile commerce is on a rapid rise. Today most people are constantly on
the go and the ability to conduct business in the palm of your hand wherever you go
is definitely in high demand. It also enables business to offer personalized and
localized content as mobile devices enables to consumer preferences, status and
location.

Discussion Question 5: Why do you think Edward Jones has been able to
“buck the trend” toward multi-channel strategy that would include an online
channel as a key option?
I think Edward Jones has been able to “buck the trend” toward multi-channel
strategy that would include an online channel as a key option because multi-channel
strategy allows to connect with more leads, as well as stay top of mind with your
 Rizal Technological University
Brgy. Malamig, Boni Avenue Mandaluyong City
College of Business and Entrepreneurial Technology
BSBA Marketing Management

customers. And multi-channels throughout a campaign can help you improve

connector, lead conversions. When you’re able to connect with your target audience
in ways that fit their unique needs and preferences they may be more likely to
purchase from you and your company.