NU DASMARINAS

School of Business, Management, and Accountancy Major in Financial Management

Course Code : BMDISTCX Section : MAR223

Course Instructor: Ms. Maria Aileen N. Candelaza
Members:
Mico, Mike Railey Emil M.
Vierneza, Francis Dale
Gonzales, Fiona Gem

I. Channel issues for Discussion

1. Growth in online retail sales has outstripped conventional sales in retail stores. This online
sales growth might be enhanced significantly by the latest online sales phenomenon of mobile
commerce – shopping via mobile smart phones. But so far, of the almost 50 million smartphone
users that have access to the Internet, only 7 million (under 15%) have bought something
through their phones.
Question: Do you think mobile commerce via smart phone will grow rapidly in the
future? Support your answer.
Answer:
Yes, smartphone-based mobile commerce is expected to grow rapidly in the future.
While challenges such as issues related to privacy and security remain, the overall trend
indicates that smartphone-based mobile commerce will keep expanding rapidly in the future.
Mobile commerce is appealing to consumers because it provides an easy method to
shop, pay, and get services from anywhere.
2. One of the major themes presented in our lesson is the need for choice as to how products
and services are made available to customers. Thus, multi-channel strategies that provide a
wide range of channels in online channel option have an Internet-based online channel option
have become imperative. Yet there are very successful firms that take a virtually opposite view
by purposely limiting choice. A case in point is Edward Jones, a financial services company with
the largest network of brokerage offices in the U.S. It has a website that its customers can visit
but it does not offer the option of trading online. Instead, all transactions must take place
through their broker. Even with this single channel strategy, the company is still growing and is
very profitable.
Question: Why do you think Edward Jones has been able to “buck the trend” (an idiomatic
expression that means to go against or defy a prevailing or commonly observed pattern or
trend) toward multi-channel strategy that would include an online channel as a key option?
Answer:
Edward Jones has been able to “buck the trend” by focusing primarily on an one-
channel strategy, avoiding the inclusion of a prominent online channel for a variety of reasons,
including the fact that the finance sector is heavily regulated, and providing online financial
services entails navigating complex regulatory requirements. Edward Jones may have chosen to
avoid the difficulties and risks of expanding into digital channels. Edward Jones may distinguish
its own from opponents who are heavily investing in online channels by maintaining a single-
channel approach. This strategy of differentiation may enable them to stand out in the market.
3. Susan, a marketing / distribution manager for a major consumer package goods
manufacturer, is very upset with the sales results of the new oat brand cookies her company
introduced 3 months ago. She believes that an important factor in the lackluster sales results is
that too many supermarkets across the country were not featuring the product in giant end-of-
aisle displays (a marketing strategy commonly used in retail stores and supermarkets. It involves
placing promotional products ate the of the store aisles, typically near the intersection of
multiple aisles or near high-traffic areas. The goal of an “end-of-aisles display is to draw the
attention of shoppers and encourage them to make impulse purchases or explore new
products.) recommended by the manufacturer. “I feel like hitting those store managers over the
head for not featuring this product – if only I had more control over these guys,” remarked
Susan.
Question: Discuss the situation in the context of the definition of marketing channel presented
in our lesson.
Answer:
In this context, market channels can be defined as the external, predetermined company
that is run by organisational leadership to achieve the circulation goal. Susan, a marketing
executive for a consumer-packaged goods manufacturer, is unhappy with the revenue numbers
for the newly introduced oat.

4. It was mentioned that specialization and division of labor is the fundamental basis for
allocating distribution tasks.
Question: Can the channel manager make decisions about suing intermediaries and facilitating
agencies solely on that basis?
Answer:
Suing intermediaries or facilitating agencies is a legal matter that usually necessitates
discussion with legal experts and careful consideration of various factors such as contractual
agreements, legal rights, and potential consequences. Although a channel manager may provide
information and recommendations, the final decision typically takes place by the business’s
legal team or higher-ups after an in-depth assessment of the situation. Making such decisions
with no legal advice and proper assessment can be dangerous.

5. Multi-channel strategy that provides more choice to customers has become a virtual
imperative today for more and more firms.
Question: What are some of the key challenges firms face in pursuing multi-channel strategy?
Answer:
To be successful in multi-channel marketing, you must be prepared to deal with
challenges as they arise. You must have a clear strategy in place before you need it.
Cross-channel service is one of the most difficult marketing challenges for most ecommerce
business owners while involves multiple channels is maintaining advertising and contacting
consistent across different channels. It’s much easier to control and keep track of the messages
and branding you’re using to compel people to buy when you only sell your products through
one channel—usually your own website. When you start investing in multi-channel, you’re
forced to manage consistent messaging and branding across a number of channels (Amazon,
Ebay, Etsy, Jet, and so on) that all have different requirements, nuances, and best practises.
Product availability is a critical risk factor to consider. Articles should be available for
buying online as well as in person. This requires a cross-channel merchandise management
system. Similarly, a lack of logistical expertise frequently stymies the growth of multichannel
trade. Products must now be delivered to the client or retailer quickly and affordably. Customers
take advantage of multichannel distribution's channel-hopping capability due to unified product
presentation. This means that people may get ideas online but then buy from a stationery store.
It is essential to ensure that the product is always available and that the customer's
expectations are met. The article's description, price, and appearance must all be identical.
II. Multi-Channel
Context Diagram:
With the use of context diagram, provide an example of the following:
 A. Effective and efficient multi – channel distribution of a specific company. (5 points)
B. Ineffective and inefficient channel of distribution of a specific company. (5 points)
2. Central Problem (Context Diagram):
A. Explain the reasons (at least 5) why you have chosen the company in letter A (5
points)
B. Explain the reasons (at least 5) why you have chosen the company in letter B (5
points)

AREAS OF CONSIDERATION: (5 points)

More than 80% of the revenue of MNC’s (Multi-national Corporations) in the Philippines comes
via indirect channel.
Question: In channel of distribution context, what do you think are factors (areas to be
considered) that limits and challenges MNC’s in penetrating larger market in the Philippines?
Answer: