Managing Distribution Channels

MKT306

Worksheet Chapters 6 and 8

Designing the Market Channels
Target Markets and Channels Design Strategy

Section 1: Essay Questions

1. What is meant by a channel design?

2. Explain the steps of channel design decision making.
3. There are many factors that may have to be considered when analysing particular
markets. Discuss

Section 2: Cases
1. There is an old saying that predates the marketing concept by perhaps 100 years: “The
customer is king.” This is usually interpreted to mean that businesses should remember
that the only reason they are in business is to serve the customer, because without
customers there would be no business. This expression is seldom related to the design of
marketing channels. Yet, in the long run, is it not the “customer king” who decrees the
structure of the marketing channels that ultimately develop? Do you agree or disagree?
Discuss the statement using several examples for or against.

2. Airports may be where the real action is in retailing. At least this is the impression one
might get by observing some recent developments. Bloomingdale’s was one of the first
major retailers to open a branch in an airport when its clothing and gift boutique opened
at JFK International Airport in New York. Now FAO Schwartz, a famous toy retailer, has
opened branches in several airports, while McDonald’s and Burger King are also moving
in. A number of other major retailers may follow in airports throughout the United States.
Does this make sense? Discuss in terms of the relevant market dimensions that might
underlie such developments.

Reference:
Rosenbloom, B. (2013). Marketing Channels: A management View (8th ed., pp. 3-500). Canada:
South-Western, Cengage Learning.

A.L. Rehab El-Bordiny 1