mnm2610_tut102_2013_2_e

MNM2610/102/2/2013

Tutorial Letter 102/2/2013 DISTRIBUTION MANAGEMENT

Semester 2

Department of

Marketing and Retail Management

This tutorial letter contains important Information about your module

Bar code

MNM2610

044

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PAGE REFERENCE GUIDE

You must use the page reference guide below to make the necessary changes to the study

guide. Draw a line through all the page references in the study guide and replace it with the pages

indicated in the middle column below. Also take note of the comments that are provided in the

right- hand column.

Study guide Prescribed book Comments

Study unit 1

Section 1.1 Study section 1.1, 1.2 and 7.2 in the prescribed book.

Distribution channel management is defined in the second paragraph of p2, the last sentence on p2 and in section 7.2 in the prescribed book. You must distinguish between a distribution channel and distribution channel management.

Section 1.2 Study section 1.3. -

Section 1.3 Read the section the study guide only.

-

Section 1.4 Study section 1.4, 2.7 and 8.6 in the prescribed book.

The material up to section 1.4.2 (including figure 1.1) actually refers to the channel functions of the distribution channel, while section 1.4.2 (including table 1.2), as well as section 2.7 in chapter 2 refer to channel activities and not to channel functions. Make these changes in your textbook. You may get a question on channel functions or channel activities in the examination.

Section 1.5 Study section 4.3.2 and sec 4.6 in the prescribed book.

-

Study unit 2

Section 2.1 Study section 2.2 up to sec 2.2.2.

You will notice that supply chain management (SCM) and supply chain relationships management (Customer Relations management: CRM) are closely related.

Section 2.2 Study section 2.2.3 and 2.3 in the prescribed book.

Integrate these two sections under the heading: Characteristics of supply chain management.

Section 2.3 Study section 2.4 in the prescribed book.

-

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The value chain is the theory developed by Michael Porter of Harvard Business School. It focuses on the primary and support activities that are performed to create value within an organisation. The linking of the value chains of the individual organisations in the distribution channel is called a value system. This theory is not the same as the one on supply chain management, although they are related.

Section 2.5 Study section 2.6 and sec 3.4, 3.5 and 3.6 in the prescribed book.

Five types of distribution channels can be identified, namely, traditional, business-to-business, international, franchising and the internet.

Section 2.6 - This section in the study guide is incorporated into section 1.4 earlier on in the study guide.

Section 2.7 Study section 2.8 and sec 4.7 in the prescribed book.

Please note: This is an important section This heading in the study guide must read to Environmental factors affecting the choice of distribution channel

Section 2.8 Study section 2.9 and 4.3.3 and 6.2.1 in the prescribed book.

Intensive, selective and exclusive distribution actually refers to the decision regarding the intensity of distribution that an organisation could pursue.

Study unit 3

Please note: This study units main heading should read: Channel participants from a South Africa perspective

Section 3.1 Read the section in the study guide only.

-

Section 3.2 Read the piece below up to section 3.2.1. in the study guide.

-

Section 3.2.1 Study section 1.2.1 and 1.2.2, sec 3.3 to the end of chapter 3 and sec 4.4 in the prescribed book. Include franchising and the internet as channel alternatives (participants).

In the study guide: Above the heading 3.2.1 Wholesalers write the following heading: Channel participants in a distribution channel.

Please note: You must integrate the sections mentioned above, as you may get a question on these channel participants in the examination.


Please note: You may get a separate question on franchising in the examination.

Study unit 4


A different process for designing a distribution channel is discussed in the prescribed book. You must use that layout. However, you must add a fifth step to the process, namely: Step 5: Evaluating channel performance. This step will be discussed further on in study unit 6 of the study guide.

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Please note: This process is an important aspect of this module.


-

Section 4.3 - This section must be incorporated into section 2.7 of the study guide. Please note: These are not techniques but Environmental factors/aspects affecting the choice of a distribution channel. Make this change in your prescribed book.


This section actually refers to step 4 in designing a distribution channel, which is discussed in section 4.1 of the study guide. Section 4.5 in the prescribed textbook on the variables/factors to consider when selecting channel members can be asked separately, or as part of step 4 of the process for designing a distribution channel (discussed in section 4.1 of the study guide above).


-

Study unit 5

Section 5.1 Study section 5.2 up to 5.2.1 in the text book.

This section defines logistics management.

Section 5.2 Ignore this section in the study guide.

-

Section 5.3 Study section 5.4 in the prescribed book

Reducing logistical cost and improving customer service (section 5.5) are also important logistics objectives.

Write a short paragraph on each of the logistics objectives when preparing for the examination.


When a question is asked specifically on logistical costs you must write a page on the topic by touching on the different types of logistical costs (see section 5.5.2 to 5.6 in the prescribed book).

Section 5.5 Study section 5.5.1 and 5.6 in the prescribed book.

-

Section 5.6 - Incorporate this section into section 5.5 of the study guide by drawing a line through the heading of section 5.6.

Take note of the activities of logistics management mentioned below. These five activities are discussed in the next few sections. Please note: You may get a question on one of these activities separately, or a question on all five of them together, that is: Discuss the activities of logistics management

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Order processing can be asked separately, or as part of a longer question on the Activities of logistics management.


Transport can be asked separately, or as part of a longer question on the Activities of logistics management.

Section 5.9 Study section 5.9 and then sec 2.4 in the prescribed book.

Inventory management can be asked separately, or as part of a longer question on the Activities of logistics management.


Warehousing can be asked separately. or as part of a longer question on the Activities of logistics management.


Materials handling can be asked separately, or as part of a longer question on the Activities of logistics management.


You should only be able to explain what integrated logistics is in half a page.

Study unit 6


This section in the study guide must be incorporated into section 4.1 of the study guide.


-


-

Section 6.4 Study section 6.5 -

Section 6.5 Study section 6.6 and 6.8 and 7.10.1 in the prescribed book.

This section must be incorporated into section 4.1 as part of step 5: Evaluation of channel performance. The aspects to study are the performance audit and the three performance criteria of effectiveness, productivity and profitability.


-

Section 6.7 Ignore this section. -


Section 6.9 Ignore this section.


Study unit 7

Section 7.1 Study section 7.3 to the end of 7.8, as well as sec 7.11 in the prescribed book.

Section 7.3 7.5 can be regarded as introductory notes. The main areas of the topic are:

- the types of conflict (section 7.6), - the causes/sources of conflict (section

7.7 & 7.11), - conflict resolution methods (section 7.8).

The use of channel power (section 7.2 in the study guide further on) is actually another method that can be used to address conflict in a distribution channel.

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Section 7.2 Study section 7.9 and 7.10 in the prescribed book.

-


This topic is actually another cause/source of conflict as discussed in section 7.1.

Study unit 8

Section 8.1 Study section 8.2 and 8.3 in the prescribed book.

-

Section 8.2 Study this section in the study guide only.

-

Section 8.3 Study section 8.4 up to 8.4.2 and sec 8.8 in the prescribed book.

-



Kind regards,

DP Theron Department of Marketing and Retail Management UNISA

mnm2610_tut102_2013_2_e

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