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
MNM2610/102
2

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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Section 2.4 Study section 2.5 in the
prescribed book.
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.
Section 3.3 Study section 3.5 in the
prescribed book.
Please note: You may get a separate question
on franchising in the examination.
Study unit 4
Section 4.1 Study section 4.3 in the
prescribed book.
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 4.2 Study section 4.6 in the
prescribed book.
-
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.
Section 4.4 Study section 4.5 in the
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).
Section 4.5 Study section 4.8 in the
prescribed book.

-
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.
Section 5.4 Study section 5.5 in the
prescribed book.
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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Section 5.7 Study section 5.7 in the
prescribed book.
Order processing can be asked separately, or
as part of a longer question on the Activities of
logistics management.
Section 5.8 Study section 5.8 in the
prescribed book.
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.
Section 5.10 Study section 5.10 in the
prescribed book.
Warehousing can be asked separately. or as
part of a longer question on the Activities of
logistics management.
Section 5.11 Study section 5.11 in the
prescribed book.
Materials handling can be asked separately,
or as part of a longer question on the Activities
of logistics management.
Section 5.12 Study section 5.12 in the
prescribed book.
You should only be able to explain what
integrated logistics is in half a page.
Study unit 6
Section 6.1 Study section 6.2 in the
prescribed book.
This section in the study guide must be
incorporated into section 4.1 of the study guide.
Section 6.2 Study section 6.3 in the
prescribed book.
-
Section 6.3 Study section 6.4 in the
prescribed book.
-
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 6.6 Study section 6.7 in the
prescribed book.
-
Section 6.7 Ignore this section. -
Section 6.8 Ignore this section. -
Section 6.9 Ignore this section.
Section 6.10 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.
-
Section 7.3 Study section 7.11 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.
-
Section 8.4 Ignore this section. -
Section 8.5 Ignore this section. -


Kind regards,


DP Theron
Department of Marketing and Retail Management
UNISA