Based on the following company's information that is in the in-between parentheses (Marketing Strategic Plan for “NilePure” Water Filter Systems

1- Introduction:
a. Historical Background
Water has always been central to Egyptian civilization, with the Nile River being its lifeline. However, water scarcity and pollution have become increasingly pressing issues in modern Egypt.

b. Introduce Your Business
NilePure is a start-up that recognizes the importance of clean water in Egypt. Launched in 2023, NilePure provides an innovative water filtration system catered to Egyptian households and businesses, ensuring access to safe and affordable drinking water.

c. Products or Services That Your Company Is Offering
NilePure offers a range of water filter systems from simple jug filters to complex under-sink installations that cater to the diverse needs of the Egyptian market. The products feature the latest technology in water purification, including activated carbon and reverse osmosis.

2- Problem Definition
Water contamination in Egypt poses health risks, and bottled water is costly and environmentally unsustainable. There’s a pressing need for an accessible and eco-friendly solution to provide pure, safe, and affordable water.

3- Set Your Marketing Objectives

1. Capture 10% market share within the first two years.
2. Establish brand reputation as a leader in sustainable water solutions.
3. Create educational programs to raise awareness about water issues in Egypt.

4- Provide a Detailed Consumer Analysis Through Segmentation and Targeting Phase
Demographic: Target households and businesses across varying income levels but focusing primarily on middle-class families with health and environmental consciousness.

Psychographic: Cater to consumers who are eco-friendly, health-oriented, and keen on adopting technologies that improve their quality of life.

Geographic: While focusing initially on urban areas like Cairo and Alexandria, the long-term goal includes expanding to rural areas where water quality issues are more prevalent.

5- Set Your Positioning Strategy and Competitive Advantages
a. SWOT Analysis
Strengths: Advanced filtration technology, localized customer service, eco-friendly credentials.
Weaknesses: Entry costs, establishing brand recognition.
Opportunities: Growing health awareness, water scarcity issues, government support for clean water initiatives.
Threats: Established competitors, dependence on imported components.

b. Unique Selling Proposition
“NilePure’s multistage filtration promises the purest drop of water, harnessing the wisdom of the Nile with the innovation of tomorrow.”

6- Set Your Product Distribution Strategy
a. Type of Distribution Channel
A combination of direct sales through an online platform, partnerships with home appliance stores, and distribution through local dealers.

b. Choice of Service Outputs Provision
NilePure will ensure delivery, installation, customer education, and ongoing maintenance services to ensure the best customer experience.

c. Distribution Policy
Initially adopting intensive distribution to make the product as accessible as possible, followed by a selective approach for premium models to build a more exclusive brand image for higher-end products.

d. Analyze Promotional Activities
Invest in a mix of online advertising on social media platforms, sponsored educational content about water quality, participation in trade shows, and community-driven public relations campaigns to build trust and recognition.

7- Conclusion and Recommendations
NilePure is positioned to become an influential player in the Egyptian water filter market through its superior technology, customer-centric approach, and environmental responsibility. To further our reach, we recommend an aggressive digital marketing strategy, partnerships with environmental NGOs, and continuous product innovation to meet the changing needs of Egyptian families and businesses. Furthermore, a focus on consumer education will not only drive sales but contribute to a healthier, more eco-conscious society.), give me as much realistic, made-up information as possible using the following material that is in the in-between parentheses (Marketing channels are the routes
to market used to sell every product
and service that consumers and
business buyers purchase everywhere
in the world .
Why should u be excited about
learning what marketing channels are
There are several reasons:
 1- The Channel is a gatekeeper (someone
who controls the access to something)
between the manufacturer and the end
user .
This means that failing to understand and
proactively manage the actions of ones
channel partners can lessen the effective
reach and attractiveness of the
manufactures products and services.
 2- The channel is an important asset
(advantage) in the company's overall
marketing and positioning strategy, serving
as the main differentiator of the company's
marketing offering from those of its
competitors .
Basic marketing courses teach that
differentiation is fundamental in building
and maintaining a competitive advantage.
Effective differentiation need not to be
defined through product features but can also
occur through innovative channel offerings.
 3- The channel experience strongly affects the
end-users overall perception of brands image
and end-user satisfaction.
 4- Finally even when aware of the value of careful
channel design and management , companies
find it hard to create and maintain a well
working channel design ..
So its useful to develop a framework for
thinking about the problem that will help
companies at every level of channel to
operate more profitably and do better job of
meeting end-users demands and preferences.
A strong channel system is a
competitive asset that isn't
easily replicated by other firms
and is therefore a strong
source of sustainable
competitive advantage.
What is a marketing channel ?
Marketing channel is “a set of
interdependent organizations involved in
the process of making a product or
service available for use or
consumption”.
The definition carries some explanation:
 - It first points out that marketing channel
is a set of interdependent organizations
each channel member depends on the
others to do their jobs. (mutually
responsible)
 What are the channel members
jobs?
The definition makes clear that running a
marketing channel is a process its not
an event ..
Distribution frequently takes time to
accomplish , and even when a sale is
finally made , the relationship with the
end users usually isn't over.
What is the purpose of this
process?
Definition claims that it is making a
product or service available for use or
consumption …
that is , the purpose of channel
marketing is to satisfy the end- users
in the market , might be consumers or
final business buyers.
What is the work of the marketing
channel ?
 The work of channels includes the
performance of several marketing flows.
We use term flow rather than functions or
activities to ensure that these processes
flow through the channel been done at
different points in time by different
channel members.
There are 8 universal channel flows as
they might work in a channel containing
producers, wholesalers ,retailers &
consumers.
 Some flows moves down the channel
(1- Physical Possession,2- Ownership & 3-
Promotion)
 Some flows move up the channel from the
end user ( 4- Ordering & 5- Payment)
 Some other flows can move either
direction
(6- Negotiation , 7- Financing , 8- Risking)
 An important flow that spread all the
value added activities of the channel :
is the flow of information ,
information can and does flow between
every possible pair of channel
members in both routine and
specialized ways; Who belongs to a marketing
channel?
 The key members of a marketing channel are
Manufactures, Intermediaries
( wholesalers, retail, specialized) , and End-users
( who can be business customers or consumers)
There is one channel member that can be
considered the “ the channel captain” ..
The channel captain is an organization that acts
as a prime mover in establishing and
maintaining channel links .The channel captain
is usually the manufacturer of the product or
services .
• Manufacturer
 We mean the producer or originator of the
product or service being sold there is a
difference between branded & private-label
manufacturing:
- Some manufacturers brand their products
and thus are known by name to the end
users even if they use intermediaries to reach
those end-users (ex: coca-cola).
- Other manufacturers make products but do
not invest in branded name for them instead
they produce private label products , either
a manufacturer or retailer puts its own brand
name on the products.
 All of the physical product
manufacturers are involved in physical
possession and ownership flow until the
products leaves their manufacturing sites
and travels to the next channel
member s site.
Manufacturers also engage in
negotiation with the buyers of their
products to set terms of also
participate in the promotion flow of its
product.
•Intermediaries
 The term intermediaries refers to any
channel member other than the
manufacturer or the end-user (individual
consumer or business buyer).
We differentiate among three types of
intermediaries:
Wholesale – Retail – and Specialized
Wholesale intermediaries :
include merchant wholesaler or distributor ,
manufactures representatives , agents &
brokers.
Wholesaler sells to other channel
intermediaries such as retailers , or to business
end-users .
They make their profit by buying at a
wholesale price and selling at the marked-up
price to their downstream customers ,
pocketing the difference between the two
prices.
Manufactures representatives
, agents and brokers do not own
goods they sell , the major flows in
which they take part are promotion
and negotiation in that they work on
selling the products of the
manufacturers they represent and
negotiating in terms of trade.
Retail Intermediaries :
includes department stores,
hypermarkets , stores ..
They sell directly to individual
consumer end users. They may contract
for private label goods , they focus on
collecting an assortment ( collection of
various kinds) of goods that is appealing
to their consumers end-users.
Specialized Intermediaries
are brought into a channel to perform
a specific flow and typically not
heavily involved in the core business
represented by the product sold.
These intermediaries include :
 Finance Companies ( involved in
financing flow)
 Advertising agencies ( participating in
the promotion flow)
 Logistics and shipping firms
( participating in the physical possession
flow)
 Information technology firms (who may
participate in ordering or payment flows)
 Marketing research firms ( generating
marketing intelligence that can be useful
for the performance of any of the flows.
End users
 Finally end users ( either business or individual
consumers) are themselves channel members.
consumers are classified as marketing channel
members cause they can perform channels
flow just as other channel members.
ex: Consumers who shop at hypermarkets
stock up on paper towels are performing
physical possession ,
 they are buying a larger volume of product than
they will use in the near future , they are
paying for paper towels before using them thus
injecting cash and performing financing flow.
 They store it their house lessening the
need for warehouse space at the retailer
and thus taking on part in physical
ownership.
Consumers expect a price cut when they
shop at such a store to compensate for
the channel flow costs they bear
when buying through this channel
relative to buying a single package of
single paper towel at the local grocer; Channel Design : Segmentation
 One of the fundamental principles of
marketing is the segmentation of
the market.
Segmentation means splitting of a
market into groups of end-users who
are :
a- similar within each group , and
b- different between groups.
But similar or different based on
what criterion?
 For the channel manager , segments
are best on the basis of demands for
the outputs of marketing channel.
A marketing channel is more
than just a channel for carrying a
product:
it is also a means of adding value
to the product marketed through
it .
 In this sense , the marketing
channel can be viewed as another
production line engaged in
producing not the actual product
that is sold but the supporting
services that define how the
product is sold .
 These value-added services created by
channel members and consumed by
end-users along with the product
purchased are called :
service outputs
 End users ( final consumers or business
buyers) have varying demands for their
service outputs.
Segmentation for Marketing
Channel Design (Service Outputs)
Marketing channel system design and
management , like the management of
any other marketing activity , requires
starting with analysis of the end-user.
This is true even for a channel member
that doesn’t sell directly for the enduser.
The end- user holds the ultimate
power of the money and therefore
the manufactures demand from the
distributor is only a derived demand
from ultimate end-users.
Only after first understanding the
natures of end-users demands can the
channel manager design a well working
channel that meets or exceeds those
demands.
The most useful demand- side insights
for marketing channel design are not
about what end-users want to consume
but about how end – users want to buy
and use the products or services being
purchased.
In all markets , end-users will have
different preferences and demands for
service outputs that reduce their search
, waiting time, storage and other costs.
Grouping end-users in the market by
demands for service outputs helps us
define potential target market
segments for which to design
specific marketing channel solutions.
End-user Channel Preferences
End-users ( both business to business
buyers & individual consumers)
purchase products and services of
every sort. It seems more than just a
product itself is important to the
buyer.
A particular product or service can be
bought in multiple ways.
It isn't the products that changes but
the method of buying and selling the
product and the associated services
than accompany the product.
its about How the end-user wants to
buy as well as what the end-user
wants to buy ..
different end-users have different
demands and that understanding and
responding to those demands can
create new business for manufactures .
The elements of how the product or
service is bought are called service
outputs ..
Service Outputs are the productive
outputs of the marketing channel ,
over which end–users have demand
and preferences ..
End- users will prefer to deal with a
marketing channel that provides a
higher level of service outputs.
A General List of Service Outputs is :
 Bulk-breaking
 Spatial Convenience
 Waiting time ( or quick delivery)
 Variety and Assortment
 Customer Service
 Information Provision
These six outputs cover major
categories of end-users demands for
different channel systems.
1- Bulk –breaking
Refers to end-users ability to buy their
desired (possibly small) number of
units of a product or service even
though they may be originally produced
in large , batch-production lot sizes.
When marketing channel system allow
end-users to buy in small lot sizes ,
purchases can more easily move
directly into consumption , reducing
the need for the end-user to carry
unnecessary inventory.
If end-users must buy in larger lot sizes
( benefit from less bulk-breaking) some
inequality between purchasing and
consumption patterns will emerge.
Burdening end-users with product
handling and storage costs.
The more bulk breaking the channel
goes , the smaller the lot size endusers can buy and the higher the
channels service output to them.
This in turn can lead to a higher price
for the end-user to cover the costs of
providing small lot sizes.
2- Spatial Convenience
Provided by market decentralization
(the act of extending over a wider scope) of
wholesale and /or retailer outlets
increase consumers satisfaction by
reducing transportation requirements
and search costs.
Community shopping centers and
neighborhood supermarkets , gas
stations are but few examples of
channels designed to satisfy consumers
demand for spatial convenience.
3- Waiting Time
Is the time period that the end-user
wait between ordering and receiving
goods or service .
The longer the waiting time , the more
inconvenient it is for the end –user, who
is required to plan or predict
consumptions far in advance.
Usually the longer that end-users are
willing to wait , the more compensation
( the lower the prices) they receive.
Quick delivery is associated with higher
price paid.
4- Breadth of Variety
The wider the breadth of variety or the
greater the depth of product assortment
available to the end-user , the higher
the output of the marketing channel
system.
And the higher overall distribution costs
because offering greater assortment and
variety typically means carrying more
inventory .
Variety describes different classes of
goods making up the product offering
that is the breadth of product lines.
 The term assortment refers to the
depth of product brands or models
offered within each product category.
 Ex: Stores like Carrefour have limited
assortments of fast moving , low prices
items across a wide variety of
household goods, ready-to –wear,
sporting goods, auto accessories …
In contrast a specialty store dealing
mainly in home audiovisual electronic
goods would have a very large and
complete line of radios , tape recorders
offering the deepest assortment of
models, sizes , prices and so on.
5- Customer Services
Refers to all aspects of easing the
shopping and purchase process for the
end-users as they interact with
commercial suppliers ( for business to
business B2B purchases) or retailers
(for business to consumer B2C purchases).
6- Information Provision
Refers to education of end-users about
product attributes or usage capabilities
or pre- purchase and post-purchase
services.
The provision of information is extremely
important service output to the
consumer.
Ex: The business PC buyers values
presale information about what
products to buy , in what combinations ,
with what service packages as well as
information if and when or systems fail.
In general .. The greater the level of
service outputs demanded by
meaningful segments of end-users , the
more likely it is that intermediaries will
be included in the channel structure .
Ex: if targeted end-users wish to purchase
in small lot sizes , there are likely to be
numerous intermediaries performing bulkbreaking operations between mass
producers and the final users.
 If waiting time is to be reduces then
decentralization of outlets must follow,
and therefore more intermediaries will
be included in the channel structure .
As services outputs increase ,
therefore costs will increase and these
higher costs will tend to be reflected in
higher prices to end-users.
Note : that prices hasn’t been listed as a
service output , this is because price is
what is paid to consume the bundle of
product service outputs .. price is not a
service that is itself consumed.
End-users routinely make tradeoffs
among service outputs, products
attributes and price and measure which
product/service bundle (at specific
price) provides the greatest overall
satisfaction.
That’s why price is considered
something different from a service
output – just as physical product
attribute is not a service output yet still
affects an end-users overall utility.
One shouldn’t be inflexible in defining
service outputs because different product and geographic markets my naturally
demand different service outputs; Service outputs clearly differentiate
the offerings of different marketing
channels,
and the success and persistence of
multiple marketing channels at any one
time suggests that different groups of
end-users value service outputs
differently.
To effectively apply the concept of
service outputs to channel design, we
must consider the issue of channel
segmentation according to
service outputs demand
This means segmenting the market
into groups of end-users who differ
not in the product (s) they want to buy
but also how they want to buy them.
At the very high end of service
valuation in any market is a ( usually
small) segment of buyers who are
both very service-sensitive and
very price-insensitive and who
therefore be profitably served
through specialized channel.
 Ex: One such product category is men's clothing
(Albert Karoll) a custom tailor in Chicago area,
sells fine custom men's clothing by visiting his
customers rather than making them visit him
.
 His target buyer segment clearly has a very
high demand for spatial convenience , saving
time and money and getting the same quality.
 The target customer also values custom clothing
made to order – the ultimate is assortment
and variety , also quick service and delivery..
 Karol's target customer is a man whose
most scarce asset is time , and from
this flow the customers extremely high
demands for service outputs and his
low price sensitivity .
 Karol doesn’t seek to serve every man
who would like to buy a suit , instead
he has carefully crafted a business
centered around the provision of
service rather than just the sale of
high end piece business clothing.
From marketing research perspective :
It is essential to generate a
comprehensive understanding of all
relevant service outputs demanded by
different end-users .
This is accomplished by conducting:
- qualitative focus groups or
- one-on-one exploratory interviews ,
to generate a list of all service outputs
that apply to particular product and
market in question.
In general the channel segmentation
process should be carefully designed to
produce group of buyers who :
 a- Are similar within a group,
 b- Are different between groups , and
 C- Differ on dimensions that matter for
building a distribution system.
Its not enough to ask respondents
their preference for various
outputs , given free choice , most
individuals are likely always to prefer
more of all the service outputs.
To obtain information that will be
useful in designing marketing
channels to meet the key needs of
target segments , it is essential to
understand how end-users are
likely to behave in market place.
Researchers can do this by making
respondents trade off one attribute
of the channel for another .
ex.. Spatial Convenience versus Low
Price versus Extensive Product Variety
versus Expert Sales Assistance.
Research tools are used to create the
necessary trade-off data (An exchange
of one thing in return for another, regarded
as more desirable).
Meeting Service Output Demands
One of the basic rules in marketing is
that the seller should seek to identify
and then meet the need of its endusers in the marketplace.
In the marketing channel strategy this
means creating and running a
marketing channel system that
produces service outputs demanded by
target end-users segments ..
However being responsive service
output demands when designing
marketing channels can be very
expensive and time consuming.
The question arises ,
whether there are market conditions
under which a channel manager can
profitably serve a segment in the
market without fully meeting the
service output demands characterizing
them?
The answer has multiple parts by
nature, the key factors determining
whether and how quickly to respond
to knowledge about unmet service
output demands include :
1- Cost
Sometimes its expensive to meet
expressed service output demands.
Channel members must decide whether
or not to provide the service..,
and if so ,
whether to cover that cost for
consumers or to charge the
consumer for high service
provided .
If the channel covers the cost for the
consumers , its profit per sale drops ,
but if it charges consumers for the high
cost of providing high service levels ,
its customer base and sales volume are
likely to drop.
Channel members have to decide
which is lesser of the two points.
2- Competitive
The question here is whether existing
competitors can beat this channels
current service output provision level.
It may be that no competitor currently
in the market exceeds this channels
service output levels ,
therefore the added cost of improving
service would not lead to any change
in market share from current market
sales for the channel in question
(although it could lead to an increase
in total market sales by attracting
new buyers who were not willing to
buy at the previously lower overall
service levels)
3- Ease of entry
Competition comes not from the firms
currently in operation but also from
potential competitors , or entrants to
the industry.
A channel that fails to meet end-user
segments demands for service outputs
may find itself surprised by a new
competitor with better technologies for
meeting those demands.
Ex: the challenge facing distributors of
music CDs in today's market where
entrants offering online downloads of
music provide quicker delivery and
more spatial convenience ( downloads
now – done at home)
Also offer the assortment the
consumer wants ( it is possible to
download the song or songs the
consumer wants without buying the
entire album ).
4- Other Elements or Excellence in
the Market Offerings.
The marketing channel is one part of
the marketing mix.
a truly superior product or
a low price can lead end-users to buy
through a channel that does not quiet
meet their service outputs demands.
The role of service output demand
analysis in marketing channel design
After segmenting the market and
identifying each channels segment
distinct service output demands,
the channel manager can integrate
these insights into the overall
marketing channel design and
management plan.
Targeting a channel segments mean
focusing on that segment with the goal
of achieving significant sales and
profits from selling to it.
Segmented service output demand
information will help the channel
manager decide which segments offer
the greatest relative growth and
profit opportunities for targeting.
Service output demand analysis can
identify new market opportunity that
leads to the development of entirely
new ways to sell to a particular
segment .
 Ex: is fandango. COM.. A business
formed by 7 of the 10 largest movie
exhibitors in the united states to sell
movie tickets thorough a different
channel ; online – or by phone.
 Instead of going to the movie theater the
evening one want to see a particular
movie. The buyer can go online and
purchase in advance a ticket for a
small fee per ticket.
 This new channel provide consumers
a lower waiting /delivery time
(cause there is no wait at the theater)
 Higher spatial convenience
( searching online).
 And a very broad assortment and
variety
( cause it sells tickets to 70% of all
theaters in USA)
Service output demand analysis
performed by channel manager should
be used for both positioning (channel
design) and targeting purposes.
It is wise to perform the demand side
analysis before proceeding to the
supply-side decisions .
Done correctly an analysis of target
segment service output demands can
be the foundation of higher profits
that come from high sales to loyal
end-users; Manufactures , wholesalers and retailers
participate in marketing channels to
create the service outputs
(bulk – breaking ,
quick delivery,
spatial convenience, and
assortment and variety) demanded by
their target end-users.
Just as a production factory produces
physical products ,the members of
a marketing channel are also
engaged in productive activity.
The productivity received from the
value end-users place on the service
outputs resulting from channel
efforts.
The activity or functions that produce the
service outputs demanded by end-users areour specific topic here , we call these
activities channel flows .
Identifying what channel flows are
performed in the marketing channel , by
whom and at what levels is helpful in
several aspects of channel management:
 First, detailed knowledge of the flow
performance in the channel helps the
channel manager diagnose and cure
shortcomings in the provision of service
outputs.
 Second, the concept of channel flows
can be used to design a new channel or
revise an existing channel to minimize
the cost of providing desired service
outputs.
 Third, knowing which channel
members have experienced the cost
of performing what flows , helps in
allocating the profits of the channel
equitably ( divided equally).
This help channel members preserve
a sense of fairness and cooperation
and thus prevent channel conflicts.
Channel flows defined
Eight Generic Channel Flows
Every flow not only contributes to the
production of valued service outputs
but also carries an associated cost.
*for instance: physical possession refers
to all channel activities concerned with
the storage of goods, including their
transportation between two channel
members .
The cost of running warehousing and
transportation from one location to
another are thus physical possession
costs.
Marketing flows in channels

Producers



wholesalers retailers
Consumers
Industrial
And
household
physical
possession
ownership
promotion
negotiation
Financing
Risking
Ordering
Payment
The arrows show flows of activity in the
channel ..each flow carries a cost.
Some examples of cost of various flows :
Market flow Cost represented
Physical possession Storage and delivery
costs
Ownership Inventory carrying
costs
Market flow Cost presented
Promotion Personal selling ,
advertising , sales
promotion, publicity ,
public relations costs.
Negotiation Time and legal costs
Financing Credit terms, terms
and conditions of sale
Risking Price guarantees ,
warranties , insurance
, repair and after sale
services costs.
Market flow Cost represented
Ordering Order-processing
costs
Payment Collection and debt
costs.
 1&2- The cost of physical possession are
distinct from costs of ownership( the second
flow)..
-- When a channel member takes title to goods
it bears the cost of carrying the inventory.
*In many distribution systems such as
commercial pc sales, physical possession and
ownership commonly move together through
the channel .
*-- One other channels product is
physically held by a retailer ( an art
gallery owner) but is owned by a
manufacture ( e.g. painter or sculptor)
the manufacture gives up ownership of
the product only when it is sold to final
buyer.
Despite the fact that physical
possession and ownership by definition
are separate channel - flows , they
travel together in any channel systems.
 3- Promotion flows in marketing
channels can take many forms ,
including:
- Personal Selling by an employee or
outside sales force( such as brokers) ,
- Media Advertising ,
- Sales Promotions ( either to the trade
or the retail) ,
- Publicity and other
- Public Relations activities .
Promotional activities are designed
to:
- increase awareness of the product
being sold ,
- to educate potential buyers about the
product features and benefits and to
- persuade potential buyers to actually
purchase.
Promotional efforts may also have the goal
of increasing overall brand equity
of the product which could increase sales in
the future.
 4-The negotiation flow occurs
whenever terms of sale or of the
maintenance of the ongoing
relationships with the market are
discussed and decided.
The costs of negotiation are measured
mainly in the cost of personnel time
spent in negotiating and the cost of
legal council.
 5- Financing costs are inherent in
the terms of sale from one level of the
channel to another or from the channel
to the end-user.
Financing costs maybe carried by the
manufacturer or an intermediary or
even by an outside channel member
that specializes in theses activities such
as a bank , or credit card company.
 6-Many sources of risking exist in the
marketing channel , Long-term
contracts between a distributor and a
business end –user may specify price
guarantees that .
Price guarantees are sometimes offered
to intermediaries who hold inventory ,
incase the product market price falls
before the inventory is sold , such a
practice moves risks from
intermediary's shoulders to those of the
manufacture.
 7- Insurance and after-sale services
activities also represent costs due to
risky future events( parts failure ,
accident ) ,
in general either a manufacture or a
reseller may bear the cost of these
activities.
 8- Ordering and payment flow costs
are the total costs carried in the actual
purchase of and payment of the product . Many innovations are occurring today in
the performance of these flows :
*for instance Automatic replenishment
(fill, add new stock) is an automated
recording system used by many
retailers in which a computer system
tracks levels of inventory in the retailer
system and automatically sends a
replenishment order to the
manufacturer .
This process reduces ordering costs as
well as improving in-stock percentages.
This knowing which service outputs are
demanded by target end-users and at
what intensity helps channel manager
control the total costs of running
the channel through the performance of
only those flow levels that create
valued service outputs.
Who does which flow?
 The channel manager needs an
accurate accounting of the channel's
activities in order to evaluate the
efficiency and effectiveness of flow
performance.
 In the longer term , failure to
recognize costly but valuable channel
flow performance by any channel
member can lead to inappropriate
rewarding of channel flow performance
and eventually to serious channel
conflicts.
Which channel members is/are
involved in the performance of what
channel flow (s) is not always obvious,
yet another problem rises when the
channel captain fails to recognize
channel flow performance either by a
channel intermediary or in fact by the
end users.
Describing the Current Channel with
the Efficiency Template
The first use to which we will put the
concepts of channel flows is to
describe the productive activities of a
currently operating channel .
To this we introduce the :
“Efficiency Template” , a tool to
measure the costs carried and the
value added by each channel member
in it performance of channel flows.
The efficiency template is used to
describe :
 -The types and amounts of work
done by each channel member in the
performance of the marketing flows.
 - The importance of each channel flow
to the provision of demanded
consumer service outputs,
 The resulting share of total channel
profits that each channel member
should obtain.
The efficiency tool is very useful tool for;
- codifying the bearing of cost and adding
value to the channel of each channel member.
- The efficiency template should be
channel – specific , that is a separate
efficiency template must be created for each
channel used to sell the product.
- The efficiency template account for channel
costs carried by end-users as well as other
channel members.
Its uses are many :
 - It reveals how the costs of particular
flows are shared among channel
members.
 - It shows how much each channel
member contributes to the overall
value creation in the channel.
 - It reveals how important each of the
flows is to total channel performance .
 - It can be powerful tool in explaining
current channel performance and
justifying changes that channel
managers wish to make to currently
operating channels.
THE EFFICIENCY TEMPLATE
WEIGHTS FOR FLOWS: PROPORTIONAL FLOW PERFORMANCE OF
CHANNEL MEMBER:
COSTS* BENEFIT
POTENTIAL
(High,
Medium, or
Low)*
FINAL
WEIGHT*
1 2 3 4
(end-user)
TOTAL
PHYSICAL
POSSESSION**
100
OWNERSHIP 100
PROMOTION 100
NEGOTIATION 100
FINANCING 100
RISKING 100
ORDERING 100
PAYMENT 100
TOTAL 100 N/A 100 N/A N/A N/A N/A N/A
NORMATIVE
PROFIT
SHARE***
N/A N/A N/A 100) while following the following outline that is in the in-between parentheses (Conduct a marketing strategic plan for a (product,
service, idea) of your choice and analyze the distribution
and retail management process.
Outline
 1-Introduction:
a-Historical Background
b-Introduce your business
c- Products or services that your company offering

 2- Problem Definition.

 3-Set your marketing objectives.
4-Provide a detailed consumer analysis through
segmentation and targeting phase. (Demographic,
psychographic, geographic.

 5-Set your positioning strategy and competitive
advantages.
a - SWOT Analysis.
b -Unique Selling Proposition.
 6- Set your product distribution strategy.
a- Type of distribution channel .
b- Choice of Service outputs provision.
c- Distribution Policy. (Intensive / exclusive distribution)
d- Analyze Promotional activities (media advertising ,
sales promotions publicity and other public relations
activities) .
 7- Conclusion and Recommendations.).