Distribution

1. Distribution Channel
By-
Poornima Singh Pawar

2. Distribution Channels
 A distribution channel - set of
independent organizations involved in the
process of making a product or service
available to the consumer or business user
 Used to move the customer towards the
product or the product to the customer
 Organic development of an industry

3. Place = Distribution
 The 4Ps
 Product, Price, Place, Promotion
 What the “P” of Price is to Revenue
Management, the “P” of Place is to
Distribution

4. Distribution Channel Functions
 Information: consumer behavior “search
stage”
 Promotion: messaging
 Negotiation: price and other terms
 (how is this done online?
 Physical distribution: think e-tickets?
 Prospecting: finding, communicating, and
tracking prospective buyers

5. Digitalization and Connectivity
 Digitalization - converting text, data,
sound, and image into a stream of bits
that can be dispatched at high speeds
from one platform to another
 Connectivity - building networks
connecting people and companies;
social and mobile convergence

6. Direct versus Indirect Channels
 Direct Channels
 Employed sales staff
 National sales staff
 Brand.com
 Voice/CRS/Mobile
 Indirect – Intermediaries
 Why use them?
 Why so many of them?

7. Travel AgentsTravel Agents Tour WholesalersTour Wholesalers
ConciergesConcierges Specialists:
Brokers & Junket Reps
Specialists:
Brokers & Junket Reps
InternetInternet Hotel RepresentativesHotel Representatives
Consortia & Reservations
Systems
Consortia & Reservations
Systems
Global Distribution
Systems
Global Distribution
Systems
National, State,
and Local Tour Agencies
National, State,
and Local Tour Agencies
Marketing Intermediaries
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens

8. E-Commerce & E-Marketing
 E-commerce involves buying and selling
processes supported by electronic means,
primarily the Internet
 E-marketing is company efforts to
communicate about, promote, and sell
products and other services over the Intranet;
also web or Internet Marketing
 Not easy to separate but different issues

9. E-Commerce Domains
 B2C (business to consumer)
 Branded websites
 B2B (business to business)
 Passkey
 C2B (consumer to business)
 User groups
 C2C (consumer to consumer)
 Blogs; review sites are blends of above