Ravi distribution c12

580 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
580
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ravi distribution c12

  1. 1. Marketing Channels & Distribution• BY- RAVIRANJAN KUMAR• PGDM-1ST YEAR• KCCITM
  2. 2. • Distribution is one of the classic “4 Ps” of marketing (product, promotion, price, placement a.k.a. “distribution”). It’s a key element in your entire marketing strategy — it helps you expand your reach and grow revenue.• B2B and B2C companies can sell through a single channel or through multiple channels that may include:•
  3. 3. • Wholesaler/Distributor• Direct/Internet• Direct/Catalogue• Direct/Sales Team• Value-Added Reseller (VAR)• Consultant• Dealer• Retail• Sales Agent/Manufacturer’s Rep
  4. 4. Marketing Intermediaries • • National, State, and Travel Agents Local Agencies • Tour Wholesalers • Consortia and • Specialists Reservation Systems • Hotel Reps • Global Distribution • Concierges Systems • Internet©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  5. 5. Marketing Intermediaries Travel Agents Travel Agents Tour Wholesalers Tour Wholesalers Specialists: Specialists: Concierges Concierges Brokers & Junket Reps Brokers & Junket RepsInternet Internet Hotel Representatives Hotel Representatives Global Distribution Global Distribution National, State, National, State, Systems Systems and Local Tour Agencies and Local Tour Agencies Consortia & Reservations Consortia & Reservations Systems Systems ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  6. 6. The Importance of Marketing Channels• Intermediaries make distribution and selling processes more efficient.• Intermediaries offers supply chain partners more than they could achieve on their own. – Market Exposure – Technical Knowledge/Information Sharing – Operational Specialization – Scale of operation
  7. 7. Channel Efficiency: How Intermediaries Reduce the Number of Channel Transactions
  8. 8. Other Key Channel Functions• Matching Needs with Products• Physical distribution & Logistics• Financing• Risk taking
  9. 9. Customer Marketing Channels Customer Marketing Channels©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  10. 10. Conventional vs. Vertical Marketing Channels©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  11. 11. Franchising • Granting the right to engage in offering, selling, or distributing goods or services under a marketing format which is designed by the franchisor • The franchisor permits the franchisee to use its trademark, name, and advertising • Higher survival rates©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  12. 12. Franchisee – Advantages Marketing Brand Name Support Contracts Reservation systems- Plans and Customers Systems©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  13. 13. Franchisee – Disadvantages • Value of brand name determined by franchiser • Introduction of new products determined by franchiser • Your reliability tied to the rest of the system©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  14. 14. A Franchise is Only as Strong as – Brand Name Market demand for Competitive Advantage the product system©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens
  15. 15. Distribution Strategy Alternatives• How many intermediaries? – Intensive distribution • Stock product in as many outlets as possible. – Exclusive distribution • Granting a limited number of outlets the exclusive right to sell product. – Selective distribution • Somewhere in between Intensive and Exclusive Distribution. Does the company always get to choose?
  16. 16. FACTORS INFLUENCE• The following factors influence the choice of distribution channels by a business. Market factors An important market factor is "buyer behaviour"; how do buyers want to purchase the product? Do they prefer to buy from retailers, locally, via mail order or perhaps over the Internet?
  17. 17. • Producer factors: A key question is whether the producer have the resources to perform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors. Producers may also feel that they do not possess the customer-based skills to distribute their products.
  18. 18. • Product factors: Large complex products are often supplied direct to customers (e.g. complex medical equipment sold to hospitals). By contrast perishable products (such as frozen food, meat, bread) require relatively short distribution channels - ideally suited to using intermediaries such as retailers
  19. 19. THANK YOU

×