This document discusses distribution channels and how they are used to move products and services to consumers. It defines distribution channels as independent organizations involved in making products available, and notes their role in guiding customers toward products. The document also discusses how digitalization and connectivity are impacting distribution, comparing direct channels like company websites versus indirect channels like intermediaries. Finally, it outlines different domains of e-commerce like business-to-consumer and business-to-business and how they relate to distribution online.

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