Professional Documents
Culture Documents
Chapter13 PDF
Chapter13 PDF
Chapter Objectives
1. What are the different kinds of marketing channels. 2. Distribution Channel in Tourism and Hospitality Industry.
a. Define the terms of distribution mix and travel trade. b. List the major travel trade intermediaries. c. List steps involved in marketing to the travel trade.
Objective 1
1. What are the different kinds of marketing channels?
Marketing Channels
Wholesalers Retailer
Marketing Channel
Agent
Producer
Retailer
Consumer
Producer
Wholesaler
Retailer
Consumer
Producer
Agent
Retailer
Consumer
Customers
The manufacturer and consumer deal directly with each other. E.g. Factory shop, pick-your-own fruit farm and door-to-door selling.
Retailer
Customers
Very popular foe larger retailers because they can buy in large quantities, obtaining a special price (by negotiating the prices) and delivery arrangements.
4. Producer-agent-wholesaler-retailer-consumer
Producer Agent Retailer Consumer
The longest and most indirect channel. This model is widely used by small organizations who trying to sell their products in remote markets or when the manufacturer is trying to enter to unknown expert market. Manufacturer chose the agent who have local knowledge, contact and expertise in selling into the country. Agent gets commission from manufacturer. The problems of this channel is manufacturer have to trust the quality of the agents know ledge, commitment and selling ability.
Tour Wholesalers
Carriers, Suppliers, Destination Marketing Organizations Lodging Restaurant/Food Service Airline/rail/bus/ferry Cruise Line Rental Car Attractions Casino DMO
Specific Roles and benefits of Travel Trade Intermediaries for tourism and Hospitality Industry
1.) Retailing the services suppliers, careiers, DMOs at location convenient for travelers. 2.) Expanding the distribution network for tourism and hospitality products. 3.) Providing specialized, knowledgeable advice to travelers on destinations, prices, facilities, schedules, and services. 4.) Assembling vacation. Holiday packages by bringing together an array destination and the services of suppliers and carriers at all inclusive price. 5.) Organizing and coordinating convention, conferences, and meeting for associations, corporations, and other organization. 6.) Operating and guiding group tour.
(1)
Who negotiate price and block the space with supplier and carriers and markup to all elements to determine an all-inclusive price. They bought product in bulk or bulk buying and resold to customers through retail agency.
A tour Operator = Tour Wholesaler!!!? Inbound Tour Operator specialize in providing local service to other tour operators in specific nation or destination.
(2)
Convention/meeting planners
Convention and Meeting = MICE (Meeting,
incentives, Conventions, and Exhibitions).
Positioning approach
Establish a distinctive image or position in travel trade.
Marketing objective.
5% increase in the number of travellers.
(1)Trade Advertising. (2) Directories and Computerized Databased. (3) Personal and Telephone Selling. (4) Trade Sale Promotion.
a. b. c. d. Familiarization Trip or Farms. Contest, Sweepstakes, and Incentive Programs. Specialty Advertising Giveaways. Trade Shows.
(5) Merchandising and Brochures. (6) Public Relation and Publicity. (7) Cooperative Marketing (Partnership). (8) Website Access.