Republic of the Philippines

CEBU TECHNOLOGICAL UNIVERSITY

BARILI CAMPUS
Website: http://www.ctu.edu.ph
Email: romeolepiten03@gmail.com
Phone +6332 513 0641/516 1742

Activity No. 4
Name: Tipay,Steven Tipay

Course & Section:BSHM 2B

Subject Code & Description:THC 216

Tourism Distribution Channels

Instruction:
Read and study posted learning material in the google classroom. Please refer module 4 and
answer below question.
▪ Give at least five example of direct and indirect distribution channels in our country or
Asia.
▪ Discuss the company or organization background of each institution.
▪ Site some important feature of their business and how they contribute to the tourism and
hospitality industry.

Indirect:

Indirect:

1. Affiliates- a company that sells products or services for a commission. A common internet-
based sales strategy in which third-party intermediaries link companies to affiliate sellers.
Companies will often create campaigns for their products that affiliates will promote. This
structure is efficient because affiliates are paid only when a sale is made.

2. Resellers- similar to affiliate selling and common with sales of tech products, such as mobile
devices and software. Resellers often interact with the customer in face-to-face sales on behalf
of a company. A good example is how you might buy a smartphone at a service provider's store
rather than the manufacturer's store.

3.Independent sales representatives/agents- these independent sales reps are basically hired
guns. Their appeal is that they are easily scaled up or down, which means lower overhead. A
good example of this is insurance agents who are paid on commission.

4. System Integrators- commonly found in business-to-business product or services sales,

system integrators are often consultants who also pitch solutions to customers. For example, a
company that offers both tech advice and hardware/software products may utilize a system
integrator in a hybrid consultant/sales role.

5. Online App- If they have their own ecommerce platform, they're pure direct-to-consumer
sellers. Platforms such as Shopee, Lazada, MerryMart and Pickaroo are considered direct to
consumer (DTC) marketplaces. If you sell on these platforms, you're a DTC marketplace seller.
 Republic of the Philippines
CEBU TECHNOLOGICAL UNIVERSITY
BARILI CAMPUS
Website: http://www.ctu.edu.ph
Email: romeolepiten03@gmail.com
Phone +6332 513 0641/516 1742

Direct:

1.Selling at Manufacturer’s Plant- It is one of the earliest, easiest and cheapest methods of
distribution of goods and known as direct selling. The goods are sold by the producers directly
to the consumers under this system, and it is usually preferred in case of perishable products
like bread, milk, ice-cream, fish, meat, egg, vegetables and agricultural products, etc. These
products are directly sold to the consumers for the reason they lose their value or become unfit
for use if they are stored or transacted for a long time.

2.Door-to-Door Sales- Manufacturer employed salesmen for a door-to-door marketing. They

move door-to-door to introduce the new product at the door of a customer. Dealers may not
have knowledge of the goods or they require a good margin of profit or they do not want to stock
unknown products; for them this system is good. Selling under this system may be costly but
when the market is known, it can be reduced. But, at the first stage, when the market is unaware
of the product, even at higher cost, this system is better.

3.Sales by Mail Order Method- Here the post office plays a significant role and it is known as
shopping by post or mail order business or selling by post. It is an impersonal selling, branding,
grading, standardising, packaging etc., facilitating the growth of this system. By Post, customers
are approached by sending catalogues, price lists, pamphlets, etc. Advertising adds further
speed in the selling; e.g., books, copies, Magazines, Medicines, watches, toys, small
appliances, clothes, seeds, jewellery, etc.
4.Sales by Opening Own Shops- The producers of perishable and non-perishable goods sell
their products to customers, by opening their own retail shops. Manufacturers can push the
goods quickly through retail shops and can offer satisfactory service to customers, thereby
building goodwill. It also helps the producers to study the market trends, fashion preferred by
buyers and style trend of people. This system offers a two way communication and the price is
regulated.

5.Direct sales force — This is a channel through which products move directly from the
manufacturer or vendor to the end user, usually by a professionally trained field sales force.