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Channel Members
Distribution
Direct distribution:
When the producer sells goods or services directly to the
customer, with no intermediaries.
Indirect distribution:
Involving one or more intermediaries.
Channel Members
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Channel Members and Their Functions
Wholesalers
Businesses that buy large quantities of goods from
manufacturers, store the goods, and then resell them to other
businesses.
Take title to goods they buy for resale.
Rack jobbers-wholesalers who manage inventory and
merchandising for retailers by counting stock, filling it in when
needed and maintaining store displays.
Drop shippers-own the goods they sell but do not physically
handle the actual products.
Channel Members
Retailers
Sell goods to final consumer for personal use.
Non-store retailers
Agents
Intermediaries that bring buyers and sellers together.
Brokers
Negotiate a sell, paid a commission, and look for new
customers
Channels
Using telemarketing
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Distribution Channel Functions
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Distribution Channel Functions
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Distribution Channel Functions
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Distribution Intensity
Intensive Distribution
The use of all suitable outlets to sell a product
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Disadvantages – Franchiser
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Franchisee – Advantages
Marketing
Brand Name Support
Contracts
Reservation systems-
Plans and Customers
Systems
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Franchisee – Disadvantages
©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
Channel Design Decisions/Channel Selection Process