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1、Chapter 13Distribution Channels“Adversarial power relationships work only if you never have to see or work with the other party again.-Peter Drucker 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChapter Objectives
2、Describe the nature of distribution channels, and tell why marketing intermediaries are used Understand the different marketing intermediaries available to the hospitality industry and the benefits each of these intermediaries offersKnow how to use the Internet as a distribution channel2006 Pearson
3、Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChapter ObjectivesDiscuss channel behavior and organization, explaining corporate, contractual, and vertical marketing systems, including franchising Illustrate the channel managem
4、ent decisions of selecting, motivating, and evaluating channel members Identify factors to consider when choosing a business location 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensDistribution ChannelsA distributi
5、on channel is a 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 product2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458
6、Kotler, Bowen, and MakensWhy Use Marketing Intermediaries?Selling through wholesalers and retailers usually is much more efficient and cost effective than direct sales 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Maken
7、sDistribution Channel FunctionsInformation: gathering and distributing marketing research and intelligence information about the marketing environmentPromotion: developing and spreading persuasive communications about an offer 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th e
8、ditionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensDistribution Channel FunctionsContact: finding and communicating with prospective buyers Matching: shaping and fitting the offer to the buyers needs, including such activities as manufacturing, grading, assembling, and packaging 2006 Pearso
9、n Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensDistribution Channel FunctionsNegotiation: agreeing on price and other terms of the offer so that ownership or possession can be transferred Physical distribution: transporting a
10、nd storing goods 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensDistribution Channel FunctionsFinancing: acquiring and using funds to cover the costs of channel work Risk taking: assuming financial risks such as th
11、e inability to sell inventory at full margin 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensNumber of Channel LevelsChannel level can be described as distribution channelsDirect marketing channelRetailerWholesaler2
12、006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensCustomer Marketing ChannelsCustomer Marketing Channels2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler
13、, Bowen, and MakensMarketing IntermediariesTravel AgentsTour WholesalersSpecialistsHotel RepsConciergesNational, State, and Local AgenciesConsortia and Reservation SystemsGlobal Distribution SystemsInternet2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle Ri
14、ver, NJ 07458 Kotler, Bowen, and MakensTravel AgentsTour WholesalersConciergesSpecialists: Brokers & Junket RepsInternetHotel Representatives Consortia & Reservations SystemsGlobal Distribution SystemsNational, State, and Local Tour AgenciesMarketing Intermediaries2006 Pearson Education, Inc. Market
15、ing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChannel BehaviorChannel members are dependent upon one another and must work together for the channel to operate successfullyMembers should understand and accept their roles, coordinate their goals and
16、activities, and cooperate to attain overall channel goals 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChannel ConflictHorizontal conflict is conflict between firms at the same level of the channel i.e. retailer
17、to retailerVertical conflict, which is more common, refers to conflicts between different levels of the same channel i.e. retailer to wholesaler2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChannel OrganizationA v
18、ertical marketing system (VMS) consists of producers, wholesalers, and retailers acting as a unified systemOne channel member either owns the others, has contracts with them, or wields so much power that they all cooperate 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editi
19、onUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensConventional vs. Vertical Marketing Channels2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensVertical Marketing SystemsCorporate VMS combines successive stages
20、of production and distribution under single ownershipAdministered VMS coordinates successive stages of production and distribution through the size and power of the parties Contractual VMS consists of independent firms at different levels of production and distribution who join through contracts to
21、obtain economies or sales impact 2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensFranchisingGranting the right to engage in offering, selling, or distributing goods or services under a marketing format which is desi
22、gned by the franchisorThe franchisor permits the franchisee to use its trademark, name, and advertisingHigher survival rates2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensDisadvantages FranchiserDistribution system
23、 other systems can add conflict, Little Caesars going into K-marts cases conflict with other Little Caesars in the area.ConsistencyChanging operation Pizza Hut adding deliveryAdvertising expenditures2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ
24、 07458 Kotler, Bowen, and MakensFranchisee AdvantagesBrand NameMarketing SupportPlans and SystemsReservation systems-CustomersContracts2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensFranchisee DisadvantagesValue of
25、 brand name determined by franchiserIntroduction of new products determined by franchiserYour reliability tied to the rest of the system2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensA Franchise is Only as Strong a
26、s Brand NameCompetitive Advantage systemMarket demand forthe product2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChannel OrganizationAlliances are developed to allow two organizations to benefit from each others
27、strengths Horizontal marketing systems are two or more companies at one level that join to follow a new marketing opportunity Multichannel marketing occurs when a single firm sets up two or more marketing channels to reach one or more customer segments 2006 Pearson Education, Inc. Marketing for Hosp
28、itality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensSelecting Channel MembersCustomer Needs Attracting Channel Members Evaluating Major Channel Alternatives Economic Feasibility of the Channel Member Control Criteria 2006 Pearson Education, Inc. Marketing for Hospit
29、ality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensBusiness LocationUnderstand the marketing strategy and target market of the companyConduct a regional analysis, which involves the selection of geographic market areasSelect an area within that region Choose individual sites2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensBest PracticesExpediaOrbitzPricelineTravelocity Tri
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