8 distribution-channel
- 1. 1| Course Learning Guide in THC 8- Tourism and Hospitality Marketing Prepared by: Gina Q. Baylon THC 8- TOURISM AND HOSPITALITY MARKETING TOPIC 8: Distribution Channel Time Frame: 3 hrs I. Learning Outcomes Dear student, at the end of the chapter, you will be able to: Explain the concept of distribution channels, purposes, the independent organizations in distributing products and services, the general steps of choosing the business location, franchising, strategic alliance and delivery system used by the fast-food chain companies Apply the best distribution strategy suited for each tourism and hospitality product and service II. Learning Materials Smartphone, and internet References Badilla, Maricel G. (2015).Tourism Marketing. Rex Bookstore tt ps://www.youtube.com/watch?v=Cl4GhjSALsI III. Learning Activities Distribution Systems -is the “place” aspect of the company’s marketing mix. -it provides an adequate framework for making company’s products or services available to the consumer. (Hudson) -it is a set of different organizations, independent or not, that are involved in the process of making products and services available for use or consumption (Shoemaker et al. 2007) -are often used to move the customer to the product. Distribution Channels -are set of independent organizations involved in the process of making a product or service available to the consumer or business user (Hudson 2008). -move goods from producers to consumers or move consumers to where the tourism products and services are. -it overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. Factors that increased it importance 1. Competition 2. Globalization 3. Electronic distribution techniques 4. Perishability of the product Distribution Channel -is a delivery arrangement used by a supplier, carrier, or destination marketing organization. Direct distribution channels are those the company uses on its own without the assistance of independent intermediaries. An indirect distribution channels uses the assistance of independent intermediaries to distribute its products. Disclose functions of distribution channels (Hudson and Kotler) 1. Information 2. Promotions 3. Contact 4. Matching 5. Negotiation 6. Physical distribution 7. Financing Iloilo City Community College Bachelor of Science Tourism Management Course Learning Guide
- 2. 2| Course Learning Guide on THC 8- Tourism and Hospitality Marketing Prepared by: Gina Q. Baylon 8. Risk-taking The Role of the Internet -highly effective tool for hospitality and travel companies. Advantages of using online platform for distributing travel product and services. 1. Reservations, purchases and payments can be made on line. 2. Companies are not subject to office hours; can be accessed 24/7. 3. It is able to access a wider market who are money rich but time poor. 4. It is able to cut the queuing process or waiting time. 5. It saves on labor costs. 6. Product comparisons and evaluation of alternative can be facilitated using the internet. Marketing intermediaries -are types of indirect distribution channels which are independent organizations that help distribute products and services. 1. Travel agents –most widely used in marketing intermediary in the tourism industry. It offers a wide array of products and services from transportation to accommodation and tour packages. 2. Tour operators/wholesalers- offer packaged vacation tour to the general public targeting the leisure market. 3. Travel specialist - organizations that focus on one or more functions of the distribution system. 4. Hotel sales representatives- sell hotel rooms, function rooms, and other services in a particular market area. 5. Government Tourist Associations- national, regional, and local tourism agencies or offices are an excellent way to bring information to the market and gain bookings. 6. Consortia – is a group of hospitality organizations that is allied for mutual benefit of the members 7. Reservations systems - are entities that provide a central reservation system for hotels. 8. Global Distribution Systems (GDS) –are computerized reservation systems that serve as product catalog for travel agents and other distributors. 9. Concierges- the hotel front office staff are usually the most frequently asked hotel employees about the nearest restaurants, shopping malls or attractions . Channel conflict Horizontal conflict arises within the same level of distribution channel while vertical conflict ensues between members at different levels of the same distribution channel. Selecting Channel members 1. Knowing the needs of your customers. 2. Attracting channel members 3. Studying economic feasibility 4. Maintaining control Business Location and its importance -one of the most important aspect of distribution. Steps in choosing a location: 1. Understand the marketing strategy and target market of the company. 2. Analyze the regional and select geographic market areas. 3. Select an area within the chosen geographic region. 4. Choose an individual site that is compatible with the business. Franchising -is a method of doing the business by which a franchisee is granted the right to engage in offering, selling or distributing goods or services under a marketing format which is designed by franchisor. (Kotler) -franchise agreement in an authorization granted to some to sell or distribute a company’s goods and services in a certain area , or a business established or operated under such authorization (Hudson). Franchising -a franchisee is an organization or person that purchases the brand name to distribute a product or service. -a franchisor is the parent company of the franchising distribution network.
- 3. 3| Course Learning Guide on THC 8- Tourism and Hospitality Marketing Prepared by: Gina Q. Baylon
- 4. 4| Course Learning Guide on THC 8- Tourism and Hospitality Marketing Prepared by: Gina Q. Baylon Strategic alliances -an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. -is less involved and less permanent than a joint venture.
- 5. 5| Course Learning Guide on THC 8- Tourism and Hospitality Marketing Prepared by: Gina Q. Baylon -each company maintains its autonomy while gaining a new opportunity. -could help the company to develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities. Delivery systems -is an easy way for consumers to have products or services conveniently brought to where they are. Participation Activity: How do you think will technology change distribution channels in the hospitality and travel industries over the next five years? IV. Evaluation. Answers should be in handwritten. Write your name, course and section, topic number and task number. Task 1: Essay (10 points) If you are to put restaurant, would you go for a franchise or put up your own brand? Why? Criteria: Content- 5 Punctuality - 5 Task 2: Concept Application (10 points) Discuss the distribution channel and/or marketing intermediary that is suitable in the distribution of the hotel rooms. Criteria: Content- 5 Punctuality - 5