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Distribution Channel Essay

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Below is an essay on "Distribution Channel" from Anti Essays, your source for research papers, essays, and term paper examples.

TYPES OF DISTRIBUTION CHANNEL
1. Consensus channels
 In a consensus channel, no part of the channel exercises control over the system. The several participants in the system work together for their mutual interest.
2. Vertically- Integrated channels
 The functions of the productions and retail distribution are owned and controlled by single company.
 A tour operator may exert control over the entire channel activity through retail outlet ownership and organization of the channel.
3. Vertically-coordinated channels
 The tour operator’s control over the channel comes from contractual or financial commitments with retail agents.
 Franchising is an example of such a system.

RELATIONSHIP OF DISTRIBUTION TO MARKETING
Distribution system
 Part of the marketing mix. Once marketing objectives and appropriate mix is determined. The chosen marketing mix will reach the market segments and fulfill its objectives
 System of distribution selected will affect parts of the marketing mix.
 The promotion strategy may also change. Since the retail travel agent does not carry any inventory. There is a little or no incentive for the agent to promote a specific destination.
 For the supplier, the promotional burden is shared. Joint or Cooperative advertising may be proper.
 The pricing policy of the supplier will also change depending on the decision to distribute directly or indirectly.
 When a tour wholesaler buys in bulk such as 100 rooms per night for three months, a lower rate room will be charged.

STRATEGIES
There are three strategies namely:
Intensive distribution
 Involves maximizing the exposure of the travel product distributing through all available intermediaries.
Exclusive Distribution
 Occurs when a supplier or wholesaler limits the channels and outlets for the products.
Selective
 A strategy which is between intensive and exclusive distribution
The Characteristics of the product can determine the appropriate distribution channel....

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Distribution Channel. Anti Essays. Retrieved June 19, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Distribution-Channel-115796.html