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