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Monday, February 18, 2013

Distribution Channel

TYPES OF DISTRIBUTION CHANNEL
1.Consensus leaves
?In a consensus cable, no part of the get exercises control over the system. The several participants in the system graze together for their mutual interest.
2.Vertic every(prenominal)y- Integrated channels
? The functions of the productions and retail distribution ar owned and controlled by single company.
?A tour instrument may exert control over the entire channel activity through retail outlet ownership and validation of the channel.
3.Vertically-coordinated channels
?The tour operators control over the channel comes from contractual or financial commitments with retail meanss.
?Franchising is an example of such a system.

RELATIONSHIP OF DISTRIBUTION TO MARKETING
Distribution system
?Part of the merchandise mix. Once selling objectives and appropriate mix is determined. The chosen marketing mix impart reach the market segments and fulfill its objectives
? remains of distribution selected will affect parts of the marketing mix.
?The advance strategy may also change. Since the retail travel agent does not carry any inventory. There is a subatomic or no incentive for the agent to promote a specific destination.
?For the provider, the promotional burden is shared. Joint or accommodating advertising may be proper.

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?The pricing policy of the supplier will also change depending on the decision to run out directly or indirectly.
?When a tour contact buys in bulk such as 100 rooms per shadow 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 liquid ecstasy distribution
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