Matakuliah
Tahun
: V0222 - Penjualan dan Pemasaran Hotel
: 2009 - 2010
Distribution Channels
Pertemuan 9
“Adversarial power relationships
work only if you never have to see or
work with the other party again.”
-Peter Drucker-
Distribution Channels
• A distribution 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 product
Why Use Marketing Intermediaries?
• Selling through wholesalers and retailers usually is
much more efficient and cost effective than direct
sales
Distribution Channel Functions
• Information: gathering and distributing marketing research and
intelligence information about the marketing environment
• Promotion: developing and spreading persuasive
communications about an offer
• Contact: finding and communicating with prospective buyers
• Matching: shaping and fitting the offer to the buyer’s needs,
including such activities as manufacturing, grading, assembling,
and packaging
• Negotiation: agreeing on price and other terms of the offer so
that ownership or possession can be transferred
• Physical distribution: transporting and storing goods
• Financing: acquiring and using funds to cover the costs of
channel work
• Risk taking: assuming financial risks such as the inability to sell
inventory at full margin
Number of Channel Levels
• Channel level can be described as
distribution channels
• Direct marketing channel
• Retailer
• Wholesaler
Customer
Channels
Customer Marketing
Marketing Channels
Marketing
Intermediaries
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Travel Agents
Tour Wholesalers
Specialists
Hotel Reps
Concierges
• National, State,
and Local
Agencies
• Consortia and
Reservation
Systems
• Global Distribution
Systems
• Internet
Marketing Intermediaries
Travel Agents
Tour Wholesalers
Specialists:
Brokers & Junket Reps
Concierges
Hotel Representatives
Internet
Global Distribution
Systems
National, State,
and Local Tour Agencies
Consortia & Reservations
Systems
Channel Behavior
• Channel members are dependent upon one another and
must work together for the channel to operate successfully
• Members should understand and accept their roles,
coordinate their goals and activities, and cooperate to
attain overall channel goals
Channel Conflict
• Horizontal conflict is conflict between firms at the same level of
the channel
– i.e. retailer to retailer
• Vertical conflict, which is more common, refers to conflicts
between different levels of the same channel
– i.e. retailer to wholesaler
Channel Organization
• A vertical marketing system (VMS) consists of
producers, wholesalers, and retailers acting as a
unified system
• One channel member either owns the others, has
contracts with them, or wields so much power that
they all cooperate
Conventional vs. Vertical Marketing Channels
Vertical Marketing Systems
• Corporate VMS combines successive stages
of production and distribution under single
ownership
• Administered 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
obtain economies or sales impact
Franchising
• Granting the right to engage in offering,
selling, or distributing goods or services
under a marketing format which is
designed by the franchisor
• The franchisor permits the franchisee to
use its trademark, name, and
advertising
• Higher survival rates
Franchisee – Advantages
Marketing
Support
Brand Name
Contracts
Plans and
Systems
Reservation systemsCustomers
Franchisee – Disadvantages
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•
•
Value of brand name determined by franchiser
Introduction of new products determined by franchiser
Your reliability tied to the rest of the system
Disadvantages – Franchiser
•
•
•
•
Distribution system – other systems can add conflict,
Little Caesars going into K-marts cases conflict with
other Little Caesars in the area.
Consistency
Changing operation – Pizza Hut adding delivery
Advertising expenditures
A Franchise is Only as Strong as –
Brand Name
Market demand for
the product
Competitive Advantage
system
Channel Organization
• Alliances are developed to allow two
organizations to benefit from each other’s
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
Selecting Channel Members
• Customer Needs
• Attracting Channel Members
• Evaluating Major Channel Alternatives
– Economic Feasibility of the Channel Member
– Control Criteria
Business Location
1. Understand the marketing strategy and
target market of the company
2. Conduct a regional analysis, which involves
the selection of geographic market areas
3. Select an area within that region
4. Choose individual sites
Key Terms
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Administrative VMS
Agent
Alliances
Broker
Channel conflict
Channel level
Contractual VMS
Corporate VMS
•
•
•
•
•
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•
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Direct marketing channel
Franchise organization
Horizontal conflict
Horizontal marketing systems
(HMS)
Multichannel marketing
Retailer
Vertical conflict
Vertical
marketing
system
(VMS)
Wholesaler