HM08- FINALS Flashcards
- methodology for bringing products to consumers
- “how can the products reach the end users?”
supply chain distribution
these largely depend on the financial and company goals for the business
distribution plans
- distribution plans largely depend on the financial and company goals for the business
- balances supply and demand
supply chain distribution
two options for supply chain distribution
- seel product directly to consumers- sole distributor
- third parties for distribution process
goal of supply chain distribution
- handle any type of market changes
- reduce no. of transactions to get the product from supplier to end customer
the one that sells products without directly reaching customers
distribution channels
why do channels exist?
- convenient
- availability
- accessibility
- less transaction
- win-win transaction
why can’t firms sell directly?
- to reach more customer
- other companies may want to focus on production rather than distribution (unable to produce and distribute competitively)
why are go-betweens needed?
- make the accessibility of the products easier for customers.
- easier transactions between channels
- intermediaries allow companies to promote, sell, and distribute their products directly to consumers
four (4) types of distribution channel
- website
- online travel agencies
- travel agents
- global distribution system (GDS)
ideal platform to convey brand values and deliver marketing message that appeals to target audience (has to be updated)
website
website increases what?
visibility to hotel
only distribution channel that generates direct sales without paying a commission to third party
website
most costly distribution channel
online travel agencies (OTAs)
primary benefit of online travel agencies (OTAs)?
- extra exposure
- hotels attract guests that have not found you