Activity 5.docx - Exercise 4 Distribution Channels in the...

Exercise 4 Distribution Channels in the hospitality and tourism industry
Identify all distribution channels involved in the process of making a product or
service available to the guests in the hospitality and tourism industry. Include a brief
description on how these channels function. Cite your references

Transactional Function,
first Financing ; Intermediaries usually make
advance payments for goods and services, thereby, providing necessary
working capital to the manufacturers for their day-to-day operations. Second
Assists in Merchandising ; Through merchandising, they help reinforce the
awareness about the product among customers. While visiting a retail shop,
customer’s attention can be allured by an attractive display of the
product/brand increasing his awareness and interest. Third Provides Market
Intelligence ; Market intelligence and feedback to the principal are rendered
by channels. In the nature of things, channels are in a good position to
perform this task, since they are in constant and direct contact with the
customers. They feel the pulse of the market all the time. Fourth
Assortment of Products; It leads to the customer convenience as channels
of distribution help the consumers to buy goods in convenient unit lots, packs
and assorted varieties of the products. In order to use the economics of scale
and to minimize the overall production cost, goods and services are produced
in bulk. Fifth Price Stability; A middleman also works to maintain price
stability in the market. Many a time the middlemen absorb an increase in the
price of the products and continue to charge the customer the same old
price. Sixth Promotion ; perform promotional activities like advertising,
personal selling and sales promotion etc., so as to be useful to the producer
in achieving greater market share in sales and market coverage of the
products. Seventh Provides Salesmanship ; they help in introducing and
establishing new products in the market. Under some cases, buyers go by the
recommendations of the dealers. The dealers establish the products in the
market through their persuasive selling and person-to-person communication.
They also provide pre-sale and after-sale service to the buyers. Eight Title ;