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| Producing a product or service and making it available to buyers requires building __________ not just with customers, but also with key suppliers and resellers in the company's supply chain. |
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| __________ from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service. |
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| Downstream marketing channel partners, such as __________ and __________, form a vital connection between the firm and its customers. |
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| A well-managed distribution system can make the difference between a market-share _________ and a company struggling for survival. |
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| ___________, a _______ marketplace, _________ distribution techniques, and a ___________ product have increased the importance of distribution. |
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Definition
| Competition, global, electronic, perishable |
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| ___________ has meant that many hotel companies must choose foreign partners to help them market or distribute their products. |
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| A distribution channel is a set of ___________ organizations involved in the process of making a product or service available to the consumer or business user. |
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| Distribution networks in the hospitality industry consist of contractual agreements and loosely organized ________ between independent organizations. |
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| In the hospitality and travel industries, distribution systems are used to move the _________ to the product: the hotel, restaurant, cruise ship, or airplane. |
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| Selling through wholesalers and retailers usually is much more efficient than direct ________. |
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| A distribution channel moves goods from ________ to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. |
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| ___________: Gathering and distributing marketing research and intelligence information about the marketing environment. |
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| ____________: Developing and spreading persuasive communications about an offer |
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| ___________: Agreeing on price and other terms of the offer so that ownership or possession can be transferred. |
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| Risk taking: Assuming financial risks such as the inability to sell _________ at full margin. |
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| Shifting functions to the intermediary may keep producer costs and prices low, but intermediaries must add a ________ to cover the cost of their work. To keep costs low, functions should be assigned to channel members who can perform them most efficiently. |
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| Each layer that performs some work in bringing the product and its ownership closer to the final buyer is a ________ level |
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Definition
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| From the producer's point of view, a greater number of intermediaries in the channel means less ________, more _________, and more _______. |
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Definition
| control, complexity, cost |
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| A _________ must choose the intermediaries that will make up the distribution system and the number of levels that the distribution system will have. |
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Definition
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| One way of reaching a geographically ________ marketplace is through travel agents. |
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Definition
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| Hotels seeking travel agent business must make it easy for agents to make reservations. Providing toll-free reservation _________ is essential. |
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Definition
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| Hotels must do everything possible to make a ________ impression on guests booked through travel agents to ensure future business from that agent. |
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| _________ travel agents are one of the strongest areas of the travel agency business. |
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| In developing a package, a tour wholesaler contracts with airlines and hotels for a specified number of seats and rooms, receiving a ________ discount. |
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Definition
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| The tour wholesaler has to provide a ________ for the travel agent and give consumers a package that is perceived to be a better value than what they could arrange on their own. |
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Definition
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| With the increased number of international resorts, tour wholesalers are becoming a powerful member of the __________ channel. |
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Definition
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| Tour ________ sell motor coach tours, which are attractive to a variety of markets. |
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Definition
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| Motivational houses provide __________ travel offered to employees or distributors as a reward for their efforts. |
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Definition
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| ________ reps serve the casino industry as intermediaries for premium players. Junket reps maintain lists of gamblers who like to visit certain gaming areas, such as Reno, Las Vegas, or Atlantic City, and they work with one or a few casinos rather than the entire industry. |
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Definition
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| It is often more effective for hotels to hire a hotel representative than to use their own salesperson. This is true when the market is a ________ one and when cultural differences may make it hard for an outsider to penetrate the market. |
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| ________ changes in hotel representatives are not cost efficient or cost effective |
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Definition
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| National, state, and local tourist agencies are an excellent way to get _________ to the market and gain room bookings. |
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Definition
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| State agencies _______ the state resources and attractions overseas, nationally, and in the state itself. |
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| Reservation systems provide a ________ reservation system for hotels. They usually provide the system for small chains or provide an overseas reservation service, allowing international guests to call a local number to contact the hotel. |
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Definition
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| A __________ is a group of hospitality organizations that is allied for the ________ benefit of the members. |
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Definition
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| The consortium allows a property to be independent in ownership and management while gaining the advantages of __________ marketing. |
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Definition
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| The difference between a consortium and reservation company is that the __________ provides a more comprehensive range of marketing services and its members pay for these services with initial joining fees and annual fees. |
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Definition
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| Global _______ systems (GDSs) are computerized reservation systems that serve as a product catalog for travel agents and other distributors of hospitality products. |
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Definition
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| Internet reservations account for almost ______ percent of leisure and business travel bookings. |
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Definition
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| Almost all hotel brand web sites offer a low price guarantee. This encourages guests to book _______ with the hotel company, rather than through an intermediary. |
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Definition
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| One model of distribution on the internet is called the _________ model. In this model distributors mark up discounted net-rate hotel rooms. |
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Definition
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| Priceline and Hotwire use an ________ system where the buyer cannot specify any particular hotel or airline; thus, someone with a brand preference cannot compare prices with specific hotels. |
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Definition
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| Persons who purchase from a third party on the internet pay the _______ party. |
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Definition
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| Point of sale (POS) systems are now available that allow guests to make _________ over the Internet and include when they want to pick up the order. |
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Definition
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| One of the major advantages of the Internet is it saves ______. The internet is an excellent example of how service companies can get the customer to be their employee. |
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Definition
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| Each channel member is _________ on the others, playing a role in the channel and specializing in performing one or more functions. |
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Definition
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| Although channel members depend on each other, they often act alone in their own short-run best interests. They frequently disagree on the roles each should play or who should do what for which rewards. Such disagreements over goals and roles generate channel __________. |
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Definition
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| ____________ conflict is conflict between firms at the same level of the channel. |
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Definition
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| _______ conflict, which is more common, refers to conflicts between different levels of the same channel. |
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Definition
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| Some conflict in the channel takes the form of healthy competition. Without it, the channel could become ______ and _________. |
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figure 12.3
conventional marketing channel: manufacturer -> wholesaler -> retailer -> consumer
vertical marketing system: [manufacturer -> wholesaler <- retailer] -> consumer |
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Definition
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Term
| By contrast, a vertical marketing system (VMS) consists of __________, ___________, and _________ acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they all cooperate. |
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Definition
| producers, wholesalers, retailers |
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Term
| In a corporate VMS, coordination and conflict management are attained through ________ ownership at different levels in the channel. |
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Definition
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| A contractual VMS consists of independent firms at different levels of production and distribution who join through _______ to obtain economies or sales impact. |
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Definition
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| Franchising is a method of doing business by which a franchisee is granted 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 _________, _________, and _________. |
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Definition
| trademark, name, advertising |
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| One of the reasons for the popularity of franchising is that it is the ________ way to start a new business. |
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Definition
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| One of the reasons that companies decide to franchise is that is allows for increased ________ of their products. |
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Definition
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| A variation of the traditional form of franchising is _____________. In this form of franchising, the franchisor sells the right to distribute a franchise to a third party, and this agent then sells to the franchisees. |
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Definition
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| __________, another form of contractual agreement, are developed to allow two organizations to benefit from each other's strengths. |
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Definition
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| Another channel development is __________ marketing systems (HMS), in which two or more companies at one level join to follow a new marketing opportunity. |
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Definition
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Term
| Today, with the proliferation of customer segments and channel possibilities, more companies have adopted __________ marketing distribution |
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Definition
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| To design an effective _________, the company must understand the services its customers require and then balance the needs of those customers against the feasibility and costs of meeting them. |
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Definition
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| Just as a company carefully chooses its employees, it should carefully choose channel members. These firms will represent the company and will be partially responsible for the company's __________. |
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Definition
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Term
| __________ costs are created when we discount products, only to find out that we could sell them for a higher price. |
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Definition
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| Using sales representatives offers ______ control than building your own sales force. |
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Definition
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| One of the most important aspects of distribution for hospitality organizations is ___________. |
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Definition
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