Distribution

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Chapter 12 Distribution

Distribution

Selling Hospitality & Tourism

Channels of Distribution

2
 Distribution

Chapter Objectives

Explain the types of selling.

List the steps of selling.
Differentiate between features and benefits.
Define channels of distribution.
Identify indirect channels of distribution.
Discuss the Internet channels of distribution.

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 Distribution

Types of Selling

Selling involves identifying the needs of customers

and being able to meet those needs through
providing products, or goods and services.

Selling is part of promotion, one of the four Ps of

the marketing mix.

Section 12.1 4
 Distribution

Types of Selling

Two types of selling are personal selling and

nonpersonal selling.

Sales promotion, publicity, and advertising are

types of nonpersonal selling.

Section 12.1 5
 Distribution
Types of Selling
Personal selling can
occur in a retail store, in
your own home, over the
telephone, or in an office.
Business-to-business
selling is another type of
selling.
Section 12.1
personal selling the
type of selling that
involves direct interaction
between sales associates
and customers
business-to-business
selling the type of selling
whereby one business
sells goods or services to
another business
6
 The Sales Process
Seven Steps of Selling
1 2 3 4 5 6 7
Perform
Determine Present the Overcome Close the
Approach suggestion Follow up
needs product objections sale
selling

Select
Answera questions
product toor fit
Motivate
StayFind
Present
in out
touch
the
ideas
what
customer
with
the
forthe
eliminate
the
Identify
need doubts
customers.
or wantabout
and
customers
additional
customer to action.
product
after
wantthe
or sales.
need.
sale.
make
a product
a recommendation.
or service.

Section 12.1 7
 Distribution

The Sales Process

When presenting the buying signals verbal

product, look for buying or nonverbal signs of a
customer’s readiness to
signals. buy

Section 12.1 8
 Distribution

The Sales Process

When performing cross-selling the

suggestion selling, you may
have opportunities for
cross-selling and selling
up.
method of selling the
customer additional
related products tied to
one name
selling up offering a
more expensive or
upgraded version of the
original recommendation

Section 12.1 9
 Distribution

Sales-and-Service Link

Service is what distinguishes hospitality and

tourism products from other products.

Selling without service is a disappointment.

Service builds customer loyalty.

Section 12.1 10
 Sales-and-Service Link

Customers Expect:
Needs to be met
Respect

Prompt and efficient service

A knowledgeable sales staff

A professional attitude from sales staff

Section 12.1 11
 Distribution
Selling Features and
Benefits
When selling, it is important
to identify an important
feature and distinguishing
benefit of a product or
service.
Section 12.1
feature a basic,
physical, or extended
attribute of a product or
purchase
benefit a feature
advantage of a product
12
 Distribution

12.1

1. What are the steps of selling?

2. How are sales and service linked?

3. What is feature-benefit selling?

Section 12.1 13
 Distribution

Channels of Distribution

After goods and services are produced or created,

they must reach the customer.

A channel of distribution is the path a product

takes from the producer.

Section 12.2 14
 Distribution
Channels of Distribution
A channel of distribution
can be a direct channel or
an indirect channel.
Section 12.2
direct channel the
path a product takes
without the help of any
intermediaries between
the producer and
consumer
indirect channel the
path a product takes
using intermediaries
between the producer
and consumer
15
 Distribution

Channels of Distribution

Travel agents serve as the most familiar indirect

channels of distribution.

Travel agents do not own or provide the goods

and services they sell.

Travel agents act as brokers between suppliers

and travelers for a fee or commission.

Section 12.2 16
 Distribution

Channels of Distribution

A consolidator and a tour consolidator an agent who

buys unsold products in bulk
operator are two other from suppliers and resells the
types of intermediaries. products at a discount to
intermediaries or to
consumers
tour operator an intermediary
who negotiates special rates
and blocks space with
transportation services, cruise
lines, and hotels, and packages
multiple components of a
vacation for resale to the public
or to another intermediary
Section 12.2 17
 Distribution

Internet Channels

The e-tail channel is fast, e-tail the sale of

economical, and offers a goods or services to the
customer by means of
channel for goods and the Internet
services that can be
accessed from anywhere in
the world.

Section 12.2 18
 Internet Channels
Four Main Categories of Internet Channels

Company Affinity
Web sites sites

Discount Portal
sites sites

Section 12.2 19
 Distribution

Internet Channels

To succeed, online travel Web sites must:

Be easy to use
Provide good service
Offer what customers want
Add value to the experience

Online travel sales grew to $28.9 billion in 2004—

and reached 29.2 million households.
Section 12.2 20
 Distribution

Key Elements of Selling

Getting products to the marketplace through

distribution channels is the first step before sales
can occur.

Selling is a process that requires a series of steps

to achieve the desired result.

Adding value to an experience and demonstrating

the benefits of the product’s features will help gain
customers for life.
Section 12.2 21
 Distribution

Tracking Travel
Purchases
Operating an e-tail business on an electronic channel—the
Web—can
In 2002, be costly, due toservice
the travel-marketing design,Tripadvisor
delivery, returns, and
found that
operating
most expenses.
online leisure travelers spend at least a month
researching and planning a trip before purchasing it.
Though Many larger dot-com companies crashed in the
1990’s,
After small stores
one month, like Harris
the number Cyclery ofisWest
of purchases Newton,
five times higher
Massachusetts, actually increase sales using a basic Web
than onToday,
site. the daya an adof
third is Harris’s
originallybicycle
clicked. Online services
business rides in on
need
thebetter
Web totracking systems to
get hard-to-find findand
parts out which customers
personal service. are
returning.
Describe an e-business’s home page to your class after
viewing one through marketingseries.glencoe.com.
For more information, go to marketingseries.glencoe.com.
Section 12.2 22
 Distribution

12.2

1. What is a channel of distribution?

2. What is the role of the intermediary?

3. What are some indirect channels of

distribution?

Section 12.2 23
 Distribution

Checking Concepts

1. Explain personal selling. 1. The

2.
3.
4. Benefits
Personal
Therekeyareto
are
selling
seven
feature
is
a type
step
providing
advantages
ofof
selling:
selling
quality
of a
2. Identify the steps of that involves
approach,
service
product. isSelling
goingdirect
selling. interaction
determine
beyond
benefits simply
means
needs,
between
sales associates
present
meeting
matching the
the
those
needs
3. Identify the key to and
product,
of
benefits
customers.
customers.
to
overcome
the
providing quality service. objections,
needs or wantscloseof
the customer.
sale, perform
4. Discuss the role of suggestion selling,
using product benefits and follow up.
in the selling process.
continued 24
 Distribution

Checking Concepts

5. Define a direct channel 7. Indirect

5. A
6. directchannels
Internet channel
channelsofof
of distribution. distribution
distribution areis
include:
the
paths
path aaproduct
company product
Web sites,
takes
affinityfrom
takes from producer
sites,a
6. Identify at least two to consumer using
indirect channels of producer
discount sites,
directly
andto
intermediaries.
a
portal
consumer In
sites. without
distribution in tourism. tourism,
the help indirect
of
channels of
intermediaries.
7. Name four types of distribution include
Internet channels of travel agents,
distribution. consolidators, and
tour operators.
continued 25
 Distribution

Checking Concepts

Critical Thinking 8. Online travel Web

sites must be easy
8. Explain the to use, provide
characteristics of good service, offer
successful online travel what the customer
services. wants, and add
value to the
experience.

26
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Distribution

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Distribution

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