HFT4502 Exam 3 Chapter 12 Supply Chains partners 11 23 2015 o The supply chain consists of upstream and downstream Upstream partners are firms that supply what is needed to create a product or service Downstream partners connect the firm with its customers o value delivery network where all parties partner with each other to improve the performance of the entire system Distribution Channels o set of independent organizations involved in the process of making a product or service available to the end user o distribution channels in product marketing consumer Hospitality marketing o Channel Levels Used to move tangible goods from producer to Used to move the consumer to the product A level of middleman that performs some work in bringing the product and its ownership closer to the final buyer Direct Indirect Manufacturer consumer Manufacturer intermediary consumer Manufacturer retailer consumer Manufacturer wholesaler retailer Manufacturer jobber wholesaler retailer consumer consumer Major hospitality distribution channels Direct booking GDSs OTAs Travel agents Individual declining Book packages on behalf of the end user Corporate remains strong Profit from consumers and hotel commissions Tour wholesalers Assemble travel packages usually targeting the leisure market Travel agents sell these packages Profit small margins on sold packages Specialist intermediaries Tour brokers sell motor coach tours Motivational houses provide incentive travel offers to firms who want to reward employee distributor performance Junket reps Serve casinos as intermediaries to bring in premium players Hotel Representatives Sell hotel rooms services for hotels in a given area Tourist Agencies Can be national state or local DMOs and CVBs Consortia A group of hospitality organizations allied together for marketing purposes Concierges Often overlooked but can be hugely valuable to small organizations o Channel Behavior Channel members are dependent on each other to accomplish goals The ideal Channels work together The reality Channel conflict Horizontal conflict Conflict between firms at the same level Vertical conflict Conflict between different levels of the same channel Horizontal marketing system Vertical Marketing Systems Two or more companies at one level join to follow new marketing opportunities Companies can combine their capital production capabilities or marketing resources to accomplish more than one company working alone A distribution channel structure in which producers wholesalers and retailers act as a unified system Either one channel member owns the others or has contracts with them or has so much power that they all cooperate Administered VMS coordinates successive stages of production and distribution not through common ownership or contractual ties but through the size and power of one of the parties Corporate VMS combines successive stages of production and distribution under single ownership Channel leadership is established through common ownership Contractual VMS independent firms at different levels of production and distribution join together through contracts to obtain more economies or sales impact than they could achieve alone o Franchising a channel member called a franchiser links several stages in the production distribution process o Alliances developed to allow two organizations to benefit from each other s strengths Alliances o Designed to allow two organizations to benefit from each other s strengths Noncompetitive Mutual strengths o Examples Restaurants and hotels Restaurants and gas stations Hotels and motor coaches Restaurants and motor coaches Chapter 13 The Promotion Mix o The specific mix of advertising personal selling sales promotion and public relations a company uses to pursue its advertising and marketing objectives Integrated Marketing Communications o The changing face of communication Changing consumers Changing marketing strategies Technology IMC o Characteristics of integrated marketing communications Consistency across all contact points Integration across all forms of communication Developing effective communication Identify the Target Audience i ii Determine the Communication Objectives iii Design the Message iv Select the Communication Channels v Select the Message Source vi Collect Feedback Before you craft the message Clearly identify to whom the message is targeted Targets can have many qualities Potential or current buyers Buyers or influencers Individuals or groups Where does the target stand in relation to the product And what needs to be done to get to buy Six states of buyer readiness Liking Awareness Knowledge Preference Conviction Purchase model Get attention Hold interest Characteristics of an effective message The AIDA Arouse desire Obtain action Three issues in putting a message together Message content What to say Message structure How to say it logically Message format How to say it symbolically Two types of communication channels Personal communication channels Two or more people communicate directly with each other Controlled vs uncontrolled Non personal communication channels Media that carry messages without personal contact or feedback Print broadcast display radio web atmospheres etc Message credibility depends on the sender What makes a source credible Expertise Trustworthiness Likeability Promotional Tools Promotions budget is divided among several major promotional tools This is the promotional mix Promotional tools include o Advertising o Personal selling o Sales promotion o Public relations o Direct marketing Advertising Any nonpersonal presentation of goods services paid for by an identified sponsor Benefits Drawbacks o Seems legit o Allows repetition o Builds long term image o Low cost per exposure o Impersonal o One way communication o Easily ignored o Can be very costly Objectives for advertising Persuasive Reminder Informative Four steps in selecting the appropriate media mix Deciding on Reach Frequency Choosing Among Major Media Types Selecting Specific Media Vehicles Deciding on Media Timing Vocabulary o Copy testing A process performed before or after an ad is printed or broadcast o Direct rating The advertiser exposes a consumer panel to alternative ads and asks them to rate the ads o Direct marketing Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships the use of direct mail the telephone direct response television e mail