2. Distribution of goods product customer What exactly is ‘Place’ ? Accessibility of services (Grönroos) customer product therefore including availability of information ease of booking location choice physical access issues eg parking, queuing

3. Marketing Channels Sets of interdependent organisations involved in making the product available (El Ansary) Retailer Wholesaler Customer Suppliers Producer Channels convey not only products but information, orders, payments, tickets etc Each member of the channel increases the costs and so must increase the value of the end product

4. Why use intermediaries? Advantages to the Company –wider geographical coverage –local market knowledge –personal face-to-face selling –pre-booking -> pre-planning for demand –prepayment -> cashflow, interest –lower administrative costs –quick circulation of last-minute offers Does this outweigh the extra costs?

5. Why use intermediaries Advantages to the customer –local purchase, one-stop-shopping –local reputation, someone to complain to –comparison of alternatives on offer –demonstration and expert advice –up-to-date information eg late bargains Can home shopping technology offer all this?

6. Channel Leadership and Control: Who decides what is available to buy? depends on the relative bargaining power of the channel members Producer Power comes from well known brands high ad.spend competitive prices strong consumer demand

7. Trend towards Retail Power Concentration of ownership Well-known retail brands centralised buying/stocking policy selective stocking –fewer brands –own label brands Coordinated design and promotion Vertical and horizontal integration

8. Vertical Integration Same company owns more than one part of the marketing channel to ensure its supplies and outlets ( and so favours its own brands) BriitanniaAirways Thomson Holidays Lunn Poly Travel Universal Studios UPI UCI Cinemas

9. Horizontal Integration Where the same company owns different brands competing with or complementing each other to offer consumers a range of products to prevent competitors exploiting gaps

10. What have these brands in common? BeefeaterPizza HutCosta TGI Friday Brewers’ Fayre Travel Inn David Lloyd Marriott

11. Choosing the Channel Consumer decision process –where do they usually look for this product? Channel control –can I get my product on the shelves? Costs and benefits –commission v direct response advertising –wide coverage v direct communication Are small independent producers forced to use direct marketing methods?

12. Internet Channels Dis-intermediation –consumers buy direct on-line or Re-intermediation –customers buy from new on-line ‘retailers’ –Amazon, Lastminute.com, ExpediaAmazon –offering the same advantages as high-street retailers (see Slide 4)