Marketing Online Tool

The importance of the competitors

First of all, we want to mention the importance of the competition regarding to the marketing mix. We think that competition is an essential element in the efficient working of markets. In fact it brings important benefits to the consumer by:

-Enabling consumers to buy the goods and services they want at the best possible price. 

-Contributing to our national competitiveness. 

Competition policy seeks to encourage and improve the competitive process, and to ensure consumers feel the benefits of that process. These aims are achieved in practice through competition law.
For this reason, we have chosen "Fanpage Karma" as our main marketing online tool.

Fanpage Karma is an online tool for social media analytics and monitoring. It helps social media managers and agencies to engage fans better and reach a growing community in the social networks. Users can monitor an unlimited number of pages and profiles so they can check who their most active fans are, where they are coming from and which other interests they have.

As a conclusion, we could say that the real concept of this marketing tool is to provide analytics and monitoring for an unlimited number of pages and for that reason we have thought that could be very useful regarding to the distribution channels.

Types of channels - Indirects

Types of channels - Indirects

The large number of companies offering tourist services, the geographical distance between them and tourists, is the cause of the appeareance of intermediaries (indirect channels) in the tourism sector.
Intermediaries operate in outbound markets providing access to destinations and products / services locally.  But also it is frequent to have intermediaries at destination to provide local knowledge.

Indirect channels are those where there are intermediaries between suppliers and customer. 

It may include a single intermediary (short channel), two intermediaries (long channel), or more than two (very long channel). 

The image below shows some of the most common intermediaries in indirect distribution channels: 

• Tour operators /Wholesale agencies (do not sell services directly to the public). Mayoristas.

• Retail agencies (distribute and sell tourist products like packages between the final consumer). Minoristas. In Spain many agencies are a mixed (Mayoristas-minoristas).

• GDS and booking centers (contain features of both and are computerized systems)

TOUROPERATOR or WHOLESALERS

A tour operator is a person or company that offers holiday or vacation packages, primarily through reserving travel and accommodation arrangements for people.The most common example of a tour operator package would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for a price inferior to de addiction of each individual service.

Catai Tours is one of the most important touroperators in Spain.

CLASSIFICATION OF TOURISM TOUROPERATORS:

1.  According to the way of marketing their products:

a).Travel agencies that organize and sell packages through their own channels exclusively , wholesaler - retailer. Ex : El Corte Ingles Travel

b). Travel agencies that plan and sell its own sales channels such as retail agencies both , using them in cities that do not have branches .

c). Operators have only the character of wholesalers. Organize trips , but leave the final distribution to the public in the hands of retail agencies. Eg : Cathay Tours


2.  According to its geographycal scope

a).  Outbound agencies (Emisoras), operating in the country of origin of the tourists. Eg Tui, Thomas Cook.

b).Incoming agencies and DMCs (Receptoras o 'de Receptivo') are those operators that deal with travel arrangements within the country of destination in tourist areas ( Spain , Italy, Greece , etc). The services offered are related to the organization of complementary activities in destinations (excursions, talks to road transport , airport reception ... ) .


3.  Depending on the strategy they develop:

a. General agents - are the most common and linked to leisure travel and 'sun and beach' destinations.
b. Specialized Agents - specializing in market segments or types of travel. Multiple specializations are presented and , therefore , the operators in the world. The most common are specialized in:

( 1) a country or geographic area ( Cuba , Italy ... )
( 2) an age group ( young or elderly market - Imserso)
( 3) a type of vacation (weekend breaks, bank holidays...)
(4) An accommodation ( small hotels, villas, luxury hotels... )
(5) transport type ( train , coach lines, cruise lines ... )
(6 ) a specific motivation ( MICE, hiking , cruises ...), etc. .

TUI (Germany ) , Orbitz, Thomson, Thomas Cook, Condor & Neckerman , First Choice and Kuomi : Among the best known international tour operators are found tran ¬ . Nationally find Cathay Iberojet , Mundicolor , Travelplan , Soltour , El Corte Ingles, among others.



TRAVEL AGENCIES 

A travel agency is a private retailer company or public service that  provides travel and tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours.

In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialized in commercial and business travel only. There are also agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.

They are responsible for bringing the client tourism products developed by wholesale partners (who cannot sell directly to end customer).

E.g.: In the travel agency "El Corte Inglés" you can look for a Disney cruise.

Travel agencies have 3 main functions:


1.   Mediation, between suppliers and travellers. 

2 . Producer, creating holiday packages. 

3 . Information advisors / consultants, about destinations and tourist companies.


Classification of Travel agencies:

a. Wholesalers Agencies (drawn tour packages sold through retail agencies)

b. Retail partners (tourism products marketed directly to consumers)

c. Wholesale-retail (can develop the two previous activities).


Depending on the place where they sell their services:

a. Travel shops and offices, agencies in cities, in companies (in-plants), in shopping centers… Halcon viajes, Carrefour, etc...

b. Virtual agencies, Rumbo.com, Destinia, etc.

CRS (computerized reservation systems) and GDS (Global Distribution Systems)

CRS: databases of individual tourist services that are updated regularly. Travel agencies and final customers can access their information. Users can receive information, book, and change, cancel reservations. E.g.: Ruralandalus.com, Keytel, Hotusa…

GDS: system enabling online access to large databases of tourism service providers of all types like accommodation, car-rental, airlines, excursions, etc. Their use is restricted to retail agencies and companies. Though Amadeus has created its own retail agency online: amadeus.net.

Example: Amadeus, Sabre, Galileo.

METASEARCH 

There are other online brokers that work performing multiple searches on the web through different providers and comparing prices and features of the same face to the customer. Although it is a tool primarily focused search airline tickets, are now beginning to emerge metasearch hotels, are now beginning to emerge metasearch sites for hotels and other services

Example: TripAdvisor released their own metasearch hotels.

Types of channels - Directs

Types of channels - Directs

• How we saw before a channel is direct when the purchase is made directly by the customer  without intermediaries. Now we are going to see some direct channels, where the products and services are sold directly to he customer and It can be personally when the customer is presencial in the moment of the purchase or by other means like Telemarketing or Internet.

Internet

•  On internet the purchase is made through web pages of the own company, using a computers, smatrhphones, or others thecnologies.
• In the Web pages, you have information like pictures, videos and characteristics about  the products; prices, telephones, directions, a booking system, information about ways to pay... etc
• An example of purchase in internet is the web page of "Salles Hoteles".  It is a Spanish page created by the chain of hotels "Salles Hotels". You can see there offers, prices, videos, pictures,information about hotel facilities... etc  and you can realize the online reservation and the purchase from the same page.

TeleMarketing (Telephone Sales)

• Cold calling is a form of telemarketing that refers to the practise of telesales agents who make phone calls to prospective customers with whom they haven´t had previous contact.
• The possible customers don´t know that they will be receiving this call because it is nothing they have signed up for or are expecting.
• Robocalling is another form of cold calling in which telephone calls are made by automatic dialing and a pre-recorded message will be played for the answerer.

Related with the tourism we have choseen this example of an Andalusian company "Loquo".
It is not a direct channel, but It is interesting to explain an example of indirect channel and after a direct channel, because an example is the best way to see the difference.

• Loquo is an andalusian company from Málaga.This company is contracted principally by hotels that want to promote their hotel discounts, promotions or offers. The staff have to call random people and informate them of the offers, promotions, and discounts of different hotels. the conclusion is that "Loquo"  is an intermediary contrated by hotels, so the purchase is not directly.

And now we are going to see an example about direct purchase in Telemarketing, where the company is the only responsible to sell the products and services to the customers without intermediaries.

•  Marriot Vacation Club has its own telemarketing system with offices and staff  specially dedicated to contact with costumer by telephone to offer their latest promotions.

Shops and Company offices

• Shops and offices are the premises where tourist products and services are sold directly to the clients with a personal attention. The difference with the previous channels is that you are assisted directly by the staff. An example of this can be a souvenir shop or a travel agency in a high street
• We have choosen the souvenir shop "Bonanza Gift Store". It is the biggest and largest shop in the world situated in Las Vegas and there you cand fin all types of product related with tourism in Las Vegas.

Exclusive, intensive and selective distribution.

INTENSIVE DISTRIBUTION

This type of distribution is intended to reach the largest possible number of customers.

This distribution is usually used for products that are frequently used by a mass market .

• E.G

The example we have selected for this intensive distribution has been the website "LOGI TRAVEL".

This web sells all types os travel. These travels may be found in many establishments and in some travel agency.

This website is promoted just because it has many years in the market and is well known by all. At best you can find some ads on TV, but is not very usual.All its publicity is located in internet.

SELECTIVE DISTRIBUTION

This distribution has a reduced number of intermediares for geographical area. It´s in between selective and exclusive. 

• E.G.

For selective distribution we have chosen the example of "Viajes El Corte Inglés".

Viajes El Corte Inglés is an agency that sells leisure travels, which offer some guarranty of quality and security.

Viajes El Corte Inglés has a few exclusive brand stores. We only can find their products in exclusive sections inside of shopping centre El Corte Inglés. 

Viajes El Corte Inglés operates with a personality atention to the customer that supplied more sense of security to the customer.

EXCLUSIVE DISTRIBUTION

This distribution gives to a reduced number of intermediares the sales exclusivity of a product or services.

• E.G. 

For this exclusive distribution we sample the brand "FERRARI".

To obtain products of this brand is dedicated to manufacturing premium cars, we will have to be targeted to specific auto Ferrari, although few, are located in major provinces and strategic sites. Ferrari barely promoted. This brand has managed to have a reputation and has become known by word of mouth.









 The tour operator "Tour Mundial" make holiday quality products designed for all types of clients, corporate clients, institutions ...
In this case we find that one of their buyers which is "Viajes El Corte Inglés".

Definition.

Product distribution

It is one of the four elements of the marketing mix. It is defined as the combination of the activities developed by the touristic company to facilitate the access of the customer to get the information and purchase the tourist products and services.

It involves a chain of individuals and institutions like distributors, wholesalers and retailers who constitute firm’s distribution network (also called a channel of distribution). But what is exactly a channel of distribution?
Channel of distribution is the way for which the products and services come to the customers from the merchant.This way can be through direct channels when the purchase of the services and products is directly sold to the customer and indirect channels when the products and services are sold through intermediaries.

1. Outline.

DISTRIBUTION CHANNELS

-Intensive

-Selective

Types of distribution                            -Exclusive

                                                                                                ·Travel agencies

                                                                                                ·Tour Operators

                                                                 Indirect                  ·Wholesalers intermediaries 

                                                                                                ·Reservation centers

                                                                                                ·Others channels

                                                                                                     ·Bidder offices

                                                                                                     ·Telephone sales

Types of channels                                  Direct                         ·Internet/Online

                                                                                                     ·Multimedia  TV

                                                                                                     ·Vending


                                                                                                   
                                                                                                   
                                                                Other types of                 ·Franchise
                                                                Channels.                        ·Time sharing
                                                                                                          ·Franchise holder