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Module TPS Intermediaries

Marketing intermediaries are independent companies that facilitate the movement of goods and services from producers to consumers, particularly in the tourism industry. They perform various functions such as information gathering, promotions, and physical distribution, and include travel agents, travel operators, and online systems among others. Choosing the right intermediaries involves considering factors like reputation, efficiency, cost, and control, while access to potential customers is crucial for business success.

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2 views

Module TPS Intermediaries

Marketing intermediaries are independent companies that facilitate the movement of goods and services from producers to consumers, particularly in the tourism industry. They perform various functions such as information gathering, promotions, and physical distribution, and include travel agents, travel operators, and online systems among others. Choosing the right intermediaries involves considering factors like reputation, efficiency, cost, and control, while access to potential customers is crucial for business success.

Uploaded by

mauriz merin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TOURISM PROMOTION SERVICES 2

TOPIC: MARKETING INTERMEDIARIES

What is a Marketing Intermediary?

Marketing intermediaries, or mediators, are independent companies facilitating the movement of goods
and services from manufacturers to end-users. They use wholesalers, agents, retailers, physical
distribution companies, marketing services agencies, financial institutions, etc., to bridge the gap
between producers and consumers.

In Tourism Industry INTERMEDIARY is am middle agent that links tourism suppliers and potential
customers. They serve to facilitate the flow of the products and services to make the convenient for the
costumer to avail himself/herself of it.

FUNCTIONS OF MARKETING INTERMEDIARIES

1. INFORMATION- gathering and distributing marketing research and intelligence information


about the marketing environment.
2. PROMOTIONS- developing and spreading persuasive communications about an offer.
3. CONTACT- finding and communicating woith prospective buyers.
4. MATCHING-shaping and fitting the offer of the buyers need.
5. NEGOTIATION- agreeing on price and other terms of the offer so that ownership and possession
can be transferred.
6. PHYSICAL DISTRIBUTION- transporting and sorting of goods.
7. FINANCING- acquiring and using funds to cover for the cost of channel work.
8. RISK TAKING- assuming financial risks, such as the inability to sell inventory at full margin.

KINDS OF MARKETING INTERMEDIARIES

1. TRAVEL AGENTS
These are the most widely used marketing intermediary in the tourism industry (though the
Internet is now becoming vastly popular as well). Travel agents offer wide array of products and
services from transportations to accommodations and tour packages. Hudson(2008) claims that
travel agents are able to perform four (4) distinct functions as:
a. Distribution and sales network
b. Reservation and ticketing
c. Information and provision and travel counseling and;
d. Design of individual itineraries.

Travel agents also provide travel management services to corporate accounts they handle who
may need such services beyond the four functions mentioned above.

2. TRAVEL OPERATORS OR WHOLESALERS

These organizations that offer packaged vacation tours to general public targeting the leisure
market. The tour package includes transportation and accommodation, as well as meals, ground
transportation, entertainment, and activities. Some tourist markets find such products too stiff
and inflexible.

3. TOUR SPECIALIST
Tour specialist are organizations that focus on one or more functions of the distribution system.
Examples of such tour specialists are educational tour specialists who focus in servicing
educational field trips for schools, colleges, and universities.

4. HOTEL SALES REPRESENTATIVES


Hotel sales representatives sell hotels rooms, function rooms, and other services in a particular
market area. Hotels have found it more more efficient to hire local hotel sales representative in
profitable key cities instead of sending its hotel sales executives to do personal selling in the
area. Hotel sales representatives can carry different non-competing hotel brands
simultaeneously. They are paid a straight commission fee aside from their salary or
compensation.
5. GOVERNMENT TOURIST ASSOCAITIONS
National, regional, and local tourism agencies or officers are an excellent way to get information
to the market gain bookings. They usually market their locality to tourists and carry with them
different establishements,properties and attractions within their teritory.
6. CONSORTIA
A consortium is a group of hospitality organizations that is allied for the mutual benefit of the
members. Its allows a property to be independent in ownership and management while gaining
advantages of group marketing.
7. CONCIERGES
The hotel front office usually the most frequently asked hotel employees about the nearest
restaurant, shopping mall, or attraction nearby. AS such, the concierge, bell staff, and front desk
clerks should be equipped with good recommendations and information about the tourist
services.
8. INTERNET-BASED SYTEMS
Online travel agencies, group buying sites, and company websites are online platforms that
companies can easily use to make their product and services available to potential costumers.
Hotels list themselves in Expedia & Agoda. Resorts, tour packages, and restaurants are listed in
Deal Grocer or MetroDeal. Zomato.com and TripAdvisor which are popular websites listing
hotels, restaurants and resorts.

9. ALLIANCES
Strategic alliance is another form of marketing intermediary. When a hotel, restaurant, or a
resort partners with a telephone company, credit card company, or other relevant companies
share costumers and aim objectives that will benefit both companies A certain credit card
company for instance partners a five star hotel wherein they offer a 50% discount room
reservation using the credit card.

FACTORS TO CONSIDER IN CHOOSING MARKETING INTERMEDIARIES


In choosing intermediaries, tourism suppliers must consider the following factors.
1. REPUTATION- a major consideration in choosing a distribution channel is the reputation of
the organization. The company should have a good reputation one that has trustworthy,
dependable, and professionally-managed.
2. EFFICEIENCY- A distribution channel should offer fast, reliable and excellent service.
3. COST- Economic feasibility of the distribution channel should also be considered so that the
value they add to the company compensates for the cost of paying for them.
4. CONTROL- Tourism supplier should be able to exercise a certain degree

IMPORTANCE OF ACCESS

Access is a key ingredient to the success of any business. Products and services have to be
accessible to its potential costumers. Strategic location of the business depends on where one’s
costumers are. Are potential customers near where you plan to establish your business? Should
you set-up online purchases because your customers are always online?

Some factors to consider in choosing a location include:


• Accessibility- souvenir shops should be near tourist attractions. Restaurants
should be near at tourist accommodations and transportation hubs such as
airport, seaports and bus terminals.
• Type of Market- Choice of location should also consider the psychographic and
demographic characteristics of the market within the area and its growth
potential.
• Availability of Competitors- competition is nor bad necessarily bad. If
competing establishments are already present in the identified location, it only
means that there are alreadya , market in specific area.
• Compatibility with the Business- the character of the location should be
compatible with the type of business to be set up. A wellness resort in the
middle of an enterntainment city with amusement parks and concert venues is
out of place.

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