International Marketing Channels – Spring 2017
|1||Wednesday 1/2||Introduction to the course||SRO||U177|
|2||Monday 6/2||Structure and design of MC & gap analysis||SRO||U177|
|3||Wednesday 8/2||Segmentation and service outputs||SRO||U177|
|4||Monday 13/2||Channel flow and efficiency analysis||SRO||U177|
|5||Wednesday 15/2||Channel Institutions||SRO||U177|
|6||Monday 20/2||CASE 1 – Bestnet||SRO||U177|
|7||Wednesday 22/2||Legal constraints||SRO||U177|
|8||Monday 27/2||Logistics and SCM||SRO||U177|
|9||Wednesday1/3||CASE 2 – Private Banking||SRO||U177|
|10||Monday 6/3||Channel power||SRO||U177|
|11||Monday 13/3||Managing conflict||SRO||U177|
|12||Wednesday 15/3||Alliances and hierarchies||SRO||U177|
|13||Monday 20/3||Decision-making process for foreign market entry||JUN||U177|
|14||Wednesday 22/3||Setting up direct presence in a new foreign market||JUN||U177|
|15||Monday 27/3||Setting up retail network in a new foreign market||JUN||U177|
|16||Wednesday 29/3||Servicing market via distributor model||JUN||U177|
|17||Monday 3/4||E-business and marketing channels||SRO||U177|
|18||Wednesday 5/4||Managing and motivating channel partners||SRO||U177|
|19||Monday 10/4||CASE 3 – Daloon||SRO||U177|
|20||Wednesday 19/4||Marketing channels – an international perspective||SRO||U177|
|21||Monday 24/4||Past exam||SRO||U177|
|22||Wednesday 26/4||Wrap up of the course, questions, etc.||SRO||U177|
|TBA||Term paper theme released 12 noon|
|TBA||Term paper deadline – deadline at 12 noon|
|TBA||Re-exam paper released 12 noon|
|TBA||Re-exam paper hand-in deadline 12 noon|
Marketing Channel Strategy. Palmatier, Stern, & El-Ansary. 8th Edition. Routledge.
Lecture 2. Structure and design of MC & gap analysis
Ch.1 & 5 of course book: Payne, A. & Frow, P. (2004) “The role of multichannel integration in customer relationship management”. Industrial Marketing Management, 33(6), 527-538.
Ostrom, E. (2000). “Collective action and the evolution of social norms”. Journal of Economic Perspectives 14, 137-158.
Lecture 3. Segmentation/ Service outputs
Ch.2: Mehta, R., Dubinsky, AJ. & Anderson, RE. (2002) “Marketing channel management and the sales manager”. Industrial Marketing Management, 31(5), 429-439.
Lecture 4. Channel flow and efficiency analysis
Ch.3: Lee, HL., Padmanabhan V., & Whang, S. (1997) “The bullwhip effect in supply chains” Sloan Management Review, 38(3), 93-102.
Lecture 5. Channel Institutions (Retailing, wholesaling and franchising)
Ch.6-8: Fladmoe-Lindquist, K. & Jacque, L.L. (1995). “Control Modes in International Service Operations: The Propensity to Franchise”. Management Science 41, 1238-1249.
Lecture 7. Legal constraints
Ch.13: Dutta, S., Heide, J.B. and M. Bergen. (1999). “Vertical Territorial Restrictions and Public Policy: Theories and Industry Evidence”. Journal of Marketing, 63(4), 121-134.
Lecture 8. Logistics and SCM
Ch.14: Alvardo, UY. & Kotzab, H. (2001) “Supply Chain Management: The Integration of Logistics in Marketing”. Industrial Marketing Management, 30(2), 183-198.
Lecture 10. Channel power
Ch. 10: Bergen, M., Dutta, S. & Walker, O.C. (1992). “Agency Relationships in Marketing: A Review of the Implications and Applications of Agency and Related Theories”. Journal of Marketing 56(3), 1-24.
Lecture 11. Managing conflict
Ch.11: Mohr, J. and Spekman, R. (1994). “Characteristics of Partnership Success: Partnership Attributes, Communication Behavior, and Conflict Resolution Techniques”. Strategic Management Journal, 15(2), 135-152.
Lecture 12. Alliances and hierarchies
Ch. 4 & 12: Ramaseshan, B. & Patton, M.A. (1994). “Factors Influencing International Channel Choice of Small Business Exporters”. International Marketing Review 11(4), 19-34.
Lecture 13. Decision-making process for foreign market entry
Ganotakis, P. & Love, J.H. (2012). “Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team”. Journal of International Business Studies, 43(8), 693-718.
Lecture 14. Setting up direct presence in a new foreign market
Chiao, Y-C, Lo, F-Y, & Yu, C-M. (2010). “Choosing between wholly-owned subsidiaries and joint ventures of MNCs from an emerging market”. International Marketing Review, 27(3), 338-365.
Lecture 15. Setting up retail network in a new foreign market
Coe, N.M. & Hess, M. (2005). “The internationalization of retailing: implications for supply network restructuring in East Asia and Eastern Europe”. Journal of Economic Geography, 5(4), 449-473.
Lecture 16. Servicing market via distributor model
Dacin, M.T., Hitt, M.A. & Levitas, E. (1997). “Selecting partners for successful international alliances: Examination of U.S. & Korean firms”. Journal of World Business, 32(1), 3-16.
Lecture 17. E-business and marketing channels
Webb, KL. (2002) “Managing channels of distribution in the age of electronic commerce”. Industrial Marketing Management, 31(2), 95-102.
Lecture 18. Managing and motivating channel partners
Mehta, R., Dubinsky, A.J. & Anderson, R.E. (2003). “Leadership style, motivation, and performance in international marketing channels”. European Journal of Marketing 37, 50-85.
Rosenbaum, S.M., Billinger, S., Stieglitz, N., Djumanov, A., Atykhanov, Y. (2012). ”Market economies and pro-social behavior: Experimental evidence from Central Asia”. Journal of Socio-41, 64-71.
Lecture 20. Marketing channels – an international perspective
Kim, K. & Oh, C. (2002). “On distributor commitment in marketing channels for industrial products: Contrast between the United States and Japan”. Journal of International Marketing 10, 72-97.
1. Background of the study
Over several years, marketing technologies as well as solutions have proliferated in international business. There are various tools and services of an organization can leverage for finding out the targeted and involved consumers. As several enterprises and professionals face difficulty in perpetually changing industry, high performers need to make a sense of urgency related to digital transformation (Law et al. 2015). Emerging technology has an impact on retailing and the process of retail store formats that can change in future and make integration of several digital technologies.
However, a report stated that in small marketing business; approximately 46% of marketers are not sure regarding their effectiveness of marketing efforts. Distribution or marketing channels are considered as the most differentiated aspects in the international marketing. Bowie, Paraskevas and Mariussen (2014) stated that the decisions of marketing channels involves in the supply chain strategy at channel management and the level of operation. In addition, distribution through marketing channel is considered as a critical part of the usage of the worldwide promoting program.
Pappas (2015) asserted that the hospitality industry needs to be widely defined to include a broad spectrum of hotel developments. However, there is no longer several travel vendors separated (Ozturk et al. 2016). For instances, the hotel organizations, transportations, travel agents and tour operators, as well as caterers, are included in this. Thus, instead of having moved towards the growth of the vertical system of marketing in which hotel, it is required to work within the same corporate system. The hotel industry is relating to those makes a larger framework of the travel industry. In this aspect, it is important to analyze the role of emerging technologies in marketing channel of the hospitality industry.
Retailers are driven to involve with different types of customers for having technological developments and creating distinctive experiences in course of involvement, if a physical store, ecommerce or a smart phone among the other ways. However, pervasive advancement is envisioned associated with in-depth comprehension of individual consumers and according to demands for products or services. In this perspective, ability of retailer needs to be responsive to the requirements of consumer. It has been focused that traditional retailer stores need to include drive thorough pick up locations, showroom of products and immersive experimental centers.
1.2 Research Aims and Objectives
1.2.1 Aims of the study
The research has aimed to find out the issues and challenges faced while adopting emerging technology in marketing channels. In addition, the research analyzes the role of emerging technologies in the international marketing channel. Moreover, the aims of the research are analyzing satisfaction in the marketing channels as well as critically scrutinize the role of trust and dependence in international marketing channels. In addition, the challenges faced and the process of enhancing the outcome in international marketing channels is discussed in the research.
This research tends to this objective by exploring the degree to which certain market and exporter attributes influence the improvement of relationship quality (Perez and Cambra-Fierro 2015). It is important to consider that innovation have shaped experience in marketing over the years. Widespread implementation of electronic cash register and barcode scan took place in international marketing channel. Contemporary technologies like digital signage and mobile personalization through advanced data analytics have been changing retail at present days.
1.2.2 Objectives of the study
According to Cantallops and Salvi (2014), research objectives are trailed by a progression of articulations depicting exploring destinations of the project. The research objectives can be explained as followed.
The research objectives would be helpful in order to explain the self-reported physical as well as mental health and disability level along with the social support of the persons for the research (He et al. 2013). On the other hand, intermediaries in the marketing channel provide contacts, experience, specialization as well as the scale of operation in the business (Neuhofer et al. 2014). Marketing channels are considered as important as they are making products as well as services that are available to the ultimate users.
In addition, it is important to analyze the exchange procedure through minimizing the number of marketplace contacts essential for making the sale. Bilgihan and Bulimic (2015) commented that the members of the channel have the tendency to standardize the terms of payments and delivery. It can operate between producers and customers (Hoppner and Griffith 2015). Thus, it is important to consider the products as well as retailers.
On the other hand, it is important to use intermediaries that utilize intermediaries and results efficient, less time-consuming as well as less expensive. Movement of the products is one channel for reaching a target market of the organization. It is utilized in order to maximize coverage of the organization in the marketplace and increasing the cost-effectiveness of marketing effort of the enterprise. It is also significant to analyze the role of reverse channels. The channels are designed in order to return products to the producers (Cabiddu et al. 2013). Selection of marketing channel involves several factors affecting the selection of the channel of marketing. In addition, market factors, product factors, competitive factors and organizational factors need to be considered in the marketing channel. Thus, analyzing this aspect would be helpful to understand the factors important for effective marketing channels in international business.
On the other hand, it is important to analyze intensive distribution, selective distribution and exclusive distribution that would be useful to properly comprehend the intensity of distribution in marketing channel (Li et al. 2015). Intermediary need to provide better service at lower costs compared to manufactures or the retailers. Reverse channels are usually designed in order to return products to producers. Increasing significance of rising prices for raw materials and increasing availability of the recycling facilities are required to analyze in this aspect. Moreover, the factors related to market, products, organization and competitive factors are needed analysis for investigation of satisfaction as well as commitment in the marketing channels.
In order to understand relationship and commitment in the marketing channels, it is important to understand the conflict between marketing channels. Marketers have relationships with intermediaries in the channel of distribution. Channel manager has an important role dominating as well as to be a controlling member of marketing channel (Neuhofer et al. 2015). On the other hand, channel conflict is divided into two aspects such as horizontal conflict and vertical conflict. The horizontal markets make disagreements among the members of the channel at distinctive levels of the channel. Channel cooperation can be achieved when all members of channel see as equal elements.
1.3 Problem Statement
In the hotel and tourism industry, the internet is evolving the way through which the customary components of advertising techniques are deliberately decided and operationally presented. The 4Ps (product, price, promotion, and place) established components of the marketing mix are being changed in accordance with the highlights of the internet, as the most critical communication system of current times. In this regard, the best change is occurred in the circulation and advancement of tourism products as well as services. Gulbahar and Yildirim (2015) stated that the present hyper-intelligent travel buyers get to displaying messages over an assortment of channels. It is presently encountering a dynamic union of new and conventional advanced configurations, of both intelligent and disconnected advertising channels (Bilgihan et al. 2016). Utilizing internet channels, hotels can offer their items straightforwardly to their clients or through mediators.
The part and objective of middle people are to co-work with the tourism provider to offer the item or benefit and grow a piece of the overall industry for the two gatherings. The primary focuses are depending on anyone else coordinate deals the hotels would be constraining their marketing introduction, however, would yield more because of fewer commissions paid (Huang et al. 2016). Therefore, in order to streamline brand and item introduction and increasing main concern profits are included in the process. A conveyance channel is a mix of the delegate. Every conveyance channel works parallel to and in competitiveness with different channels (Bilgihan et al. 2016). A hotel typically utilizes numerous advertising channels, for example, travel organizations, online travel benefit organizations, proficient gathering coordinator channel and additionally its own business constraint, in gathering and reservations call focuses.
These different channels give the ideal presentation to ensure that inhabitance is high. However, once in a while conflict can emerge between appropriation channels of hotels. Channel conflict occurs when there is another type of conveyance channel is seen by the current channels to be pursuing similar clients with a similar brand (Leung et al. 2015). These channels go regarding additional promoting options for the hotels. Ukpabi and Karjaluoto (2017) mentioned that it is important for the organizations having long-haul enthusiasm for a global presence. It is convenient to send own business powers to remote markets. This causes them in expanding their deal volume through conferred advertise improvement exercises, better control, and inspiration of outside middle people being utilized and making ready for smoother progress to coordinate dispersion and marketing.
Zeng and Gerritsen (2014) commented that the enthusiasm of experts and scholastics in channel relationship management has moved from corporate direct structures and connections in traditional channels. Those are represented by utilization of energy to connections between free firms including authoritative and regularizing control components (Greenland et al. 2016). Thus, it is important to identify the variables prompting this difference in intrigue. Additionally, it is required to propose a plan for characterizing channel relationship inquire about in view of control systems and recommend zones for future research that including the utilization of authoritative and regularizing control instruments in traditional channel relationships.
Essential consideration has been put on technological issues, especially those identifying with information and communication technology (ICT) (Okazaki et al. 2015). There are any commitments that have concentrated on the entire channel. These have featured the single particular perspectives, for example, the impacts of development on the relationship flow between channel individuals and the impact of the institutional, monetary, social and social setting on development in universal channels.
1.4 Research Questions
The research questions can be explained as followed.
1.5 Rationale of the study
According to Kim and Law (2015), a distribution network in the hospitality industry comprises of contractual agreements and inexactly sorted out unions between autonomous enterprises. In travel industry, distribution systems are utilized to move the client to the item: the hotel, airplanes, and restaurants. Most of the reservations are reserved for the hotel specifically. This incorporates rooms booked by the business office, those taken at the front work area and telephone calls specifically to the hotel. This is taken after by brand.com which is reservations booked through the brand’s site, e.g. Hilton.com, Marriott.com and so on. Different sources are voice calls to a focal reservation office (CRO), GDS and online travel operators (OTAs).
In any case, the essential standards of hotel conveyance have not changed that much (Moreno-Munoz et al. 2016). Hoteliers need to concentrate on dispersion channels that finish the litmus test; as it were, those that are financially smart, produce the most appointments, ensure rate equality and value respectability and come to the focused on client sections. Thus, it becomes important to consider the role of emerging technologies in the marketing channel of the hospitality industry.
However, not all appointments are made equivalent and hoteliers, for the most part, it is required consider that any reserving by means of a more marked down channel (for example, streak deal destinations like Groupon, LivingLocal.com, and SniqueAway.com) is one less reserving for a similar hotel by means of the hotelsite, call focus, GDS or OTA in a specific order. The fundamental concentration and need for any hotelier ought to be in order to offer as much stock by means of the most cost-effective conveyance channels that can conceivably create the most appointments while saving rate equality and value disintegration (Hua et al. 2015). Hence, it is required to analyze the role of emerging technologies in the marketing channel of the hospitality industry.
1.6 Research Hypothesis
It is vital to take note of that regardless of the possibility that research hypothesis is upheld by the statistical investigation, it doesn’t really affirm that the independent variable. The distinctions saw in the needy variable. Building up causation requires thorough research plans, (for example, experimental designs) and more than one investigation (Ozturk et al. 2016). A few types of research display speculations rather than inquire about goals, while others exhibit a mix of research objectives as well as theories. In the present research, research hypothesis can be explained as followed.
H0: Emerging technologies have impact on marketing channel of hospitality industry
H1: Emerging technologies have not any impact on the marketing channel of hospitality industry
1.7 Structure of the study
The paper consists of five chapters such as introduction, literature review, methodology, finding and analysis as well as conclusion and recommendation. The introductory chapter introduces the concept of the topic. In addition, research objectives, research questions, and hypothesis are set along with research rationale that would be helpful to pursue the research in a proper way. On the other hand, literature review chapter includes reviewing literature from several books, journals, articles, and websites. Selection of appropriate methodological tools will be achieved in the third chapter of the research. The fourth chapter consists of findings and analysis of data from primary sources. The last chapter ends with summarizing of findings and recommendations.
Chapter 2: Literature review
Technology in marketing channels is a topic that has been dealt with in reference to particular areas of advancement or to single classifications of subjects inside channels. Fewer investigations have been directed to a point of view alluding to the channel as an entirety. Major commitments have concentrated on advancement in retailing as the innovation of products for circulation organizations, or as development in the inventory network. In this chapter, literature review from different secondary sources is described.
2.2 Concept of marketing channel
A marketing channel is considered as general population, associations and exercises important to exchange the responsibility for from the purpose of generation to the point of utilization (Atadil et al. 2017). It is the way of items and services get to the end-client, the shopper and are otherwise called a circulation channel. A marketing channel is a helpful t for administration and is important to making a compelling as well as an arranged advertising technique.
Shaltoni (2017) stated that another type of the marketing channel is the dual distribution channel. This channel is a less customary frame that enables the maker or distributor to achieve the end-client by utilizing more than one dispersion channel. The maker can at the same time achieve the customer through an immediate market, for example, a site that will achieve the purchaser through another channel. A case of this sort of channel would be diversifying.
Roles of marketing channel in the marketing strategies can be listed as followed.
There are several types of marketing channels that can be described as followed.
Manufacturer develops the products and sells them to the buyer specifically with no middle person, for example, a distributor, operator or retailer. Products originate from the manufacturer to the client without an intermediary (Bilgihan et al. 2015). For instance, a rancher may offer some deliver straightforwardly to clients. For instance, a bread shop may offer cakes and pies straightforwardly to clients.
Manufacturer to Retailer to Consumer
Purchases are made by the retailer from the manufacturer and after that, the retailer pitches the stock to the purchaser. This channel is utilized by makers that represent considerable authority in delivering marketing products (Cobanoglu et al. 2015). For instance, garments, shoes, furniture and fine china. This stock may not be required quickly and the customer may take as much time as necessary and attempt on the things previously settling on a purchasing choice. Makers that spend significant time in creating marketing products incline toward this technique for dissemination.
Manufacturer to Wholesaler to Customer
Dadwaland Hassan (2015) stated that customers can purchase straightforwardly from the distributor. The distributor separates mass bundles for resale to the shopper. The distributer lessens a portion of the cost to the purchaser, for example, benefit-cost or deals constrain cost, which influences the buy to cost less expensive for the shopper. For instance, marketing at a portion of the distribution center clubs, the client may need to purchase an enrollment keeping in mind the end goal to purchase specifically from the distributor.
Manufacturer to Agent to Wholesaler Retailer to Customer
The distribution includes more than one delegate includes a researcher brought in to be the broker and help with the offer of the products. An agent gets a commission from the maker. Operators are helpful when products need to move rapidly into the market not long after the request is put (Agag and El-Masry 2016). It is tedious for the fishery to contact numerous wholesalers everywhere throughout the nation so he contacts a researcher. The operator conveys the fish to the wholesalers. The wholesalers pitch to retailers and after that retailers pitch to customers.
Channel Management in the hotel business is the arranging of room accessibility as well as room rates. In order to maintain a strategic distance from over appointments, the stock of a hotel should be consistently refreshed over the majority of the conveyance channels they may utilize including direct online appointments, travel wholesalers, and OTAs to give some examples. Physically dealing with various booking channels can be an all-day work. Hotels can computerize the larger part of this sort of information passage and concentrate on pleasing their visitors with an extraordinary travel involvement.
The Channel Manager from SiteMinder improves stock administration crosswise overbooking channels by:
Thus, getting a customized demo of the innovation that gets your rooms booked, refresh your stock and gives you back an opportunity to take care of your visitors.
2.3 Importance of technology in marketing channel
Marketing channel is generally seen as a vertically integrated and uni-linear structure that links retailers with specific manufacturer with the series of intermediary wholesalers (Agag and El-Masry 2016). It is no longer considered as proper conceptualization in order to make structure of the distribution channels in the system of retailing of advanced countries where power relations between members of channel with the help of vertical integration. On the other hand, the opportunity of activities specifically at the expense of wholesaler intermediaries is included in this.
On the other hand, marketing channels are defined as vertical marketing systems in specific case the leaders coordinated to each other occur. A VMS is generally coordinated channel of distribution where independent members can work together in order to achieve greater efficiency as well as economies of scale. It is also known as coordinated distribution that eliminates conflict in channel arising from the objectives. However, one of the key challenges of the initiative will make balance for strategic planning with timely action. Moreover, sales as well as marketing leaders will be differentiated from follows through effectiveness in order to set and follow through appropriate business priorities. Leaders would move getting benefits of the scopes like internet trading communities as well as distribution through affiliating partnerships. Dynamic challenging and information-intensive environment process most of the executives through learning and staying at the top of current business as well as customer centered trends compared to full-time job (Agag and El-Masry 2017). In this aspect, leaders required a method for defining as well as prioritizing myriad challenges. Collaborative customer relationship management is one of the areas where organizations can assemble as well as integrate relation management with customer systems. It would be helpful to improve collaboration between customers and develop customer loyalty.
2.4 PEST analysis
Political: Ahmad (2015) stated that government strategies can dramatically affect the internet and its potential improvement, by presenting new policies and limitations. Validity and accountability of the data should be secured and level with access for littler and bigger accomplices ought to be produced.
Tourism enterprises implementing IT and internet for getting competitive advantage, which can likewise confront legal issues because of possible violation of anti-trust laws and violation of privacy. In addition, policies as well as procedures ought to be made to advance the comprehension of potential legal risks (Arcade et al. 2015). This understanding will urge associations to acquire assistance from legal experts to design controls to stifle such risks.
Other political changes, for example expanding joblessness, competition laws and planning policies would just affect tourism and cordiality associations However,that they are utilizing innovative advances and internet appropriation channels.
Economic: The internet isn’t extremely sensitive to the economic cycles. In any case, it is viewed as that the tourism or hotel deals from the Internet will be highly influenced by monetary changes in those nations, from which the clients are reserving or saving the item (Ashari et al. 2014). These incorporate changes in financial development, loan costs, expansion or money vacillations that can dispose of tourism association’s cost preference and can have an unfriendly effect on the edges.
Social: Demographic changes and changes in clients’ attitudes towards new innovation and Internet, specifically, will directly affect Internet and tourism and cordiality enterprises deferentially. Clients at present days are winding up more talented and progressed in the utilization of innovation (Assimakopoulos et al. 2015). The social framework measurement must incorporate the bigger social and political procedures through which the interests of the diverse social gatherings cooperate with each other and with the innovation.
Technological: The modernized systems and electronic circulation frameworks created in the 1970s prompted sensational basic changes inside the tourism and cordiality industry. A CRS is basically a database that empowers a tourism association to deal with its stock and enhance availability to data inside and between its accomplices. Carriers spearheaded the CRS technology in the 1980s, by extending topographical scope and coordinating on a level plane and vertically to grasp the whole scope of mediators and principals. Singular item providers ended up plainly mindful that frameworks coordination, and the resulting formation of a “shop window” that enabled items to be shown and obtained anyplace on the planet, would be a pivotal deciding element in the aggressiveness and gainfulness of operations (Atadil et al. 2017). Accordingly, the immense, new widely inclusive GDSs developed from their unique advancement as carrier CRSs. GDSs are one of the real drivers of data advances in tourism and cordiality ventures, and additionally being the foundation of these businesses. GDSs are the absolute most essential facilitator of the globalization of ITs.
2.5 Porter’s five forces analysis
Threat of new entrants
New entrants in market have a tendency to bring new capacity, the want to obtain market share as well as substantial resources (Baka 2016). The reality of the risk of entry relies upon the obstructions exhibit and on the response from the current suppliers. The internet as a distribution source has moderately high section barriers, constraining every new comer.
Current IT improvement offer new scopes for tour operators. For example, a few visit administrators convey electronic handouts and booking shapes through the Internet straightforwardly to buyers. Bauer (2014) mentioned that this approach gives various essential advantages to visit tour operators. This incorporates focus on niche markets by offering customized packages and a capability for visit tour operators to update leaflets on a regular basis. It likewise essentially minimizes the expenses of motivating forces, rewards and educational trips for travel organizations.
Government’s policies for diminishing purchasers’ power and valuing wars can restrict entry to this dissemination division with so many controls as permit necessities and breaking points on access to specialized devices.
Bargaining power of suppliers
In regard of tourism suppliers, the internet gives a infrastructure to the worldwide appropriation and modest conveyance of tourism-related media data. It additionally enables the customer though the provision of tailor-made items which meet their individual needs. It helps to cross over any barrier between the purchaser and supply in an adaptable and intuitive way. The internet enables associations to skirt parts of the value chain (Bauman et al. 2013). A more fruitful technique is to enter into joint ventures or grow a provider’s site to offer items of competitors.
Bargaining power of customers
The Internet as a channel of distribution has turned out to be a standout amongst the best channels utilized by buyers to look into travel choices, analyze costs and reserve a spot for carrier tickets, lodging rooms and auto rental. In this way, the arrangement of online travel administrations is the absolute best business-to-customer (B2C) portion on the Internet.
The general level of hotel rooms booked online develops immensely every year and will be expanded by 20% in 2005. Besides, the internet is likewise profoundly affecting the interior and outer working methodology inside the cordiality business.
The internet gets to new clients on a worldwide premise and empowers to streamline working strategies. Incorporating every day operations, for example, deals, promoting and conveyance and in addition collecting interest to drive down costs on the acquirement side are a portion of the real advantages of the Internet. The lion’s share of huge tourism and hotel associations are as of now exhibit in the worldwide conveyance frameworks (GDSs). GDSs serve more than 50,000 travel specialists around the world (Benckendorff et al. 2014). The internet is one of the mains appropriation channels, which empower tourism and neighborliness organizations to beat their test of being comprehensively represented.
Threat of substitute products of services
Travel agencies are the fundamental substitute to the internet sales, with regards to purchasing hotelrooms or tourism packages. Direct advertising and different sources of media additionally or informative mean can be utilized rather than the internet. With the Internet it is conceivable to pick up authorization to talk about the items, rather than intrusion advertising, for example, TV advertisements.
Bargaining power of competitors
The competitive environment of Internet and its effect on the tourism and cordiality ventures is broadly perceived as being complicated, dynamic, and exceptionally fragmented. Progressively lodging networks are contending specifically with each other in similar areas. This is an outstanding change for an industry dependent on particular areas to confine the risk of competitiveness (Baka 2016). All major hotel networks are as of now entering the Internet market of offers and interchanges. As associations are subject to their surroundings for assets, they will endeavor to deal with their reliance by creating and looking after techniques. Hotel groups are being compelled to take after different areas by executing showcasing procedures, frequently in light of item separation, development in new markets, high incentive for cash, or rising brands. Such procedures are defined and actualized inside the setting of ecological vulnerability and require a comprehension of industry structure and natural change.
2.6 Challenges of implementing technologies in hospitality industry
Regardless of high level of technological development in hotels in the course of recent years, there stay profound difficulties both as far as proceeding to receive new technology and in creating proper administrative models through which to imagine and to shape the technology towards the age of sustainable competitive advantage. On the other hand, Strategic marketing management contentions that client relationship management (CRM) systems would grow wide and more profound wellspring of client data (Baka 2016). Particularly CRM frameworks experienced poor administrative consciousness of their potential bringing about the age of volumes of conceivably helpful business learning. It is stayed undiscovered by industry specialists and may even have stopped up promoting frameworks, as administrators and workers battled with discovering business use for the information.
At the same time there are challenges from a worker point of view as representatives neglect to adapt to working environment change, frequently being lessened to just making due rather than contributing in any better approach to business forms. In spite of major advance in the course of recent years, the administrative and authoritative difficulties looked by hotels stay soak, somewhat due to the proceeding with improvement of new innovation. In addition, in light of the fact numerous hotels stay behind the early adopters of new technology. In this manner confronting challenges are overcome. At the same time the aggressive condition of hotel organizations have turned out to be more indeterminate and subject to radical change, as more modern customers turn out to be more cost cognizant and less brand faithful.
Bauer (2014) commented that the results can be that hotel organizations that put vigorously in new innovation, yet neglected to build up the essential capacities to consistently build up the innovation, are secured a vital trap, where exorbitant innovation has devoured assets. One noteworthy reason hidden the shirking of making proactive move with respect to innovative change might be the absence of administrative ability to create advancements, for example, CRM. However from a business viewpoint such an approach may seem unreasonable, yet taken from the point of view of chiefs associated in a universe of varying plans of action, the approach might be objective.
On the other hand, outsourcing sales as well as marketing functions are the areas where implementation of technology has an impact. Organizations need to recast familiar organizational as well as functional models that help to transform them into natural extension of customer segmentation and enterprise selling procedure as well as complicated demand chain partnerships (Bauer 2014). In addition, value added direct sales of the organizations need to migrate the role of direct sale for getting better align high-touch.
From organizational perspective, technology has an impact on the marketer and considered as most significant in terms of maintaining a complete scope of related options along with channels, which are used in order to communicate with prospective as well as existing consumers. Adopting technology in marketing channels would be helpful to enhance search engine results, social network and banner ads as well as sponsored online retail content. In addition, internet is changing products as well as services that are available in big way. Internet allows organizations developing new packaged products that provide integrated services like financial as well as estate agent services.
In addition, relational perspective of technology in marketing channel can occur in the activities of upstream that is conducted by the number of channels. It is important to concentrate on the technological perspective of technology. The perspective gives conceptual basis for making a clear positioning of technology (Bauer 2014). Organizations need to recast familiar functional as well as organizational models that help to transform into making natural extension of consumer segmentation. Customer care processes ensuring seamless service as well as improved intimacy across several channel interfaces along with throughout customer life cycle. Organizations need to maximize value based channel partnerships. Moreover, the enterprises need to creatively manage impact of sell-side technologies as well as trading communities that would be helpful for trading communities on making margins as well as pricing.
Marketing insight suggests that hospitality organizations need to embrace technology in order to compete against traditional competitors and entrants, which develop business with the latest technology. Hence, in the changing environment, there are several new models of distribution that needs to be properly designed in order to lead the particular changes. Strategic changes in information management functions need to facilitate mission of the business of the organization by managing information and managed procedure along with information technology.
2.7 The Theory of Distribution Channels
A distribution channel is the conductor from products to client in its least complex frame. In any case, the channel might be any longer than this. For instance, an organization may collect raw materials and ship them to a producer that boats to a distributer and a retailer where customer stands in the end (Verhoef and Lemon 2013). The hypothesis of distribution channels expresses that each organization in the channel must charge enough to pay costs and leave a benefit. However, it is closed to the finish of the channel and pays the most for an item, since it has been increased on its approach to the organization
Thakran and Verma (2013) stated that there are no set costs along the distribution channel. Each organization may charge what the market will bear. At any stage, an organization may offer a rebate to pull in purchasers. However, an organization amidst the channel offers a rebate specifically to shoppers, whatever remains of the channel is removed on the grounds.
Unequal Power in Channels
Power gets unevenly appropriated in a distribution channel. Whoever controls the supply is in the best position to manage terms and costs. In order to neutralize this, purchasers more remote down the channel and regularly shape affiliations so they can buy as a gathering and get equivalent treatment from providers (Benckendorff et al. 2014). Such affiliations anticipate organizations more distant up the channel from exploiting.
If the organization is making a conveyance channel, it is r enquired to choose what number of intimidators need. For instance, a few makers offer specifically to people in general without any middle man (Berezan et al. 2016).
2.8 Cross-Channel Marketing Models
For quite a few years, the cross-channel marketing has impact on the marketing mix with advertising (top-down) models. On the other hand, expansion in the cross-channel following as well as computational power, the new types of promoting attribution (base up) and other option models have showed up lately. In spite of the fact that these models all look to evaluate the relative effect of various media channels, they are very unique in their approach (Zaidan 2017). In addition, keeping in mind that there are a few articles looking at these changed strategies, it has been presently not seem to discover a free unbiased asset that gives a diagram of the subject; thus, this is my endeavor to fill the hole.
Sahli and Legohérel (2016) stated that this review purposefully keeps away from assessment of the methodologies recorded. Every strategy has its own qualities and shortcomings and the decision of which to utilize will rely upon the specific need of the association. Basic approaches to modeling marketing have impact on the process. The most every now and again connected techniques for demonstrating cross-channel showcasing sway today are the accompanying:
The established economic way to deal with promoting mix has the longest history of training and is generally connected today (Bilgihan and Wang 2016). Ordinarily utilized for educating abnormal state spending assignment, this approach commonly utilizes some type of circulated slack relapse to gauge the effect of promoting action on add up to deals.
Generally executed as individual counseling ventures, a few sellers have been attempting to robotize and productize this strategy.
Outline of approach:
Quality: Data-driven measurable approach takes into consideration high prescient ability.
Shortcoming: The bits of knowledge and imagine a scenario in which situations are contingent on granularity of info information.
The touch point based way to deal with advertising attribution was made conceivable for cross-channel following. These models are remarkable in that it takes a look at treat level occasion information, and endeavors to decide the effect of each kind of touch point from arrangement examples and results (Beritelli et al. 2016). In recent years, various sellers have presented showcasing attribution arrangements, either the base up approach alone or in conjunction with a best down approach.
Framework of approach:
Quality: Touch point-level figuring takes into consideration extremely granular attribution and effect appraisal for followed media.
Shortcoming: More elucidating than prescient; can’t without anyone else’s input join disconnected or non-followed online media.
Machine Learning Approach
Operator based models regard people as specialists communicating with to show certain practices and uses computational reenactments to evaluate affect. Application toward the field of promoting has been deferred because of the computational unpredictability included, yet late years have seen endeavors to apply this way to deal with advertising demonstrating.
Layout of approach:
Quality: Individual-based models take into consideration adaptable reproductions at client statistic level.
Shortcoming: Accuracy of results is just as substantial as the behavioral suspicions for the business and statistic section.
Fate of Marketing Impact Assessment
The following decade will see facilitate refinement and mix of these ways to deal with displaying advertising sway. In any case, there is no such thing as an impeccable model. It is difficult to represent every one of the factors that may affect business or advertising execution, and some for example, a viral promoting achievement or securities exchange crash are essentially difficult to anticipate.
After standard model exactness and multifaceted nature achieves a level, these eccentric or unaccounted-for variables will assume an expansive part in deciding how precise and valuable the models are practically speaking (Bonsón Ponte et al. 2015). Accordingly, the key differentiator is probably going to end up plainly ongoing reenactment and prescriptive abilities:
2.9 Issues in marketing channel of hospitality industry
It is important to identify the marketing issues in the marketing channel of hospitality industry. When making the underlying reservation, the customer will regularly visit the different distribution channels, counting the hotel’s own website, looking for the least rate for hotels inside their picked section and area (Fernández-Cavia et al. 2017). Since rates regularly change before their reservation landing date, purchasers confront vulnerability in rates after some time important for a similar hotel in a given market. Customers will frequently defer a buy to guarantee they are getting the best bargain (Zhu et al. 2017). On the other hand, because of these joined powers, buyers will regularly keep on searching for a lower valued hotel room. However, a reasonable substitute is discovered the client will wipe out the underlying reservation and re-book at the lower rate.
Destructive channel conflict can affect available position of hotels in a few routes with roundabout consequences for customer fulfillment. The channels contending begin to concentrate on the most straightforward approaches to win the deal in a conflict circumstance, (for example, dropping cost) and start to disregard more imperative client purchasing necessities. Deals compel profitability may decay as the business drive both inside and in the dispersion channels move toward becoming de-motivated and less drew in, consequently dissolving deals volumes (Burns et al. 2016). This can likewise lead to dissatisfaction with channel accomplices, dissolving the inn’s income position in the commercial center and its image picture. Further, channel conflicts frequently affect antagonistically on client connections and the conveyance of administration. These results will prompt a negative effect on consumer loyalty. Channel conflict is not really broken; it can be helpful when it prompts more powerful adjustment to a changing situation and keeping the channel individuals focused and responsive. Most channel conflict is viewed as rivalry and a vital part of the operational procedure, however it is essential to decide at which point channel conflict winds up noticeably dangerous in the deals process and meddles with channel administration procedure, advertise position and profitability, and how it at last affects consumer loyalty.
However, hotels need to decide at the point when channel conflict winds up plainly dangerous and to actualize arrangements. The principle center and need for any hotelier ought to be to offer as much stock by means of the most financially smart conveyance channels that can conceivably create the most appointments, while protecting rate equality also, value disintegration (Nwakanma et al. 2014). In the perspective of a few specialists, channel conflict between hoteliers and e-wholesalers postures major issues inside the business requiring another plan of action that will synergize hotel income objectives with both conventional and web based business pathways.
The vital part of multichannel integration in customer relationship management (CRM) with the goal proposing needs an organized way to deal with the improvement of an incorporated multichannel technique (Bonn et al. 2016). Elective points of view of CRM are surveyed and it is reasoned that appropriation of a vital viewpoint is basic for progress. Multichannel joining is set as one of the key cross-utilitarian procedures in CRM methodology advancement. The idea of industry channel structure and channel members, channel choices, and option channel methodologies are inspected. The client encounter is investigated both inside and crosswise over channels. Diagnostic instruments, for example, showcase structure maps, the client relationship life cycle, and request chain investigation, are depicted. Enter projects in building a coordinated multichannel procedure should be inspected.
2.10 Strategies for overcoming channel conflict
Scaglione and Schegg (2015) stated that hospitality industry needs to create procedures that will empower them to oversee channel conflict. The objective is to decide when channel conflict winds up plainly damaging and to execute arrangements. Channel individuals ought to have the capacity to work adequately together as long as strategies and procedures are set up to deal with the conflicts they confront and to turn them into commonly workable and beneficial comes about (Webb 2016). It is the business of channel supervisors to completely comprehend who purchase and where they purchase, so items can be put in the most ideal channels and valued appropriately. Estimating for several channels can be exceptionally confused and even cautious arranging may on occasion not empower the hotel or tourism provider to stay away from channel conflict. The suitable adjust is to have enough market introduction with sufficient dispersion channels speaking to one’s items yet to likewise have enough brought together control furthermore, to deal with the channels firmly to have a solid however focused circumstance amongst hoteliers and their merchants.
Figure 1: Market coverage and channel conflict
(Source: Ahmad 2015 p.241)
The above figure shows the primary options. The best circle illuminates that while various scopes by means of numerous dissemination channels gives an hotel most extreme presentation, the hospitality industry may encounter bring down general income because of outsider commissions (Zopounidis et al. 2014). For this situation, the market offer of own particular deals is probably going to decrease against the hotel’s outsider distributed channels.
The center circle portrays a circumstance of ideal market scope whereby the hotel encounters a satisfactory measure of market presentation (Cobos et al. 2016). The base circle portrays a circumstance where too little advertise scope, like utilizing excessively few circulation channels, will bring about low market introduction. Destructive channel conflict can be overseen through monetary and auxiliary controls. These controls put structure around a channel system to constrain the potential for undue ruinous conflict. Basic controls, specifically through management as well as communication, lay the ground governs inside which conflict is overseen (Kim et al. 2015). Because of their want to recapture more control over their estimating of branding, hotel organizations have concocted components to both bypass online travel benefit organizations. In addition, it gives disincentives to booking rooms with these conveyance channels. The watched pursuit and switch conduct of buyers and the misfortune valuing control by hotel organizations are both associated with motivating forces in the market consolidated with the approach of Internet OTS organizations. (Chen et al. 2015). The purpose is to discourage clients from purchasing from the web based booking mediators what’s more, go straight to the own particular site of hotel.
For a considerable length of time, the channel manager remained an authoritative position discovered primarily in course readings (Xiang et al. 2015). As of now, in any case, enticing confirmation has uncovered that advertising channel administration comes mainly under the domain of the business director. However, there are for the most part levels of offers supervisors included or similarly associated with channel manager (Saleh et al. 2015). The channel director preparing must be custom made for particular levels of offers administration keeping in mind the end goal to accomplish wanted channel adequacy and productivity.
In addition, any distributed research has investigated whether channel administration association changes at various levels in the business manager chain of command. In this time of channel dynamism, fruitful organizations must decide the particular contribution of every deal administration level in channel administration with the goal that proper preparing and support can be given to improve execution in this basic territory of market rivalry. In order to address the previous issues, information were drawn from an irregular national example of offers supervisors. Chen, Murphy and Knecht (2016) commented that results show that business manager at all progressive levels take an interest in controlling different parts of advertising channel administration.
2.11 Partnership in hospitality industry
Organization between hotels can be set up to bypass the need to utilize outsider online travel locales. An illustration is Travelweb.com, with accomplices Hilton Hotels, Hyatt, Marriott International, Intercontinental Hotels Group, Starwood Hotels and Resorts and Priceline.com. This website was made as an online travel organization (Agag and El-Masry 2017). However, the capacity to control cost marking down in this way is needy upon the extent of the aggregate rooms controlled by the accomplices in any one market. The accomplishment of this model accordingly relies upon the measure of stock gave by the lodging gatherings. In the event that clients are dismissed by insufficient stock, it debilitates future signing into this site.
The accomplishment of this evaluating model has demonstrated to be extremely constrained so far (Yap et al. 2014). This is intended to give a reasonable disincentive to clients trying to find bring down costs on rebate online travel specialists by denying any client steadfastness focuses for that remain. This model accepts that in the customer basic leadership process focuses are a need and this is not generally the case. Additionally, this motivating force will just work up to the point where customers esteem the peripheral miles earned by that stay more than the sum spared per room night by setting up for the markdown online travel benefit organization.
It is vital to recognize correspondence based control and diversifying (Sanliöz Özgen and Kozak 2015). This investigation clarifies the method of control picked as far as a hypothetical structure which obtains from office hypothesis and exchange cost examination. The penchant to establishment universally was observed to be specifically identified with (i) checking costs related with land and social separation between the primary and its outside specialists, (ii) the global experience, and (iii) the level of host nations’ logical vulnerability yet contrarily identified with the administration firm level of brand name resource specificity.
2.12 Technology in marketing channels
In the current study, advancement of technology in marketing channels has been dealt with in reference to particular zones of development or to single classes of subjects inside channels. Oz (2015) commented that less investigation has been led with point of view alluding to the channel in general. Significant commitments have concentrated on advancement in retailing as product development for dissemination organizations, or as advancement in the store network. For this situation, essential consideration has been set on technological issues, especially those identifying with data and correspondence innovations (ICT), and the suggestions that these advancements may involve for showcasing channels.
From one perspective, it can be viewed as a key movement for both technological and dissemination firms to gain an upper hand along the circulation channel. Then again, it could be viewed as a changing procedure of the monetary capacity of the distribution frameworks. In the two cases, advancement originates from the selections of firms along the channel, which progressively include their accomplices, upstream and downstream of the system they have a place with (Yoo and Lee 2015). This starts developments progressively centered around the vertical system, more than on the individual firms. As of late, the advancement of technology forms in marketing channels have happened with high power and speed, particularly following the progressions prodded by innovation that permitted the appropriation of more proficient authoritative arrangements. As a result, an expanded intensity for all organizations in the channel has developed. Another factor which has significantly invigorated creative procedures in promoting channels was the procedure of modernization of the retail division that in late decades has continuously reinforced and improved the part of retailers.
Gustavo (2013) commented that indeed, even the social changes and new behavioral examples of the last request, have invigorated advancements intended to oblige new esteems concerning purchaser merchandise and their dissemination systems. Such flow has happened with the advancement of private name items, the development of retailing showcasing, the expanding downstream mix by producers and then again the upstream joining of the retailers store network.
The development in dissemination channels has been recognized as innovation based, with reference to the open doors offered by advancement in data and correspondence advances (ICT), and market-based. Kasemsap (2017) stated that market based factors may thus be recognized sought after based variables, identified with changes in the qualities and practices of clients that organizations try to agree to competition based elements, with particular reference to a separation and speedy reaction to the last request changes approach. In many cases, this rationale depends on the standards of time-based competition, underscoring the estimation of the time variable in seeking after an upper hand, and arranging promoting approaches on a point of view alluded to contenders, at times more than to the last request (Wang and Wu 2014). Advancement in promoting channels can reanalyze following three alternate points of view.
2.13 Technological advancement in relations of final demand
The most critical fronts of technological advancement in the associations with the last customer are checkout innovations, electronic and portable installment frameworks, separate selling (mainly on-line deals), and Self-Service Technologies (SSTs, for example, candy machines and sight and sound stands.
Checkout or Point of offers (POS) advancements is connected to areas where a retail exchange happens. A checkout alludes to a POS terminal or all the more by and large to the equipment and programming utilized for checkouts, the likeness electronic money enrolls (Bharwani et al. 2016). A POS terminal deals with the offering procedure by sales representative open interface. Future advancement of the innovation is towards electronic POS programming that can be keeping running on any computer with an Internet association and supported program, without extra programming establishments or manual updates required.
Electronic POS programming is facilitated on secure servers in numerous server farms with continuous reinforcements. With fast associations ending up more common, electronic POS arrangements can be more dependable (Godey et al. 2016). The advantages of POS innovation are in the likelihood to better oversee stock, by consolidating deals information with the sum and cost of the buys. This empowers the firm to dissect the benefit of individual items and oversee stock all the more precisely and rapidly. In addition, with information on the rate of turn and the efficiency of items, it is conceivable to advance item show in the store using particular space administration programming (Nabil Almunawar et al. 2013). In addition, POS innovation, electronic rack mark (ESL) frameworks can be embraced to lead dynamic estimating arrangements that may permit value changes relying upon time of day and levels of client activity in the store. An ESL framework comprises of a computer, neighborhood remote correspondence organize and electronic name. The framework acquires data from the store scanner database, and communicates it to the rack marks. The framework consistently screens the ESLs to ensure that they are available and that they show the right data.
ESL frameworks yield 100% accuracy on the grounds that the money enlist costs are indistinguishable to the costs showed on the ESLs as both are connected to a similar database. ESL frameworks are exorbitant to purchase and maintain. It has been quite a long while since imaginative advancements were being tried different things with to make checkout systems quicker and more work forces efficient (Sun et al. 2016).
The spread of these advancements, nonetheless, requires that makers apply RFID labels to every single individual item. RFID label information limit is sufficiently huge that every individual tag will have a special code, while current standardized identifications are restricted to a solitary sort code for specific item (Osarenkhoe et al. 2014). The uniqueness of RFID labels implies that an item might be followed resource moves from area to area, at last winding up in the buyer’s hands.
2.14 Use of technology in marketing channel
It has been quite a long while since innovative technologies were being tried different things with to make checkout techniques quicker and more staff efficient. The appropriation of self-scanning systems, which are as of now the most utilized trials in advance, is by all accounts just a middle arrangement contrasted with advances in view of radio frequency transmissions. The spread of these advances, important, requires that makers apply RFID labels to every individual item (Perez et al. 2013). RFID label information limit is sufficiently huge that every individual tag will have a special code, while current standardized identifications are restricted to a solitary sort code for specific item. The uniqueness of RFID labels implies that an item might be followed resource moves from area to area, at long last winding up in the shopper’s hands. This may battle robbery and different types of item misfortune.
This may likewise help organizations to adapt to quality insufficiencies and coming about review battles, yet in addition adds to worry about following and profiling of shoppers after the deal. Identified with POS-scanner advances are electronic and portable installment frameworks that are in reality under progress. The broad utilization of credit and platinum cards for vicinity buys has officially exhibited the likelihood of significantly diminishing the volume of money based exchanges (Abou?Shouk et al. 2013). Versatile installments are installments for products, administrations, and bill with a cell phone, (for example, a cell phone, PDA, or personal digital assistant (PDA) by exploiting remote other correspondence advances. Versatile installment frameworks are reasonable for nearness and small scale installments. This is because of the considerable open door for portable installments to lessen the quantity of little buys paid with money.
A few effective versatile installments frameworks have just been propelled keeping in mind the end goal to improve the comfort of small scale installments for nearby everyday consumptions. These arrangements have been primarily received by different snappy administration situated enterprises, for example, open transportation, toll stalls, service stations, fast-food eateries, retail candy machines and ski resort ticketing (Assimakopoulos et al. 2015). Payments for physical products are likewise conceivable and both at distributing and ticketing machines adjust kept an eye on POS terminals.
Buhalis and Inversini (2014) stated that versatile installments, as every single other installment, fall comprehensively into two classifications: installments and internet managing account installments coordinate charge assignments, or electronic receipt acknowledgment. Versatile installments can possibly reform techniques for paying items and administrations. However, given the present circumstance in Europe it is uncertain regardless of whether portable installments are headed to getting to be noticeably standard installment benefit.
On the other hand, artificial intelligence brings a big opportunity in marketing channel. Voice support system helps to provide untapped scope in the channel. There are more than three quarters of the marketers in a survey where a better comprehension of consumer intent, patterns as well as preferences is considered as the key in order to deliver appropriate outcome. Use of AI can be helpful in marketing automation and campaign management. AI comprehends similarities of the demographics, campaigns along with calls to action. The technology understands the procedure of making successful in different locations and suggests using successful strategies. The knowledge of outside words can be mixed with the help of digital marketing performance. The marketers are no longer limited through physical world in order to promote their brand. Marketing with artificial intelligence can be explored with the help of social media such as Facebook, Twitter and Google. The immersive nature of artificial intelligence is helpful in developing improved medium in order to tell stories, which can bring consumers deeper into the content as well as experiences.
2.15 Legal constraints in marketing channels
Objective of marketing channels in hospitality industry ought to be expressed regarding the coveted service level of target clients. Usually, an organization can distinguish a few fragments needing diverse levels of channel benefit. The organization ought to choose which portions conserve and the best directs to use in simplicity. In each portion, the organization needs to limit the aggregate channel cost of providing clients, while additionally meeting their service necessities. For the full business capability of electronic trade and internet are abused by the tourism and cordiality industry and its customers. In this perspective, a few issues must be considered that incorporates an expansion of security of transmissions, copyright issues, reduction of user confusion and dissatisfaction, establishment of pricing structures for distribution of information as well as reservations and enhancement of the standardization of information and reservation procedures.
The organization’s channel objectives are likewise impacted by the idea of its items, organization arrangements, displaying mediators, contenders and the earth (Lin et al. 2017). For instance, fresh items require more straightforward displaying to maintain a strategic distance from delays and an excessive amount of dealing with. Organization attributes likewise assume a critical part in hospitality industry. Besides, an organization advertising procedure in view of quick client conveyance influences the capacities that the organization needs its delegates to play out, the quantity of its outlets and the selection of its transportation strategies.
The organization must discover middle people that are ready and ready to play out the required undertakings. When all is said in done, middle people contrast in their capacities to deal with advancement, client contact, stockpiling and credit (Kriemadis et al. 2017). For instance, producers’ delegates who circular segment employed by a few distinct firms can contact clients effortlessly per client on the grounds that few customers share the aggregate cost. However, the offering exertion behind the item is less extreme than if the organization’s own business compel did the offering.
When outlining its channels, an organization should likewise consider its rivals’ channels. Now and again, an organization might need to contend in or close outlets that convey contenders’ items. Accordingly organizations may need their brands to be shown by contending brands: around the local area or downtown areas. Burger King needs to situate close McDonald’s; Pizza land needs to be sited close Pizza Hut; Sony, Panasonic and Philips sound video frameworks all seek floor space in comparative retail outlets; Nestle and Mars candy store brands need to be situated next to each other, and forcefully vie for rack space, in bite the dust same basic supply outlets.
In different cases, makers may stay away from the channels utilized by contenders. Avon, for instance, chose not to contend with different beauty care products creators for rare positions in retail locations and, rather, set up a beneficial way to-entryway offering operation in the home and abroad markets. At long last, natural variables, for example, financial conditions and legitimate imperatives, affect channel outline choices. For instance, in a discouraged economy, makers need to appropriate their products in the most prudent way (Cook et al. 2014). Utilizing shorter channels and dropping undecided administrations that ads to the last cost of the merchandise. Legitimate directions forestall channel courses of action that may diminish rivalry generously or make a restraining infrastructure. In nations where governments are effectively promising free rivalry, such administrative confinements have kept aggressive stations open, as on account of media communications in the United Kingdom, where organizations, for example, Cable and Wireless, logical and the privatized BT exist in parallel co supply telephone utilities.
A compelling channel procedure depends on making a differential preferred standpoint that enables the firm to contend effectively in its objective markets. Thus, the channels must have the information and experience not exclusively to serve these sections viably. The European development apparatus creator JCB perceived that its initial issues in the French market were because of the deficiencies of its circulation outlet. These operators sold the items, however were not equipped for giving the administration offices basic to focused accomplishment in the market. JCB accordingly set up an organization claimed full benefit circulation arrange that was adequately skillful to convey the organization’s item points of interest and give the esteem included administrations expected by clients.
In this chapter of the research, literatures from different sources are reviewed for understanding the role of emerging technology in marketing channel. There are several technologies available such as automation tool, advanced content creation tool, visual storytelling used for marketing channels. It results improved method for business in order to gain competitive advantages. Use of artificial intelligence is helpful to enable transition of basic marketing to generate helpful information and anticipating the users require as well as offering recommendations. The most successful marketers take benefits of the particular trends. The organizations are ahead in the market.
Chapter 3: Research methodology
In look into strategy, certain hypotheses and ideas are embraced to have better and more profound examination on the chose point for investigate. The execution of the exploration approach comprehends the system being embraced to dissect the different elements that influence the subjective conclusion of researchers identified with use of technology in marketing channel of hospitality industry (Mackey and Gass 2015). In spite of this reality, the point by point procedure of research strategy may frequently prompt mistakes that in actuality come about into specific impediments inside the research. In addition, the researcher has connected each detail procedure of research approach that can aid the examination on the role of emerging technologies in hospitality industry.
3.2 Research Philosophy
In a research methodology, usage of research philosophy helps in choosing the correct approach to increase unobtrusive components of the research point (Taylor et al. 2015). Research philosophy helps in clearing up the assumption strategy endeavored by an authority while driving an examination point. In any case, the thinking systems for surveying a particular point can change so the assurance of investigation hypothesis ought to be feasible and in genuine game plan. The broad and standard sorts of epistemology that is a bit of hypothesis are positivism, interpretivism and legitimacy.
Positivism is considered as a subject of thinking assistants being used of method of reasoning that aides in looking at the shrouded realities and information in an investigative way (Brinkmann 2014). Yet summoned by investigative strategy, positivism tries to rejects control with the goal that inconspicuous component recognition and getting the hang of get-together is engaged. Beside correspondences, an expert under interpretative amass successfully shares in deciphering the data or the delayed consequence of the examination to suit the need of the investigation. All in all, realness is a mixed procedure of positivism and interpretative and along these lines incorporates characteristics of both the rationalities. Validness delineates utilization of human feelings and helpers in focusing on the collaboration’s of individuals nearby the substances.
3.2.1 Justification for the picked Philosophy
Positivism as associated in the present setting helps in better examination of the disguised convictions and information related to the diverse segments of emerging technologies in marketing channel of hospitality industry.
3.3 Research Approach
Neuman and Robson (2014) stated that an approach for a research is required so the setup required coordinating the investigation is revealed. A particular research approach can be endeavored for ponder in two wide strategies for either deductive or inductive. Inductive approach is an investigation that helpers in pondering an examination moment that enough data on the blessed one are not open. The fundamental time of inductive system is discernment that associates in expanding critical information and develops the method for the examination in like way. In any case, inductive approach fills the need of new speculation working for any subject. Then again, deductive strategy is used as a technique that portrays the sensible utilization of the speculations focused on to get to substance of the examination paper.
Deductive approach hopes to build a theory with more points of interest and thoughts of data examination. Regardless, dependent upon the method for the examination and research subject, the assurance for investigation system is enhanced that can help in examination of the point.
3.3.1 Justification for the picked Approach
In the present research, the subject will endeavor to consider the thoughts related to gathering of emerging technologies in marketing channel of hospitality industry (Tarone et al. 2013). The distinctive segments associated with the use of technology need a decision of approach that can help in understanding at a much correct and clear way. In any case, inductive procedure fails to be executed in the present subject, as the pro complements no new thoughts or theories. Further, some portion of the distinctive parts of the use of technology can be analyzed with the approach.
3.4 Research Design
In the midst of the strategy of data aggregation, a particular kind of procedure is associated that helpers in better portrayal of the investigation design. The different sorts of research outline that can be connected in scholarly research are as exploratory, illustrative and engaging.
Humphries (2017) stated exploratory design helps an expert in perceiving diverse sorts of musings and contemplations required to complete an examination paper. Regardless, educational investigation design depicts the occasion of scenes or events and correspondingly effect of the occurrence. On account of the immaterial illumination of conditions and final products relationship, invasion unpretentious components of an investigation get the chance to be compelled. At long last, illustrative investigation goes for getting purposes of enthusiasm as to state occasion of events with inconspicuous component and fitting depiction of the subject.
3.4.1 Justification for selecting the design
Utilization of educational was maintained a strategic distance from as it helps the possibility of longitudinal examination that was doubtful with the particular subject (Bauer 2014). Besides that, edifying framework could portray the purpose of intrigue strategy required in the utilization of emerging technologies in marketing channel of hospitality industry. The level of effect conceded by the diverse segments associated with the use of technology and environment over the gathering of the use of technology is reasonably examined with the help of explaining design like the picked investigate plot.
3.5 Data Collection Procedure
Data collection process is considered as one of the major processes in a research. Data is generally collected from two types of sources such as primary sources and secondary sources such as books, journals and websites.
3.5.1 Data Sources: Primary and Secondary
In the present investigation, basic sources included meeting sessions with the staffs of the hospitality industry in getting information as per the examination objectives (Arcade et al. 2015). Besides that, the different sources, for example, writing audit, web, books and diaries can be considered as discretionary hotspots for accumulation of information.
3.6 Population and Sample
In the present research work, staffs of different hospitality organizations are selected as population for the research. Population can be defined as number of people involved or influenced by a number of contents of the research procedure. In the present research, people from different organizations have been selected for the research.
3.6.1 Sampling Technique
Test considered for concentrate the different components related with the use of emerging technologies in marketing channel of hospitality industry that can suit the criteria of the exploration point (Reynolds et al. 2014). The sample for researchers was direct arbitrary likelihood where no criteria for assurance were chosen. On the other hand, the staffs of the organizations were asked for collaboration where review was led considering Likert’s scale rating from 1 to 5. On the other hand, administrators were considered for meeting as indicated by their versatile logbook and timings.
3.6.2 Sample Size
Wiek and Lang (2016) stated that the sample for this specific research was partitioned into two gatherings as one for Quantitative analysis. In order to focus on the quantitative examination, 65 staffs were met with the help of online surveys.
3.7 Data Analysis Techniques: Quantitative
Qualitative data is helpful in order to record data that can incorporate for doing better portrayal of the point of research. It helps in incorporating theoretical approaches in the pragmatic way (Riedl et al. 2014). Quantitative data of course applies the data that is valuable in recording data of significant example sizes. In the present research, quantitative method has been selected over qualitative data analysis as it gives greater adaptability to the expert as far as the specimen size and populace. Laborers and directors both were considered for the quantitative examination techniques.
3.8 Ethical Considerations
In the midst of the method of investigation methodology, an examiner needs to take after an arrangement of rule that assistants in recognizing the wrong and right course of action of practices required for allotment in the midst of the system (Jaggar 2015). The process breaks down the piece of segments associated with the use of emerging technologies endeavored to take after couple of good thoughts that can help in adding standardization to the examination point.
3.9 Research Limitations
Roberts (2013) commented that an investigation ponder that can help in getting results of the concerned point. Limitations inside an investigation subject are normal that moreover portrays the domain with restricted degree and limits.
3.10 Time Horizons
(Refer to Appendix)
The present part depicted the distinctive investigation instruments of assurance that can help in better examination of the point. With the help of this segment, the expert endeavored to alter the method for the investigation close by the available examination frameworks so possibly the best research approach is surrounded. The apparatuses more fitting to decide the different components related with making arrangements for analyzing the role of emerging technologies in marketing channel of hospitality industry.
Chapter 4: Findings and analysis
In the present chapter data gather from primary sources are analyzed. In the present study, 65 numbers of staffs from different hospitality organizations have been selected. In order to get opinion from them, survey questionnaires have been formed. In this aspect, data are analyzed with the help of quantitative analysis. Accumulated data are presented in the form of table and graph. Thus, excel sheet has been considered as analysis sheet.
4.2 Quantitative analysis
|Options||Frequency (%)||Total frequency||Total respondents|
|6 months-1 year||23.07%||15||65|
|2 years- 4 years||30.76%||20||65|
|5 years-8 years||15.38%||10||65|
|9 years-10 years||13.84%||9||65|
|More than 10 years||16.92%||11||65|
Table 1: Time period of involving with hospitality industry
Figure 2: Time period of involving with hospitality industry
Findings and analysis
According to the data presented in table and graph clearly indicates that there are 23.07% respondents out of total number of respondents are associated with hospitality industry since 6 months to 1 year. Approximately 30.76% respondents out of total number of respondents are related with the sector for 2 to 4 years. In addition, 15.38% participants work in hospitality industry for 5 to 8 years. However, 13.84% respondents out of total number of respondents are associated with the hospitality industry for 9 to 10 years. There are nearly 16.92% respondents out of total number of respondents in the survey are involving with the hospitality industry for more than 10 years.
The result indicates that more number of people is associated with the industry since 2 years to 4 years. Thus, it is important to consider the use of emerging technology in this field. The complexity of the decisions has been increased widely through various social, cultural and economic as well as political patterns. On the other hand, analyzing the domestic marketing channels along with concepts associated with channel management theory. In this aspect, satisfaction and commitment have an important role to be played. The strategic importance, as well as complexity of distribution channel, is significant in order to scrutinize prior scholarship in the aspect.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 2: Role of marketing channel in hospitality industry
Figure 3: Role of marketing channel in hospitality industry
Findings and analysis
According to the data presented in table and graph indicates that marketing channel has an important role in hospitality industry. There are 30.76% respondents out of total number of respondents in the survey strongly agree that marketing channel provides potential benefits to the industry. In addition, 38.46% respondents agree with the concept. However, 7.69% respondents remain neutral while answering the question as they are confused with the role. In addition, 15.38% respondents in the survey disagree that marketing channel plays a crucial role in hospitality industry. In addition, 7.69% participants strongly disagree with the role.
In hospitality industry, it is important to identify the role of technology in marketing channel. From the above chart and table, it can be clearly said that most of the people in the hospitality industry are agreed on the matter. Technology has an impact on the marketing as well as advertising methods. Advertising and marketing can dominate human environment. Use of information technology can be helpful for marketer that can be helpful in managing performance. It is important to consider networked technologies that can provide appropriate access. Technology allows the advertisers for responding quickly changes in the marketplace. Hence, role of emerging technology in hospitality industry cannot be neglected.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 3: Technological advancement in marketing channel
Figure 4: Technological advancement in marketing channel
Findings and analysis
It is important to analyze the role of technology in improvement of marketing channels. As per the data presented in table, 23.07% participants out of total number of respondents strongly agree that technological advancement provides several benefits in marketing channel. There are 30.76% respondents out of total number of respondents agree with the concept. 7.69% participants remain neutral. However, 23.07% of respondent disagree with the statement. In addition, 15.38% respondents out of total number of respondents in the survey strongly disagree with the statement.
Thus, it can be said that significant commitments have concentrated on advancement in retailing as product development for dissemination organizations, or advancement in the store network. For this situation, essential consideration has been set on technological issues, especially those identifying with data and correspondence innovations (ICT), and the suggestions that these advancements may involve for marketing channels. Alluding to marketing channels, the idea of development can be seen with regards to twofold layer through which it communicates. From one perspective, it can be viewed as a key movement for both technological and dissemination firms to gain an upper hand along the circulation channel.
In addition, it could be viewed as a changing procedure of the monetary capacity of the distribution frameworks. In the two cases, advancement originates from the selections of firms along the channel, which progressively include their accomplices, upstream and downstream of the system they have a place with (Yoo and Lee 2015). This starts developments progressively centered around the vertical system, more than on the individual firms. As of late, the advancement of technology forms in marketing channels has happened with high power and speed, particularly following the progressions prodded by innovation that permitted the appropriation of more proficient authoritative arrangements. As a result, an expanded intensity for all organizations in the channel has developed. Another factor which has significantly invigorated creative procedures in promoting channels was the procedure of modernization of the retail division that in late decades has continuously reinforced and improved the part of retailers.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 4: Use of technology in marketing channel
Figure 5: Use of technology in marketing channe
Findings and analysis
According to the data presented in table clearly indicates that 23.07% respondents out of total number of respondents think that technology helps in retailing sector of marketing channel. On the other hand, 30.76% respondents think that wholesaling sector is improved with the help of technological advancement. In addition, 15.38% respondents think that franchising can be enhanced with the help of technology. Same number of people thinks that technology enhances distributing department of marketing channel. There are approximately 15.38% respondents out of total number of respondents think that technology improves logistics sector.
Check out or Point of offers (POS) advancements is connected to areas where a retail exchange happens. Future advancement of the innovation is towards electronic POS programming that can be kept running on any COMPUTER with an Internet association and supported program, without extra programming establishments or manual updates required. Moreover, electronic POS programming is facilitated on secure servers in numerous server farms with continuous reinforcements. With fast associations ending up more common, electronic POS arrangements can be more dependable. The advantages of POS innovation are in the likelihood to better oversee stock, by consolidating deals information with the sum and cost of the buys. This empowers the firm to dissect the benefit of individual items and oversee stock all the more precisely and rapidly. In addition, with information on the rate of turn and the efficiency of items, it is conceivable to advance item shown in the store using particular space administration programming
|Options||Frequency (%)||Total frequency||Total respondents|
Table 5: Legal constraints in technology
Figure 6: Legal constraints in technology
Findings and analysis
Even though implementation of technology is helpful for marketing channel, there are some constraints included. There are 30.76% respondents out of total number of participants strongly agree that implementation of technology leads to face legal constraints for the organization. 23.07% respondents out of total number of participants agree with the statement. However, 7.69% participants in the survey are neutral as they are confused about the matter. In addition, 23.07% respondents disagree, whereas 15.38% respondents out of total number of respondents strongly disagree with the statement.
The objective of marketing channels in hospitality industry ought to be expressed regarding the coveted service level of target clients. Normally, an organization can distinguish a few fragments needing diverse levels of channel benefit. The organization ought to choose which portions conserve and the best direct to use in simplicity. In each portion, the organization needs to limit the aggregate channel cost of providing clients, while additionally meeting their service necessities. The channel objectives are likewise impacted by the idea of its items, organization arrangements, marketing mediators, contenders and the earth. Item qualities incredibly influence channel outline. For instance, perishable items require more straightforward marketing to maintain a strategic distance from delays and an excessive amount of dealing with. Cumbersome products, for example, building materials, and require channels visit limit shipping separation and the measure of taking care of.
The organization attributes likewise assume a critical part of the hospitality industry. For instance, the organization’s size and monetary circumstance figure out which advertising capacities it can deal with itself and which it must provide for middle people. Besides, an organization advertising procedure in view of quick client conveyance influences the capacities that the organization needs its delegates to play out, the quantity of its outlets and the selection of its transportation strategies.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 6: Technology in managing conflict
Figure 7: Technology in managing conflict
Findings and analysis
Managing conflict is one of the important aspects in marketing channel. There are 30.76% respondents out of total number of respondents strongly agree with the role of technology in managing conflicts. In addition, 27.69% respondents agree with the statement. However, 3.07% respondents remain neutral. There are 15.38% respondents out of total number of respondents disagree with the role of technology in managing conflict. There are 23.07% respondents out of total number of respondents strongly disagree with the statement.
The objective of marketing channels in hospitality industry ought to be expressed regarding the coveted service level of target clients. Normally, an organization can distinguish a few fragments needing diverse levels of channel benefit. The organization ought to choose which portions conserve and the best direct to use in simplicity. In each portion, the organization needs to limit the aggregate channel cost of providing clients, while additionally meeting their service necessities.
The organization’s channel objectives are likewise impacted by the idea of its items, organization arrangements, marketing mediators, contenders and the earth. Item qualities incredibly influence channel outline. For instance, perishable items require more straightforward marketing to maintain a strategic distance from delays and an excessive amount of dealing with. Cumbersome products, for example, building materials, and require channels visit limit shipping separation and the measure of taking care of. The organization attributes likewise assume a critical part of the hospitality industry. For instance, the organization’s size and monetary circumstance figure out which advertising capacities it can deal with itself and which it must provide for middle people. Besides, an organization advertising procedure in view of quick client conveyance influences the capacities that the organization needs its delegates to play out, the quantity of its outlets and the selection of its transportation strategies.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 7: Decision making process in business
Figure 8: Decision making process in business
Findings and analysis
In a business, decision making process has an important role. According to the data presented in table and graph clearly shows that 38.46% respondents out of total number of respondents strongly agree with the statement, whereas 30.76% participants agree with the statement. There are 7.69% respondents remain neutral on answering the question. Approximately 15.38% respondents disagree with the statement, whereas 7.69% participants in the survey strongly disagree with the effectiveness of decision making process in a business organization.
It has been quite a long while since innovative technologies were being tried different things with to make checkout techniques quicker and more staff efficient. The appropriation of self-scanning systems, which are as of now the most utilized trials in advance, is by all accounts just a middle arrangement contrasted with advances in view of radio frequency transmissions. The spread of these advances, important, requires that makers apply RFID labels to every individual item. RFID label information limit is sufficiently huge that every individual tag will have a special code, while currently standardized identifications are restricted to a solitary sort code for the specific item. The uniqueness of RFID labels implies that an item might be followed resource moves from area to area, at long last winding up in the shopper’s hands.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 8: Emerging technologies in decision making process
Figure 9: Emerging technologies in decision making process
Findings and analysis
As decision making process has an important role in business, it is required to enhance the process by effective process or components. According to the data presented in table and graph shows that 30.76 % respondents in the survey strongly agree with the effectiveness of technology in improving decision making process, whereas same number of respondents also agree on this. However, 3.07% respondents remain neutral. On the other hand, 23.07% respondents and 12.30% respondents respectively disagree and strongly disagree with the concept. At present days, everything is convenient as well as more accessible for advances in technology across most of the sectors.
From the above table and graph, it can be clearly stated it is important to implement emerging technologies in the process of decision making. The best practices are important to manage right offers for right customers. On the other hand, best practices as well as rules for business. In addition, it helps to deliver related and personalized messages in the real time context. Creation of true multi-channel dialogues can increase the rate of response and enhance revenue along with probability. This process helps to take proper decision. Leading management though delivering actionable and prioritized leads can be helpful with higher follow-up as well as closure rate. It is important to ensure that leading follow-up can make consistently strike on the matter. Email marketing is one of the important things that help to develop and empower local marketers for pursuing scopes. Moreover, it improves collaboration for cross-channel campaigns.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 9: Technology for global presence
Figure 10: Technology for global presence
Findings and analysis
According to the data presented in table and graph, there are 38.46% respondents out of total number of respondents strongly agree that implication of emerging technology would be helpful for the organization to have global presence. In addition, 30.76% respondents out of total number of respondents agree with the concept. On the other hand, 12.30% respondents and 15.38% respondents respectively disagree and strongly disagree with the impact of technology for global presence. The accomplishment of this evaluating model has demonstrated to be extremely constrained so far.
Thus, it can be said that most of the respondents in the survey are agreed that implementation of technology is helpful for meeting the demands of the organization. There are most of the respondents in the survey are agreed about the fact. Adopting technology is helpful to achieve customer analytics properly and identify potential consumers. In addition, it is helpful to detect new high-profit segments for fulfilling target of the organization. On the other hand, the process of predictive modeling can be achieved with the help of adopting technology. It obtains insight into the key performance indicators. Along with these, it is important to encourage experimentation leading discovery of the new scopes. It also helps to develop automated linkages that run insights into the action.
|Options||Frequency (%)||Total frequency||Total respondents|
Table 10: Technology in marketing channel of e-business
Figure 11: Technology for global presence
Findings and analysis
As per data presented in table, 27.69% respondents out of total number of respondents strongly agree with the matter. There are 26.15% respondents out of total number of respondents agree with the matter. However, 7.69% respondents remain neutral. On the other hand, approximately 23.07% respondents out of total number of respondents disagree with the role of technology for global presence, whereas 15.38% participants in the survey strongly disagree with the matter.
The capacity to control cost marking down in this way is needy upon the extent of the aggregate rooms controlled by the accomplices in any one market. The accomplishment of this model accordingly relies upon the measure of stock gave by the lodging gatherings. In the event that clients are dismissed by insufficient stock, it debilitates future signing into this site.
H0: Emerging technologies have impact on marketing channel of hospitality industry
H1: Emerging technologies have not any impact on the marketing channel of hospitality industry
|How far you agree that technology plays a crucial role in the marketing channel of e-business?|
|How far you agree that emerging technologies helpful in taking effective decisions?|
|How far you agree that marketing channel has an important role in hospitality industry|
The above tables along with the other tables presented in data analysis clearly indicate the emerging technology has an important role in hospitality industry. Maximum number of respondents in the survey has stated that adoption of emerging technology can be useful for gaining competitive advantages in the market. On the other hand, a few numbers of people are not agreed with the statement. Thus, alternative hypothesis has not been justified in the study, whereas null hypothesis is justified in the research.
From the above discussion, it can be summarized that emerging technology implication is helpful for the hospitality industry to bring effectiveness inside the organization. The rate of satisfaction as well as commitment can be improved through the use of technology in the particular industry. In addition, it is important to find out the challenges in international marketing channel that is achieved in the chapter of research.
Chapter 5: Conclusion and recommendation
From the above discussion, it summarizes that emerging technology has a significant role in marketing channel of hospitality industry. The promoting channels were not constrained to a couple of particular viewpoints of advancement or to the single phases of the channel, and which considered the channel all in all. The need of this vision originates from the way that in reality most of developments in advertising directs happen in research directed in this examination was gone for adding to a dream of advancement in association exercises, with impacts that must be surveyed with an extensive viewpoint.
In addition, producers, wholesalers, retailers or even clients have turned out to be progressively dangerous to be dissected as isolated classes. The part of retailers and their partners appears to have changed with regards to exercises like plan of items, cost setting, obtaining and fabricating. Private names, online commercial centers and the sorting out of products are three angles where the parts of makers, wholesalers, retailers and buyers are ending up more obscured.
Following are the strategies through which organizations belong to hospitality industry can enhance performance in the marketing channel and overcome the challenges.
5.3 Linking with objectives
Objective 1: To identify the issues faced for adopting emerging technologies in international marketing channels
The factors and challenge faced in marketing channel of hospitality industry is discussed. According to the challenges, solutions are provided as a form of recommendations. Hence, the objective is justified in the research. Literature review chapter includes the factors. On the other hand, in the question 4 and 6, the objective is met.
Objective 2: To analyze the role of emerging technologies in easing marketing channel in hospitality industry
In the literature review chapter, the effectiveness of the satisfaction rate as well as importance of commitment is described. In marketing channel of hospitality industry, satisfaction rate of customers is helpful for improving performance of the organization. Thus, selection of the objective is justified in the research.
Objective 3: To critically analyze rate of satisfaction and commitment in the marketing channels
In the present research work, the main objective of the research is to analyze the role of emerging technology in order to enhance performance of the organization. In the literature review chapter, topics related to the emerging technology and its impact on marketing channel is described. In addition, survey questionnaire no 6 meets with the objective. Thus, selection of the objective is justified in the research.
Objective 5: To recommend solutions to overcome the challenges in international business or international marketing channels
In the recommendation part, effective solutions are provided in order to overcome the challenges and minimize the factors in the marketing channel of hospitality industry. Thus, the objective is justified.
5.4 Limitation and future scopes
In order to gather data from wide range of populations, several problems are faced by the researcher that can describe as the form of limitations in research. Haphazard answers for closed ended questionnaire might disturb the proper flow of research and manipulate research in some extent. In addition, time give for conducting the study was very limited.
In order to analyze the impact of emerging technologies in marketing channel of hospitality industry, a wide range of data have been analyzed. Hence, future researchers may use this research as secondary source. In addition, the researcher might be helpful for managers of the organizations to identify the factors and improve their marketing channel through taking effective strategy.
Abou?Shouk, M., Lim, W.M. and Megicks, P., 2013. Internet adoption by travel agents: A case of Egypt. International Journal of Tourism Research, 15(3), pp.298-312.
Agag, G. and El-Masry, A.A., 2016. Understanding the determinants of hotel booking intentions and moderating role of habit. International Journal of Hospitality Management, 54, pp.52-67.
Agag, G.M. and El-Masry, A.A., 2017. Why do consumers trust online travel websites? Drivers and outcomes of consumer trust toward online travel websites. Journal of Travel Research, 56(3), pp.347-369.
Ahmad, S.Z., 2015. Entrepreneurship in the small and medium-sized hotel sector. Current Issues in Tourism, 18(4), pp.328-349.
Arcade, J., Godet, M., Meunier, R. and Roubelat, R., 2015. Structural analysis with the MICMAC methods Actors’ strategy with Mactor method, AC/UNU Millennium Project Futures Research Methodology.
Ashari, H.A., Heidari, M. and Parvaresh, S., 2014. Improving SMTEs’ business performance through strategic use of information communication technology: ICT and tourism challenges and opportunities. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(3), pp.1-20.
Assimakopoulos, C., Papaioannou, E., Sarmaniotis, C. and Georgiadis, C.K., 2015. Online reviews as a feedback mechanism for hotel CRM systems. Anatolia, 26(1), pp.5-20.
Atadil, H.A., Sirakaya-Turk, E. and Altintas, V., 2017. An analysis of destination image for emerging markets of Turkey. Journal of vacation marketing, 23(1), pp.37-54.
Baka, V., 2016. The becoming of user-generated reviews: Looking at the past to understand the future of managing reputation in the travel sector. Tourism Management, 53, pp.148-162.
Bauer, G.R., 2014. Incorporating intersectionality theory into population health research methodology: challenges and the potential to advance health equity. Social Science andMedicine, 110, pp.10-17.
Bauman, S., Cross, D. and Walker, J.L. eds., 2013. Principles of cyberbullying research: Definitions, measures, and methodology. Routledge.
Bell, J., McNaughton, R., andYoung, S. 2001. ‘Born-again global’ firms; An extension to the ‘born global’ phenomenon. Journal of International Management, 7(3): 173-189.
Benckendorff, P.J., Sheldon, P.J. and Fesenmaier, D.R., 2014. Tourism information technology. Cabi.
Berezan, O., Yoo, M. and Christodoulidou, N., 2016. The impact of communication channels on communication style and information quality for hotel loyalty programs. Journal of Hospitality and Tourism Technology, 7(1), pp.100-116.
Beritelli, P., Beritelli, P., Schegg, R. and Schegg, R., 2016. Maximizing online bookings through a multi-channel-strategy: Effects of interdependencies and networks. International Journal of Contemporary Hospitality Management, 28(1), pp.68-88.
Bharwani, S., Bharwani, S., Mathews, D. and Mathews, D., 2016. Customer service innovations in the Indian hospitality industry. Worldwide Hospitality and Tourism Themes, 8(4), pp.416-431.
Bilgihan, A. and Bujisic, M., 2015. The effect of website features in online relationship marketing: A case of online hotel booking. Electronic Commerce Research and Applications, 14(4), pp.222-232.
Bilgihan, A. and Wang, Y., 2016. Technology induced competitive advantage: a case of US lodging industry. Journal of Hospitality and Tourism Technology, 7(1), pp.37-59.
Bilgihan, A., Barreda, A., Okumus, F. and Nusair, K., 2016. Consumer perception of knowledge-sharing in travel-related Online Social Networks. Tourism Management, 52, pp.287-296.
Bilgihan, A., Kandampully, J. and Zhang, T., 2016. Towards a unified customer experience in online marketing environments: Antecedents and outcomes. International Journal of Quality and Service Sciences, 8(1), pp.102-119.
Bilgihan, A., Sukhu, A. and Kandampully, J., 2015. The Role of Website Features in Creating Loyalty: The Mediating Effect of Commitment. In Hospitality, Travel, and Tourism: Concepts, Methodologies, Tools, and Applications (pp. 780-794). IGI Global.
Bloodgood, J. M., Sapienza, H. J., andAlmeida, J. G. 1996. The internationalisation of new high-potential US ventures: antecedents and outcomes. Entrepreneurship Theory and Practice, 20(4): 61-76.
Bonn, M.A., Kim, W.G., Kang, S. and Cho, M., 2016. Purchasing wine online: The effects of social influence, perceived usefulness, perceived ease of use, and wine involvement. Journal of Hospitality Marketing andManagement, 25(7), pp.841-869.
Bonsón Ponte, E., Carvajal-Trujillo, E. and Escobar-Rodríguez, T., 2015. Corporate Facebook and stakeholder engagement. Kybernetes, 44(5), pp.771-787.
Bowie, D., Paraskevas, A. and Mariussen, A., 2014. Technology-driven online marketing performance measurement: lessons from affiliate marketing. International Journal of Online Marketing, 4(4), pp.1-16.
Brinkmann, S., 2014. Interview. In Encyclopedia of Critical Psychology (pp. 1008-1010). Springer New York.
Buhalis, D. and Inversini, A., 2014. Tourism Branding, Identity, Reputation Co-creation, and Word-of-Mouth in the Age of Social Media. Tourism management, marketing, and development, 1, pp.15-40.
Burns, L.D., Mullet, K.K. and Bryant, N.O., 2016. The business of fashion: Designing, manufacturing, and marketing. Bloomsbury Publishing USA.
Cabiddu, F., Lui, T.W. and Piccoli, G., 2013. Managing value co-creation in the tourism industry. Annals of Tourism Research, 42, pp.86-107.
Cantallops, A.S. and Salvi, F., 2014. New consumer behavior: A review of research on eWOM and hotels. International Journal of Hospitality Management, 36, pp.41-51.
Chen, C.H., Nguyen, B., Klaus, P.P. and Wu, M.S., 2015. Exploring electronic word-of-mouth (eWOM) in the consumer purchase decision-making process: the case of online holidays–evidence from United Kingdom (UK) consumers. Journal of Travel andTourism Marketing, 32(8), pp.953-970.
Chen, M.M., Murphy, H.C. and Knecht, S., 2016. An importance performance analysis of smartphone applications for hotel chains. Journal of Hospitality and Tourism Management, 29, pp.69-79.
Cioppi, M., Curina, I., Forlani, F. and Pencarelli, T., 2016. La visibilità on-line delle imprese alberghiere: un possibile modello di misurazione. Piccola Impresa/Small Business, (1).
Cobanoglu, C., Yang, W., Shatskikh, A. and Agarwal, A., 2015. Are consumers ready for mobile payment? an examination of consumer acceptance of mobile payment technology in restaurant industry. Hospitality Review, 31(4), p.6.
Cobos, L.M., Mejia, C., Ozturk, A.B. and Wang, Y., 2016. A technology adoption and implementation process in an independent hotel chain. International Journal of Hospitality Management, 57, pp.93-105.
Cook, R.A., Hsu, C.H. and Marqua, J.J., 2014. Tourism: the business of hospitality and travel. USA: Pearson.
Coviello, N. E., McDougall, P. P., andOviatt, B. M. 2011. The emergence, advance and future of international entrepreneurship research – An introduction to the special forum. Journal of Business Venturing, 26(6): 625-631.
Dadwal, S.S. and Hassan, A., 2015. The augmented reality marketing: A merger of marketing and technology in tourism. In Emerging innovative marketing strategies in the tourism industry (pp. 78-96). IGI Global.
Denizci Guillet, B., Kucukusta, D. and Liu, L., 2016. An examination of social media marketing in China: how do the top 133 hotel brands perform on the top four Chinese social media sites?. Journal of Travel andTourism Marketing, 33(6), pp.783-805.
Eid, R. and Abdelkader, A.A., 2017. Customer Orientation Implementation Constructs in the Banking Sector: A Theoretical Construct Development and its Empirical Validation. International Journal of Online Marketing (IJOM), 7(2), pp.1-22.
Evers, N., andO’Gorman, C. 2011. Improvised internationalization in new ventures: The role of prior knowledge and networks. Entrepreneurship andRegional Development, 23(7-8): 549-574.
Fernández-Cavia, J., Marchiori, E., Haven-Tang, C. and Cantoni, L., 2017. Online communication in Spanish destination marketing organizations: The view of practitioners. Journal of Vacation Marketing, 23(3), pp.264-273.
Freeman, S., Deligonul, S., andCavusgil, T. 2013. Strategic re-structuring by born-globals using outward and inward-oriented activity. International Marketing Review, 30(2): 156-182.
Gale, N.K., Heath, G., Cameron, E., Rashid, S. and Redwood, S., 2013. Using the framework method for the analysis of qualitative data in multi-disciplinary health research. BMC medical research methodology, 13(1), p.117.
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior. Journal of business research, 69(12), pp.5833-5841.
Gössling, S. and Lane, B., 2015. Rural tourism and the development of Internet-based accommodation booking platforms: a study in the advantages, dangers and implications of innovation. Journal of Sustainable Tourism, 23(8-9), pp.1386-1403.
Greenland, S.J., Combe, I.A. and Farrell, A.M., 2016. Stakeholder preference and stated vs derived importance satisfaction research. International Journal of Market Research, 58(1), pp.35-56.
Gulbahar, M.O. and Yildirim, F., 2015. Marketing efforts related to social media channels and mobile application usage in tourism: Case study in Istanbul. Procedia-Social and Behavioral Sciences, 195, pp.453-462.
Gustavo, N., 2013. Marketing management trends in tourism and hospitality industry: Facing the 21st century environment. International Journal of Marketing Studies, 5(3), p.13.
He, W., Zha, S. and Li, L., 2013. Social media competitive analysis and text mining: A case study in the pizza industry. International Journal of Information Management, 33(3), pp.464-472.
Hoppner, J.J. and Griffith, D.A., 2015. Looking back to move forward: a review of the evolution of research in international marketing channels. Journal of Retailing, 91(4), pp.610-626.
Hua, N., Morosan, C. and DeFranco, A., 2015. The other side of technology adoption: examining the relationships between e-commerce expenses and hotel performance. International Journal of Hospitality Management, 45, pp.109-120.
Huang, Y.C., Backman, K.F., Backman, S.J. and Chang, L.L., 2016. Exploring the implications of virtual reality technology in tourism marketing: An integrated research framework. International Journal of Tourism Research, 18(2), pp.116-128.
Humphries, B., 2017. Re-thinking social research: anti-discriminatory approaches in research methodology. Taylor andFrancis.
Jaggar, A.M., 2015. Just methods: An interdisciplinary feminist reader. Routledge.
Kasemsap, K., 2015. The role of electronic commerce in the global business environments. Handbook of research on interactive information quality in expanding social network communications, pp.304-324.
Kasemsap, K., 2015. The role of marketing strategies in the tourism industry. Emerging innovative marketing strategies in the tourism industry, pp.174-194.
Kasemsap, K., 2017. Mastering social media in the modern business world. In Social media listening and monitoring for business applications (pp. 18-44). IGI Global.
Kim, H.H. and Law, R., 2015. Smartphones in tourism and hospitality marketing: A literature review. Journal of Travel andTourism Marketing, 32(6), pp.692-711.
Kim, M.J., Chung, N., Lee, C.K. and Preis, M.W., 2015. Motivations and use context in mobile tourism marketing: Applying contingency and task–technology fit theories. International Journal of Tourism Research, 17(1), pp.13-24.
Kriemadis, A., Gatsis, G., Leivaditi, E., Manousaridou, G. and Papadopoulos, A., 2017, June. An Evaluation of Website Persuasiveness in Five Star Hotels in Greece. In 5 th International Conference on Contemporary Marketing Issues ICCMI June 21-23, 2017 Thessaloniki, Greece (p. 371).
Law, R., Leung, R., Lo, A., Leung, D. and Fong, L.H.N., 2015. Distribution channel in hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and travel agencies. International Journal of Contemporary Hospitality Management, 27(3), pp.431-452.
Leung, D., Lo, A., Fong, L.H.N. and Law, R., 2015. Applying the Technology-Organization-Environment framework to explore ICT initial and continued adoption: An exploratory study of an independent hotel in Hong Kong. Tourism Recreation Research, 40(3), pp.391-406.
Lin, J., Yan, Y. and Chen, S., 2017. UNDERSTANDING THE IMPACT OF SOCIAL COMMERCE WEBSITE TECHNICAL FEATURES ON REPURCHASE INTENTION: A CHINESE GUANXI PERSPECTIVE. Journal of Electronic Commerce Research, 18(3), p.225.
Lu, J., Mao, Z., Wang, M. and Hu, L., 2015. Goodbye maps, hello apps? Exploring the influential determinants of travel app adoption. Current Issues in Tourism, 18(11), pp.1059-1079.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Mistilis, N., Buhalis, D. and Gretzel, U., 2014. Future eDestination marketing: perspective of an Australian tourism stakeholder network. Journal of Travel Research, 53(6), pp.778-790.
Moreno-Munoz, A., Bellido-Outeirino, F.J., Siano, P. and Gomez-Nieto, M.A., 2016. Mobile social media for smart grids customer engagement: Emerging trends and challenges. Renewable and Sustainable Energy Reviews, 53, pp.1611-1616.
Murphy, H.C., Chen, M.M. and Cossutta, M., 2016. An investigation of multiple devices and information sources used in the hotel booking process. Tourism Management, 52, pp.44-51.
Nabil Almunawar, M., Susanto, H. and Anshari, M., 2013. A cultural transferability on IT business application: iReservation system. Journal of Hospitality and Tourism Technology, 4(2), pp.155-176.
Neuhofer, B., Buhalis, D. and Ladkin, A., 2014. A typology of technology?enhanced tourism experiences. International Journal of Tourism Research, 16(4), pp.340-350.
Neuhofer, B., Buhalis, D. and Ladkin, A., 2015. Smart technologies for personalized experiences: a case study in the hospitality domain. Electronic Markets, 25(3), pp.243-254.
Neuman, W.L. and Robson, K., 2014. Basics of social research. Pearson Canada.
Nwakanma, I.C., Ubani, E.C., Asiegbu, B.C. and Nwokonkwo, O.C., 2014. Factors affecting the adoption of ICT in the hospitality industry in Imo State. International Journal of Computer Science Issues (IJCSI), 11(4), p.170.
Okazaki, S., Campo, S., Andreu, L. and Romero, J., 2015. A latent class analysis of Spanish travelers’ mobile internet usage in travel planning and execution. Cornell Hospitality Quarterly, 56(2), pp.191-201.
Osarenkhoe, A., Byarugaba, J.M., Birungi, M.K., Okoe, A.F. and Bennani, A.E., 2014. Technology-Based Service Encounter—A Study of the Use of E-Mail as a Booking Tool in Hotels. Journal of Service Science and Management, 7(06), p.419.
Öz, M., 2015. Social media utilization of tourists for travel-related purposes. International Journal of Contemporary Hospitality Management, 27(5), pp.1003-1023.
Ozturk, A.B., Bilgihan, A., Nusair, K. and Okumus, F., 2016. What keeps the mobile hotel booking users loyal? Investigating the roles of self-efficacy, compatibility, perceived ease of use, and perceived convenience. International Journal of Information Management, 36(6), pp.1350-1359.
Ozturk, A.B., Nusair, K., Okumus, F. and Hua, N., 2016. The role of utilitarian and hedonic values on users’ continued usage intention in a mobile hotel booking environment. International Journal of Hospitality Management, 57, pp.106-115.
Pappas, N., 2015. Internet use and destination preferences: evidence from Crete and Cyprus. In Strategic Infrastructure Development for Economic Growth and Social Change (pp. 218-236). IGI Global.
Pérez, L. and Cambra-Fierro, J., 2015. Learning to work in asymmetric relationships: insights from the computer software industry. Supply Chain Management: An International Journal, 20(1), pp.1-10.
Perez, L., Whitelock, J. and Florin, J., 2013. Learning about customers: Managing B2B alliances between small technology startups and industry leaders. European Journal of Marketing, 47(3/4), pp.431-462.
Reynolds, D., Creemers, B., Nesselrodt, P.S., Shaffer, E.C., Stringfield, S. and Teddlie, C. eds., 2014. Advances in school effectiveness research and practice. Elsevier.
Riedl, R., Davis, F.D. and Hevner, A.R., 2014. Towards a NeuroIS research methodology: intensifying the discussion on methods, tools, and measurement. Journal of the Association for Information Systems, 15(10), p.I.
Roberts, T., 2013. Understanding the research methodology of interpretative phenomenological analysis. British Journal of Midwifery, 21(3).
Robinson, P., Fallon, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the travel industry. CABI.
Sahli, A.B. and Legohérel, P., 2016. The tourism Web acceptance model: A study of intention to book tourism products online. Journal of Vacation Marketing, 22(2), pp.179-194.
Salaberry, M.R. and Comajoan, L. eds., 2013. Research design and methodology in studies on L2 tense and aspect (Vol. 2). Walter de Gruyter.
Saleh, S.A., Hussain, F., Saud, M.B.B. and Isa, M.A.M., 2015, April. Strategic Marketing andCompetitive Analysis of Malaysian Medical Tourism Industry. In Proceeding of Kuala Lumpur International Business, Economics, and Law Conference (Vol. 6, pp. 18-19).
Sanliöz Özgen, H.K. and Kozak, M., 2015. Social media practices applied by city hotels: a comparative case study from Turkey. Worldwide Hospitality and Tourism Themes, 7(3), pp.229-241.
Scaglione, M. and Schegg, R., 2015. The impact of attribute preferences on adoption timing of hotel distribution channels: are OTAs winning the customer race?. In Information and Communication Technologies in Tourism 2015 (pp. 681-693). Springer, Cham.
Shaltoni, A.M., 2017. From websites to social media: exploring the adoption of internet marketing in emerging industrial markets. Journal of Business andIndustrial Marketing, (just-accepted), pp.00-00.
Sun, P., Cárdenas, D.A. and Harrill, R., 2016. Chinese Customers’ Evaluation of Travel Website Quality: A Decision-Tree Analysis. Journal of Hospitality Marketing andManagement, 25(4), pp.476-497.
Surugiu, M.R. and Surugiu, C., 2015. Heritage tourism entrepreneurship and social media: opportunities and challenges. Procedia-Social and Behavioral Sciences, 188, pp.74-81.
Tarone, E.E., Gass, S.M. and Cohen, A.D. eds., 2013. Research methodology in second-language acquisition. Routledge.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley andSons.
Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in travel, tourism and hospitality. Cornell Hospitality Quarterly, 54(3), pp.240-247.
Tuohy, D., Cooney, A., Dowling, M., Murphy, K. and Sixsmith, J., 2013. An overview of interpretive phenomenology as a research methodology. Nurse Researcher, 20(6), pp.17-20.
Ukpabi, D.C. and Karjaluoto, H., 2017. Consumers’ acceptance of information and communications technology in tourism: A review. Telematics and Informatics, 34(5), pp.618-644.
Verhoef, P.C. and Lemon, K.N., 2013. Successful customer value management: Key lessons and emerging trends. European Management Journal, 31(1), pp.1-15.
Wang, H.Y. and Wu, S.Y., 2014. Factors influencing behavioural intention to patronise restaurants using iPad as a menu card. Behaviour andInformation Technology, 33(4), pp.395-409.
Webb, T., 2016. From travel agents to OTAs: How the evolution of consumer booking behavior has affected revenue management. Journal of Revenue and Pricing Management, 15(3-4), pp.276-282.
Wiek, A. and Lang, D.J., 2016. Transformational sustainability research methodology. In Sustainability Science (pp. 31-41). Springer Netherlands.
Xiang, Z., Wang, D., O’Leary, J.T. and Fesenmaier, D.R., 2015. Adapting to the internet: trends in travelers’ use of the web for trip planning. Journal of Travel Research, 54(4), pp.511-527.
Yap, C.S., Cheng, B.L. and Choe, K.L., 2014. Web 2.0 as a tool for market intelligence acquisition in the Malaysian hotel industry. Information Research, 19(4).
Yiu, M. and Law, R., 2016. Technological impacts on knowledge sharing: A case study of three travel agencies in Hong Kong. Tourism Recreation Research, 41(1), pp.2-15.
Yoo, K.H. and Lee, W., 2015. Use of Facebook in the US heritage accommodations sector: an exploratory study. Journal of Heritage Tourism, 10(2), pp.191-201.
Zaidan, E., 2017. Analysis of ICT usage patterns, benefits and barriers in tourism SMEs in the Middle Eastern countries: The case of Dubai in UAE. Journal of Vacation Marketing, 23(3), pp.248-263.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review. Tourism Management Perspectives, 10, pp.27-36.
Zhu, G., So, K.K.F. and Hudson, S., 2017. Inside the sharing economy: understanding consumer motivations behind the adoption of mobile applications. International Journal of Contemporary Hospitality Management, (just-accepted), pp.00-00.
Zopounidis, C., Lemonakis, C., Andreopoulou, Z. and Koliouska, C., 2014. Agrotourism industry development through internet technologies: a multicriteria approach. Journal of Euromarketing, 23(4), pp.45-67.
PEST analysis is considered as a strategic planning method in order to minimize business threats. By analyzing political, economical, technological, environmental, social and legal factors through which a business can obtain valuable benefits (Zalengera et al. 2014). It also assists with idea phase as well as development of products, launching as well as strategies for content marketing. The advantages and limitations of PEST analysis can be explained as followed.
Porter’s five forces
Formulation of competitive strategy requires analysis of business of the organization within the particular environment. Yunna and Yisheng (2014) stated that Porter’s five forces model is based on analysis of external environment of the company and focus on surroundings of the company.
Theory of Distribution Channels
When a consumer considers buying a product, value by looking several factors like delivery, availability is accessed (Sa Vinhas and Heide 2014). On the other hand, marketing channel helps to look at the factors. The benefits of theory of distribution channel can be explained as followed.
Disadvantages of theory of marketing channel are as followed.
Cross-Channel Marketing Model
The model engages implementation of marketing campaign in several channels (Verhoef et al. 2015). The cross channel marketing model has a number of advantages and disadvantages.
Sa Vinhas, A. and Heide, J.B., 2014. Forms of competition and outcomes in dual distribution channels: The distributor’s perspective. Marketing Science, 34(1), pp.160-175.
Verhoef, P.C., Kannan, P.K. and Inman, J.J., 2015. From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing. Journal of retailing, 91(2), pp.174-181.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy Reviews, 40, pp.798-805.
Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.