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distribution channel

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Issue:

Miscellaneous

 

Written by:

Marsha K

 

Date added:

August 16, 2015

 

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Grade:

B

 

No of pages / words:

26 / 7092

 

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8597 times

 

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In doing so, the airlines have increased productivity and reduced expenses. Capturing costs associated with the distribution of an airline ticket is inherently subjective, requiring the analyst to decide what expenses (e.g., sales force, distribution planning staff, reservations agents, call center communications and rent, city ticket offices, mailing, printing, advertising, agency commissions, global distribution system [GDS] booking fees, hardware/software) should be included in that category...
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That is, distribution costs are functional rather than organizational, entailing a blend of organizational costs (i.e., labor, commissions, purchased services, communications, advertising, and promotion). An evaluation of a distribution channel that considered only costs would be flawed, of course. Improved channel profitability is the appropriate objective, requiring a thorough analysis of channel shift, revenue production, and dilution, as well as the full array of direct and indirect costs...
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General issues of this essay:
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