New products contribute substantially to profitable sales (Drejer, 2002). The necessity of adding new products that will yield profits to sustain corporate growth is clear. Products also level out seasonal impacts, spread risks, use talents, capitalize on tax advantages, and replace obsolescent items.
Sales and marketing work together in order to ensure effective service delivery and customer satisfaction processes. In lodging industry, business success depends on producing the right product at the right time. New-product development is risky, for market opportunity is couched in uncertainty and instability, and competitive system and the unpredictability of customer reaction increases the risk. in spite of benefits and opportunities proposed by this model, recent years there is a growing number of research studies proving its limitations and weaknesses for modern business. Applied to consumer behavior, it is possible to say that sales managers give a special attention to importance of channels of distribution and marketing mix. Distribution channels are the vehicles for matching companies with customers. They establish the arrangements and paths for the flow of product and title to ultimate users. They move products and information to markets and provide the funnel for the feedback of information to the producer. As networks of marketing agencies, they constitute a system-a loose but formal coalition of independent entities linked together to distribute products and services.. As the links between companies and markets, they can impede or foster the effectiveness of the rest of the marketing mix. Distribution channels cover a wide range of situations. At one end are found the complicated linkage of manufacturers and their branches, agents and brokers, other wholesalers, and retailers for the movement of certain consumer goods. At the other is the direct distribution of heavy machinery. Between lie a variety of channel assortments (Mintzberg et al 2004). Which one works best depends on the company and its products and markets at a certain time. Distribution channels are essential components of economic system. The efficient movement of goods and competition both depend on sales management. Nevertheless, as economists often assume, the channels do not perform cost-less activities. Using resources to sort supply and match it with demand, they try to bring both activities into balance. Through channels, companies organize supply and markets and endeavor to develop their own best opportunities (Drejer, 2002).
In lodging and hotel industry, market segmentation is one of the main concepts used by marketing companies to divide the market between particular target groups and meet needs and wants of target customers. Divergent service policies adjust product lines to individual market segments -- they implement market segmentation. By assuming that demand is heterogeneous, market positioning strategy obtains a better match with distinguishable market segments. Service differentiation gives marketers a share of a broad, horizontal market, whereas market segmentation tends to result in cultivation of a market position in depth. Given