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“PLACE” OR“DISTRIBUTION

CHANNELS”OF

SERVICE MARKETING

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IDENTIFY THE PRIMARYDISTRIBUTION CHANNELS

THROUGH WHICH SERVICES AREDELIVERED TO END CUSTOMERS.

 OBJECTIVEO

BJECTIVE

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WHAT IS A DISTRIBUTION

CHANNEL?

THE MEANS USED BY THE BUSINESS TO

REACH THEIR CUSTOMERS SO THAT THEGOODS OR SERVICE IS EASILY AVAILABLE

 AND ACCESSIBLE.

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CHANNEL STRUCTURES

DIRECT CHANNEL–

DISTRIBUTION CHANNEL FROM PRODUCER

TO CONSUMER WITH NO INTERMEDIARIES.

INDIRECT CHANNEL–

DISTRIBUTION CHANNELS FROM PRODUCER

TO CONSUMER USING AGENTS OR

INTERMEDIARIES TO ASSIST IN THE DELIVERY

OF THE SERVICE.

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DIRECT CHANNEL OR

DIRECT DELIVERY OF SERVICE

(UNLIKE GOODS) SERVICES ARE INTANGIBLE AND

DOES NOT TYPICALLY INVOLVE MOVING ITEMS

 THROUGH A CHAIN OF DISTRIBUTION CHANNELS.

IN CONTRAST TO CHANNEL OF GOODS, MOST OF

 THE SERVICES ARE DELIVERED DIRECTLY FROM

 THE SERVICE PRODUCER TO THE CONSUMER.

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REASONS AND EXAMPLES OF

HAVING A DIRECT CHANNELSERVICES AREINTANGIBLE, PERISHABLE

 AND CANNOT BE OWNED, THEREFORE

THEY CANNOT BE PRODUCED USING

 MACHINES, WAREHOUSED AND THEN

 REATAILED (AS GOODS CAN BE).

EXAMPLES – SOUTHWEST AIRLINES, MAYO

 CLINIC, IBM GLOBAL SERVICES.

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INDIRECT CHANNEL-

SERVICE THROUGH INTERMEDIARIES  MANY OF THE FUNCTIONS THATINTERMEDIARIES PROVIDE FOR GOODS

MANUFACTURERS ARE NOT RELEVANT FOR

SERVICE FIRMS , BUT…….

  INTERMEDIARIES OFTEN DELIVER

SERVICE AND PERFORM SEVERAL

IMPORTANT FUNCTIONS FOR SERVICE

PROVIDERS.

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FUNCTION OF INTERMEDIARIES???

 CO-PRODUCE THE SERVICE (FRANCHISE SERVICE)

SERVICE INTERMEDIARIES MAKE SERVICES LOCALLY 

  AVAILAIBLE. (TRAVEL AND INSURANCE AGENTS ,  LIKE-SOTC)

FUNCTION AS THE GLUE BETWEEN THE COMPANY 

  NAME AND CUSTOMER BY BUILDING TRUST.  ( A PARTICULAR TRAVEL AGENT FAVOURING

 AIR-INDIA)

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 TYPES OF INTERMEDIARIES USED

IN SERVICE DELIVERY

 AGENTS AND BROKERS

FRANCHISEES

ELECTRONIC CHANNELS

DIRECT OR COMPANY OWNED CHANNELS.

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AGENTS AND BROKERS

THEY ARE THE REPRESENTATIVES WHO DISTRIBUTE AND

SELL THE SERVICES OF ONE OR MORE SERVICE SUPPLIERS.

  EXAMPLE – TRAVEL SERVICES

 FINANCIAL SERVICES

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FRANCHISEES

FRANCHISEES ARE SERVICE OUTLETSLICENSED

BY A PRINCIPAL TO DELIVER AUNIQUE SERVICE

CONCEPT IT HAS CREATED ORPOPULARIZED.

EXAMPLES INCLUDE FAST FOOD CHAINSLIKE

 MC DONALD AND BURGER KING.

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ELECTRONIC CHANNELS

ELECTRONIC CHANNELS INCLUDE ALL

FORMS OF SERVICE PROVISION

THROUGH TELEVISION , TELEPHONE ,

INTERACTIVE MULTIMEDIA AND

COMPTERS.

  (EXAMPLE- DISTANCE LEARNING)

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DIRECT OR COMPANY OWNED

CHANNELS

A PARTICULAR SERVICE PROVIDER CANHAVE A MULTIPLE OUTLETS WHICH AREBEING OWNED AS WELL AS CONTROLLED

BY HIM.

EXAMPLE- STARBUCK (US BASED

COFFEE SHOP) HAS !!! COFFEESHOPS WHICH ARE COMPLETELY RUNAND MANAGED BY THE COMPANY.

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KEY PROBLEMS WITH

INTERMEDIARIES

1) CONFLICT BETWEEN SERVICE PROVIDER AND

INTERMEDIARY OVER OB"ECTIVES AND

PERFORMANCE.

#) DIFFICULTY CONTROLLING $UALITY ANDCONSISTENCY ACROSS OUTLETS.

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KEY PROBLEMS..CONTD

TENSION BETWEEN EMPOWERMENT AND

CONROL.

CHANNEL AMBIGUITY – PROBLEMS LIKE

WHO WILL DO THE MARKET

REASEARCH %%%

  WHO OWNS THE RESULT %%%WHO SHOULD DETERMINE THE

STANDARDS %%%

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STRATEGIES FOR EFFECTIVE

SERVICE DELIVERY THROUGH

INTERMEDIARIES&) CONTROL STRATEGIES- SERVICE

PRINCIPAL BELIEVES THAT

INTERMEDIARIES WOULD PERFORM

WELL, WHEN IT CREATES RULES AND

REGULATIONS AND SET STANDARDS.

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STRATEGIES

EMPOWERMENT STRATEGIES –

GREATER FLEXIBILITY TO

INTERMEDIARIES.

PARTNERING STRATEGIES –

PARTNERING WITH INTERMEDIARIES TO

LEARN TOGETHER ABOUT THE

CUSTOMER.

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