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Chapter - 13

Place in Services

Chapter - 13

Objectives of the Session


To understand
Significance of Locations Channel Decisions Direct Distributions Key Intermediaries in Service Delivery Strategies for Effective Service Delivery Through Intermediaries

Chapter - 13

Significance of Locations
Customer visits the service providers
Service provider visits the customer Distant interaction

Chapter - 13

Channel Decisions
Franchisee Service provider

Customer

Electronic channels
Sellers & buyers agents

Agent and brokers


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Factors that a service provider needs to take into consideration while making channel decisions
Easy accessibility and convenience to customers Value addition to customers

Chosen channel should not eat into the margins of service provider (service providers budget)
Cover all the target market Reliability
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Direct Distributions
Advantages Control Healthy customer relations Flexibility and confidentiality Disadvantages Financial risks Lack of knowledge

Chapter - 13

Key Intermediaries in Service Delivery


Franchising
Service Offerings by Companies Target Customers

Types of Intermediaries
Electronic channels
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Agents and Brokers


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Franchising
Franchisers view:-

Advantages
Business expansion Improved revenues Reduced risks Consistency Local presence through global franchising Increased working capital and minimized financial risks

Disadvantages
Trouble in motivating franchisee Conflict between the two Quality Maintenance Relationships with customers

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Franchising
Franchisees view:-

Advantages
Established business processes Reduced risk

Disadvantages
Reduced profits and revenues Strict adherence Encroachment Termination of the contracts High Expectations

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Agents and Brokers


Advantages
Reduced cost Special skills and knowledge Large representations Knowledge of local markets Choice of customers

Disadvantages
Reduced control on pricing and other marketing areas Promotion of various service providers-offers

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Electronic Channels
Advantages
Lower cost Increased customer convenience Increased bargaining power of the customers Extensive distribution Ability to customize services and gain quick feedback

Disadvantages
Uncontrolled price competition Customer variability Security challenge

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Strategies for Effective Service Delivery Through Intermediaries


Control strategies
Measurement Review

Empowerment strategies
Enabling intermediaries to develop customer-oriented service process Motivating intermediaries to deliver consistent quality service Adopting cooperative management structure

Partnering strategies
Alignment of goals Participation and cooperation

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Summary
Significance of Locations Channel Decisions Direct Distributions Key Intermediaries in Service Delivery Strategies for Effective Service Delivery Through Intermediaries

Chapter - 13

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Thank you
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