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Place in Services
Chapter - 13
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
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
Types of Intermediaries
Electronic channels
Chapter - 13
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
Chapter - 13
Franchising
Franchisees view:-
Advantages
Established business processes Reduced risk
Disadvantages
Reduced profits and revenues Strict adherence Encroachment Termination of the contracts High Expectations
Chapter - 13
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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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
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13
Thank you
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