distribution of services

14
14-1 DELIVERING SERVICES THROUGH INTERMEDIARIES AND ELECTRONIC CHANNELS [email protected]

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Page 1: Distribution of Services

14-1

DELIVERING SERVICES THROUGH INTERMEDIARIES AND ELECTRONIC CHANNELS

[email protected]

Page 2: Distribution of Services

14-2Service Distribution through intermediariesCoproduce services using a process

developed by service principal (franchisee: haircutting, key making, dry-cleaning).

Make services locally available (Time & space convenience).

Build trusting relationships.

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Service Provider Participants

service principal (originator) creates the service concept

(like a manufacturer)

service deliverer (intermediary) entity that interacts with the customer in the

execution of the service (like a distributor/wholesaler)

Page 4: Distribution of Services

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Services Intermediaries Franchisees

service outlets licensed by a principal to deliver a unique service concept it has created e.g., Javed Habib’s, Blockbuster, McDonald’s, KFC

Agents and Brokers representatives who distribute and sell the services of

one or more service suppliers e.g., travel agents, independent insurance agents

Electronic Channels all forms of service provision through electronic means like TV,

telephone, interactive multimedia and computers. e.g., ATMs, university video courses, TaxCut software

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Direct or Co. – owned channels

Many services are distributed directly from provider to consumer.

Local doctors, CA, hairstylists, drycleaners, Starbucks in USA

Page 6: Distribution of Services

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Analysis – Direct channels

Benefits: Complete control Consistency in

delivery and execution.

Control over hiring, firing and motivating employees.

Co. owns customer relationships.

Disadvantages: Co. alone bears

the financial risk Lack of knowledge

in local markets

Page 7: Distribution of Services

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Franchising

Most commonFor services that can be standardized and

duplicated through delivery process, policies, branding, etc.

It’s a relationship where service provider (franchiser) develops and optimizes a service format that it licenses for delivery by other parties (franchisees)

Page 8: Distribution of Services

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Benefits and Challenges forFranchisers of Service

Page 9: Distribution of Services

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Benefits and Challenges forFranchisees of Service

Page 10: Distribution of Services

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Benefits and Challenges in Distributing Services through Agents and Brokers

Page 11: Distribution of Services

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Benefits and Challenges in Electronic Distribution of Services

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Common Issues Involving Intermediaries

conflict over objectives and performance

difficulty controlling quality and consistency across outlets

tension between empowerment and control

channel ambiguity

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Strategies for Effective Service Delivery Through Intermediaries Control Strategies:

Measurement Review

Partnering Strategies: Alignment of goals Consultation and

cooperation

Empowerment Strategies: Help the intermediary

develop customer-oriented service processes

Provide needed support systems

Develop intermediaries to deliver service quality

Change to a cooperative management structure

Page 14: Distribution of Services

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H&R Block: Providing Multiple Service Channel Options