Distribution/Place

in services

The strategies involved in making

the services available and
accessible to the consumer will be
based on two major issues:
Where should the service be made
available choice of location?
Who should deliver the service-the
choice of channel?

Location of service premisesWho are the target customers?

What is the degree of interaction required
between the provider and customer in the
delivery?
To what extent convenience of accessibility
will affect consumer decision making
regarding use of the service?
Is the service technology based or people
based?
How do competitors operate their service?
Can new systems or technology be used to
improve the existing location decisions?

All these questions are linked to

the following factorsNature of Service
Nature of Interaction
Nature of Customers demand
Competitive Positioning
Natural Geographical Location
Technological Advancements
Dependency on the other service
Infrastructural Facilities
Target Market decisions

Look of Premise-It includes

Nature of Service Organization
Future Needs
Aesthetic Factor
Social environment

Service Provider

Agent-Buyer/Seller

Customer

FRANCHISEE

Designing a distribution
systemCustomer Segmentation
Service Characteristics
have an influence on
Channel Design
Identifying &Evaluation
Major Channel AlternativesAgent , Broker, Franchising

Role of Customer in the

Distribution system-Low level
Participation-Airline service,
entertainment Concert.
Medium level Participation- Haircut,
Full service restaurants.
High level participation-Personal
training, Weight loss program me
(Customer is Co-producer and
contributes to service quality,value
and satisfaction)