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Chapter Nine. Distribution. Distribution. Availability Access Operating hours Direct channels Indirect channels. Components of the Service Process. Information Reservation Payment Consumption. Channel Options. Exclusive distribution Selective distribution Intensive distribution.

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Chapter Nine

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Chapter nine

Chapter Nine

Distribution


Distribution

Distribution

  • Availability

  • Access

  • Operating hours

  • Direct channels

  • Indirect channels


Components of the service process

Components of the Service Process

  • Information

  • Reservation

  • Payment

  • Consumption


Channel options

Channel Options

  • Exclusive distribution

  • Selective distribution

  • Intensive distribution


Distribution growth strategies

Distribution Growth Strategies

  • Multi-site

  • Multi-service

  • Multi-segment

  • Multi-site, multi-service

  • Multi-site, multi-segment

  • Multi-service, multi-segment

  • Multi-site, multi-service, multi-segment


Operational position and distribution strategies

Operational Position and Distribution Strategies

Operational Position --- Growth Strategy

Cost efficiency Multi-site

Technical Service Quality Multi-segment

Functional Service Quality Multi-service

Customization Multi-service


International expansion

International Expansion

  • Direct exporting

  • Joint ventures

  • Direct foreign investment

  • Agents

  • Franchises

  • License agreements


Franchising

Franchising

Advantages Disadvantages

Franchiser

  • Capitol for growth

  • Faster growth

  • Additional management

  • Additional income

  • Lower potential profits

  • Controlling service quality

  • Controlling firm image

Franchisee

  • Lower risk

  • Established brand name

  • Successful business plan

  • Expert assistance

  • Franchisee fees

  • Lack of freedom

  • Controlled by franchiser


Branding

Branding

  • Love Mobile Pet Grooming

  • Affordable Funeral Services

  • McDonald’s

  • Glamour Shots

  • Lawn Doctor

  • Kwik Kopy

  • Four Seasons Hotel

  • Marriott


Distribution management

Centralized

Decentralized

Service-specific

Site-specific

Firm-specific

Distribution Management

Organizational

Structure

Economies-of-Scale


Customer focused distribution

Customer-Focused Distribution

  • Identify market segments

  • Identify benefits sought by customers

  • Match customer needs to channel and distribution strategies

  • Manage quality control

  • Manage corporate growth


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