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Services Marketing                                               Gopika Juneja, Lovely Professional University




                    Notes                           Unit 12: Distribution of Services



                                     CONTENTS

                                     Objectives
                                     Introduction
                                     12.1 Delivering Services through Intermediaries

                                          12.1.1  Why should Service Firms use Intermediaries?
                                          12.1.2  Role of  Intermediaries

                                          12.1.3  Designing Effective Distribution  Channel
                                          12.1.4  Types of Intermediaries
                                          12.1.5  Factors Affecting Choice of Channels

                                          12.1.6  Managing Channel Conflicts
                                     12.2 Growth Options and Internationalisation of Distribution
                                     12.3 Summary

                                     12.4 Keywords
                                     12.5 Review Questions
                                     12.6 Further Readings




                                   Objectives

                                   After studying this unit, you will be able to:
                                       State the need of intermediaries and role of intermediaries
                                   
                                       Discuss how distribution channels are designed
                                   
                                       Identify the prerequisites of choosing intermediaries
                                   
                                       Describe the growth options and internationalisation of distribution
                                   
                                   Introduction

                                   A distribution channel consists of a set of people or firms who are intrinsically involved in the
                                   transfer of goods or services from the producer to the end user. The end user could either be an
                                   individual consumer or an industrial consumer. A channel of distribution includes the producer
                                   of the goods and services, the consumer of the same and a series of intermediaries like wholesalers,
                                   dealers, retailers, agents, etc.
                                   Place in case of services determine where is the service product going to be located. The best
                                   place to open up a petrol pump is on the highway or in the city. A place where there is minimum
                                   traffic is a wrong location to start a petrol pump. Similarly, a software company will be better
                                   placed in a business hub with a lot of companies nearby rather than being placed in a town or
                                   rural area.




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