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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.
214 LOVELY PROFESSIONAL UNIVERSITY