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    Module 3 Session 5 - Service Delivery System

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    tejalsshinde
    Distribution to most people means movement of goods for sale to end consumers. In Services context, we often have nothing to move, as we deal in,,experiences" supplementary services are informational in nature and can be distributed widely and cost effectively.

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    Module 3 Session 5 - Service Delivery System

    Uploaded by

    tejalsshinde
    64 views15 pages
    Distribution to most people means movement of goods for sale to end consumers. In Services context, we often have nothing to move, as we deal in,,experiences" supplementary services are informational in nature and can be distributed widely and cost effectively.

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    4. Module 3 Session 5 - Service Delivery System

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    Distribution to most people means movement of goods for sale to end consumers. In Services context, we often have nothing to move, as we deal in,,experiences" supplementary services are informational in nature and can be distributed widely and cost effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    64 views15 pages

    Module 3 Session 5 - Service Delivery System

    Uploaded by

    tejalsshinde
    Distribution to most people means movement of goods for sale to end consumers. In Services context, we often have nothing to move, as we deal in,,experiences" supplementary services are informational in nature and can be distributed widely and cost effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Session 7

    Distributing Services

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 1

    Distribution in a Services Context

    Distribution to most people means movement of goods for


    sale to end consumers.

    In Services context, we often have nothing to move , as we


    deal in experiences
    How then does Distribution work in Services context ?

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 2

    Applying the Flow Model of Distribution to Services


    Distribution embraces three interrelated elements

    Information and promotion flow


    The objective : get the customer interested in the service.

    Negotiation flow

    Agreement on the service features & terms of offer, to close the purchase contract.

    The objective : to sell the right to use a service. E.g.. Sell a reservation or a ticket.

    Product flow
    People or possession processing services require physical facilities for delivery Information processing services (internet banking, distance edu. through net etc) can be

    undertaken via electronic channels.

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 3

    Distinguishing between Distribution of Supplementary and Core Services

    Distribution can relate to the core service as well as the


    supplementary services.

    Since many core services require a physical location

    Club Mahindra Holiday, a movie at Imax or a play at Prithvi Theatre

    Supplementary services are informational in nature and can


    be distributed widely and cost effectively by other means.

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 4

    Information and Physical Processes of the Augmented Service Product


    Information Processes
    Payment

    Information Consultation
    OrderTaking

    Billing Exceptions

    Core

    Hospitality Safekeeping

    Flower of Service
    Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

    Physical Processes
    7- 5

    Using Websites for Service Delivery


    Information
    Read brochure/FAQ; get schedules/ directions; check prices

    Payment
    Pay by bank card Direct debit

    Consultation
    Conduct e-mail dialog Use expert systems

    Billing
    Receive bill Make auction bid Check account status Core

    Order-Taking
    Make/confirm reservations Submit applications Order goods, check status

    Exceptions
    Make special requests Resolve problems

    Hospitality
    Record preferences

    Safekeeping
    Track package movements Check repair status

    CORE: Use Web to deliver information-based core services


    Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

    7- 6

    Options for Service Delivery


    There are 3 types of interactions between customers and service firms

    Customer goes to the service provider (or intermediary)

    Service provider goes to the customer


    Interaction at arms length (via the Internet, telephone, fax,
    mail, etc.)
    Online tech solutions, banking, repairs

    Clinics, supermarkets, Salons

    Landscapist, Vet, caterer

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 7

    Method of Service Delivery


    Availability of Service Outlets Nature of Interaction Single Site Multiple Sites between Customer and Service Organization
    Customer goes to service organization

    Service organization goes to customer


    Customer and service organization transact at arms length

    Theater Barbershop House painting Mobile car wash Credit card company Local TV station

    Bus service Fast-food chain Mail delivery Auto club road service Broadcast network Telephone company

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7- 8

    Technology Revolutionizes Service Delivery:

    Some examples -

    Smart mobile telephones to link users to Internet Voice recognition software Automated kiosks for self-service (e.g. bank ATMs) Web sites
    provide information take orders and accept payment deliver information-based services

    Smart cards that can act as electronic wallets


    Slide 2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E

    7- 9

    Decisions about Place and time

    Where should be delivered in a brick and Mortar Context ? Locational


    constraints
    Noise and environmental factors airports Geographic factors Ski and holiday resorts Economies of scale Specialized hospitals, malls

    Ministores (ATMs, Retail outlets at petrol pumps,Subway etc) From Airports to Air Malls

    When should services be delivered ?


    In the past there was limited service availability, today the standard

    has become 24/7 service

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 10

    24/7 - Factors Encouraging Extended Operating Hours

    Economic pressure from consumers Changes in legislation

    Economic incentives to improve asset utilization


    Availability of employees to work nights, weekends Automated self-service

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 11

    Place vs. Cyberspace


    Place - customers and
    Required for people processing services suppliers meet in a physical Offers live experiences, social environment interaction, e.g., food services More emphasis on eye-catching servicescape, entertainment

    Cyberspace - customers

    and suppliers do business electronically in virtual environment created by phone/internet linkages

    Ideal for info-based services Saves time Facilitates information gathering May use express logistics service to deliver physical core products

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 12

    Service Delivery in Cyberspace Factors that Attract Customers to Virtual Stores

    Convenience (24-hour availability, save time, effort)


    Ease of obtaining information on-line and searching for
    desired items

    Better prices than in bricks-and-mortar stores


    Broad selection
    Amazon.com

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 13

    The role of Intermediaries


    Splitting Responsibilities for Delivering Supplementary Services Many service firms find it cost effective to delegate certain tasks, usually supplementary service elements.

    As created by originating firm

    As enhanced by distributor

    As experienced by customer

    Core

    Core

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 14

    Franchising
    Franchising has become a popular way to expand delivery of all 7Ps to multiple sites, without the level of investment capital that would be needed for self owned sites. It is a fast growth strategy, when

    Resources are limited Long-term commitment of store managers is crucial Local knowledge is important Fast growth is necessary to pre-empt competition

    Slide 2004 by Christopher Lovelock and Jochen Wirtz

    Services Marketing 5/E

    7 - 15

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