The document discusses guidelines for designing service distribution channels. It suggests seeking physical manifestations of services and developing alternative contacts or logistics channels where none previously existed. Specific distribution alternatives are provided for services like airline tickets, education, library services, banking, repairs, and clothing collection. The goal is to design distribution approaches that meet customer needs and the nature of the specific service.
2. Wholesalers
Duties?
- Take ownership of goods where agents do not
- Storage
- Reduce physical contact cost between producer and consumer i.e.
customer service costs
- Could take on marketing responsibilities
3. Retailers
NB role in distribution of products
- Strong personal relationship with customer
- Hold several brands and products
- Offer credit to consumers
- P&S promoted & merchandised
- Sets final price … well, not always
- Brand name
4. Agents
Secure order for producer and takes
commission.
No title of goods.
“Stockist agent” could hold consignment
stock.
Difficult to keep control due to
distances.
8. International distribution channel
Overseas
franchisor Local
(Coke USA) manufacturer
(Amalgamated
Bottling
Industries) Local
wholesaler
(Makro)
Local retailer
(corner café)
Consumer
9. Planning an international distribution system
SA producer/ manufacturer/ supplier
SA intermediary:
-International trading
company
-Export merchant
-Agent
- Resident buyers
- Allied manufacturers
- Export management
company
- Export commission
house
Indirect exporting D Direct exporting
Foreign intermediary: Direct investment:
-Merchants
Transfer of -Sales subsidiary
- Agents expertise or ideas: - Manufacturing
- Importers -Licensing subsidiary Strategic alliances
- Wholesaler - Joint ventures
- Franchising - Foreign branch
- Retailer
- Industrial distributor - Contracting subsidiary
Foreign markets and customers
10. The distribution channel for industrial
materials
Trading company User
Wholesaler User
Manufacturer Wholesaler User
Sales company Dealer User
Wholesaler Distributor User
11. Intermediaries involved in the industrial
distribution of food products
Consumables
Agricultural Food service
goods
commodities manufacturers providers
Restaurants
Retail food Consumer
chains
Supermarkets
Food Wholesale/
Processors
producers Distributors
12. The flow of industrial products in the
distribution of food products
Chemicals/ Packaging
Farmers
materials
Ingredient processers
Food and packaged
Grocery wholesaler goods processers
Food service distributor
Supermarket
Take-away
Restaurant
outlet
Eat food at home
Eat food @
Take-
restaurant or
food outlet away
13. The typical distribution channel
Choice depends on
target market,
marketing
objectives and
the nature of the
product
16. The service act
Nature of the product People Things
Tangible actions Directed at the body Goods and physical
possessions
Intangible actions Directed at the mind Intangible assets
17. The service act
Nature of the product People Things
Tangible actions Directed at the body Goods and physical
possessions
Intangible actions Directed at the mind Intangible assets
18. The service act
Nature of the product People Things
Tangible actions Directed at the body Goods and physical
possessions
Intangible actions Directed at the mind Intangible assets
19. The service act
Nature of the product People Things
Tangible actions Directed at the body Goods and physical
possessions
Intangible actions Directed at the mind Intangible assets
20. The service act
Nature of the product People Things
Tangible actions Directed at the body Goods and physical
possessions
Intangible actions Directed at the mind Intangible assets
21. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
22. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
23. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
24.
25.
26.
27.
28.
29. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
30. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to C
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
31. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
32. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
33. Method of service delivery
Availability of service outlets
Nature of interaction Single site Multiple set sites
between C and service
organisation
C goes to service
organisation
Service organisation goes
to c
C and service organisation
transact at arm’s length
i.e. mail or electornic
communication
34. Guidelines for designing service channels
Distribution alternatives and strategies
- At airline’s own outlet
- Telephone directly from airline
- Telephone from travel agent
Airline tickets
- Internet
- Delivery to C
Seek physical
manifestation of
services
- Direct classroom contact
- Televised lecturers
- Web-based training
Education
- Combining contact with a distance-learning
approach
- CDR/ course website
35. Guidelines for designing service channels
Distribution alternatives and strategies
- Travelling bus
- Mail-order books
Library services - Interlibrary loans
- Web-based access to periodicals and journals
Develop
alternative
contacts
- Personal banker coming to your office
Bank - Internet banking
- Purchase cell phone air time @ ATM
36. Guidelines for designing service channels
Distribution alternatives and strategies
- Repair my fridge at my home
Repairs - Handyman services at my home
Develop logistics
channels where
none existed
before
- Collect clothing to be dry-cleaned
- Inthebag.co.za
Collection and
- Buying executive wardrobe and personal items
delivery
from office via telephone, catalogue or selecting
from samples brought to office