Published on March 6, 2014
D E L I V E R I N G S E RV I C E T H RO U G H I NTERMEDIARIES AND E L E C T RO N I C C H A N N E L S THE MEGAMINDS
Md. Shafaeth Zaman Nafiz Imtiaz Noor Md. Asiful Islam Md. Ashiqul Islam Md. Saidur Rahman Muqtadir Fattah Nayeb Aniqa Tahsin Anchal
LEARNING OBJECTIVES • Identify the primary channels through which services are delivered to end customers. • Provide examples of each of the key service intermediaries. • Discuss the benefits and challenges of each method of service delivery. • Outline the strategies that are used to manage service delivery through intermediaries. THE MEGAMINDS
OUTLINE • Service Distribution • Direct or Company-Owned Channels • Franchising • Agents and Brokers • Electronic Channels • Common Issues Involving Intermediaries • Strategies for Effective Service Delivery Through Intermediaries THE MEGAMINDS
SERVICE DISTRIBUTION 1. Direct Delivery 2. Delivery of Service Through Intermediaries 2.1 Franchising 2.2 Agent and Brokers 2.3 Electronic Channels THE MEGAMINDS
1. DIRECT OR COMPANY-OWNED CHANNELS Apollo Hospital IBM Global Services Jawed Habib THE MEGAMINDS
2. DELIVERY OF SERVICE THROUGH INTERMEDIARIES 2.1 Franchising 2.2 Agent and Brokers 2.3 Electronic Channels THE MEGAMINDS
2.1 F RANCHISING airtel KFC Navana Limited THE MEGAMINDS
TABLE 14.1 B ENEFITS AND C HALLENGES FOR F RANCHISERS OF S ERVICE Benefits: • Leveraged business format for greater expansion and revenues • Consistency in outlets • Knowledge of local markets • Shared financial risk and more working capital Challenges: • • • • Difficulty in maintaining and motivating franchisees Highly publicized disputes and conflict Inconsistent quality Control of customer relationship by intermediary THE MEGAMINDS
TABLE 14.1 (CONTINUED) BENEFITS AND CHALLENGES FOR FRANCHISEES OF SERVICE Benefits: • An established business format • National or regional brand marketing • Minimized risk of starting a business Challenges: • Encroachment • Disappointing profits and revenues • Lack of perceived control over operations • High fees THE MEGAMINDS
AGENTS AND B ROKERS AVIVA Life Insurance American Express Oppenheimer Funds THE MEGAMINDS
TABLE 14.2 BENEFITS AND CHALLENGES IN SERVICES THROUGH AGENTS AND BROKERS Benefits: • Reduced selling and distribution costs • Intermediary’s possession of special skills and knowledge • Wide representation • Knowledge of local markets • Customer choice Challenges: • Loss of control over pricing • Representation of multiple service principals THE MEGAMINDS
E LECTRONIC C HANNELS Mobile Banking Sesame Street akhoni.com THE MEGAMINDS
TABLE 14.3 BENEFITS AND CHALLENGES IN DISTRIBUTION OF SERVICES Benefits: Challenges: Consistent delivery for standardized services Low cost Price competition Inability to customize with highly standardized services Customer convenience Wide distribution Lack of consistency due to customer involvement Changes in consumer behavior Customer choice and ability to customize Quick customer feedback Security concerns Competition from widening geographies THE MEGAMINDS
COMMON ISSUES INVOLVING INTERMEDIARIES Conflict over objectives and performance Tension between empowerment and control Difficulty controlling quality and consistency across outlets Channel ambiguity THE MEGAMINDS
STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES • Empowerment Strategies • Control Strategies • Partnering Strategies • Help the intermediary develop customer-oriented service processes • Provide needed support systems • Develop intermediaries to deliver service quality • Change to a cooperative management structure THE MEGAMINDS
STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES • Empowerment Strategies • Control Strategies • Partnering Strategies • Measurement • Review THE MEGAMINDS
STRATEGIES FOR EFFECTIVE SERVICE DELIVERY THROUGH INTERMEDIARIES • Empowerment Strategies • Control Strategies • Partnering Strategies • Alignment of goals • Consultation and cooperation THE MEGAMINDS
THANK YOU! THE END
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