CHAPTER 8
Place
, 1. The Nature of distribution
Distribution can be defined as the availability an accessibility of a service to customers.
Availability means the service is available to the customer whenever he or she wants it
Accessibility refers to the relative ease with which the customer can conduct a transaction
with the service provider
Planning with the idea of making the service available and accessible to customers, require a
clear set of objectives.
Distribution Objectives
Distribution objectives should indicate the nature of the service delivery process by deciding on
the following:
Coverage
It is important to decide on the desired coverage of the distribution network. If the
service organisation decides on exclusive distribution, the number of locations will be
limited to one or only a few in any geographical area. When convenience in services in
deemed important by customers, wider distribution coverage is desirable.
Contact
The nature of the customer contact varies by industry and type of organisation. When a
service is provided, the service provider and the customer can meet each other in 3
different ways:
- the customer can go to the service provider,
- the service provider can visit the customer,
- or there may be no physical contact at all.
High contact services are more likely to take place in locations that are geographically
close to the customer
- Example, fast-food outlets
Reservation facilitates
When a service provider has reservation facilitates available, it reduces the need for
the immediate availability of the service.
- Home banking via the computer does not require the physical presence of bank
employees during the service encounter.
These technologies offer opportunities to do business even at times outside the
business hours of the service provider.
Actual Delivery
The delivery of some services can be done individually or collectively. An individual and
personal delivery of a service requires a high number of outlets.
A customised service can only be provided if the sales area remains local or regional.
A collective service delivery system, on the other hand, is often characterised by limited
distribution, as in case of tourism services and entertainment, such as musical concerts
and theme parks.
The development of a distribution strategy begins with a clear analysis of an organisation’s
accessibility objectives for a particular service. Accessibility strategies are typically designed to
meet the following objectives:
- To gain market share for an existing service in an established market
Place
, 1. The Nature of distribution
Distribution can be defined as the availability an accessibility of a service to customers.
Availability means the service is available to the customer whenever he or she wants it
Accessibility refers to the relative ease with which the customer can conduct a transaction
with the service provider
Planning with the idea of making the service available and accessible to customers, require a
clear set of objectives.
Distribution Objectives
Distribution objectives should indicate the nature of the service delivery process by deciding on
the following:
Coverage
It is important to decide on the desired coverage of the distribution network. If the
service organisation decides on exclusive distribution, the number of locations will be
limited to one or only a few in any geographical area. When convenience in services in
deemed important by customers, wider distribution coverage is desirable.
Contact
The nature of the customer contact varies by industry and type of organisation. When a
service is provided, the service provider and the customer can meet each other in 3
different ways:
- the customer can go to the service provider,
- the service provider can visit the customer,
- or there may be no physical contact at all.
High contact services are more likely to take place in locations that are geographically
close to the customer
- Example, fast-food outlets
Reservation facilitates
When a service provider has reservation facilitates available, it reduces the need for
the immediate availability of the service.
- Home banking via the computer does not require the physical presence of bank
employees during the service encounter.
These technologies offer opportunities to do business even at times outside the
business hours of the service provider.
Actual Delivery
The delivery of some services can be done individually or collectively. An individual and
personal delivery of a service requires a high number of outlets.
A customised service can only be provided if the sales area remains local or regional.
A collective service delivery system, on the other hand, is often characterised by limited
distribution, as in case of tourism services and entertainment, such as musical concerts
and theme parks.
The development of a distribution strategy begins with a clear analysis of an organisation’s
accessibility objectives for a particular service. Accessibility strategies are typically designed to
meet the following objectives:
- To gain market share for an existing service in an established market
