Summary
Summary BEM 120: CHAPTER 8 NOTES
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BEM 120 Chapter 8 notes. These notes were made using the following textbook: Grasping Service Marketing, Jordaan, Y & Samuels, J. 2015 - 3rd edition.
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ACCESSIBILITY STRATEGIES ARE DESIGNED TOCHAPTER 8 MEET THE FOLLOWING OBJECTIVES:
place/distrubtuion • to gain market share for existing service in an
established market
THE NATURE OF DISTRIBUTION • to gain entry to a new market
• to prevent penetration of an established
the availability and accessibility of
Distribution market by competitors
a service to customers.
the service is available to customer
Availability DISTRIBUTION FUNCTION
whenever he or she wants it.
• distribution function attempts to balance
the relative ease with which supply and demand
Accessibility customer can conduct a transaction • balancing act is more complex for services
with the service provider. due to perishability & inseparability of service
offering
DISTRIBUTION OBJECTIVES
1. Coverage DISTRIBUTION PROBLEMS
• exclusive distribution - number of locations • excess of production capacity in one period
will be limited to one or only few in any cannot be transferred to another period when
geographical area there is a shortage
• when convenience in services is deemed • excess demand in one geographical area
important by customers, wider distribution cannot be met by excess supply located in
coverage is desirable another area – advised to match supply and
2. Contact demand for services both temporarily and
spatially
• nature of customer contact varies by industry
and type of organisation
DEMAND SITUATIONS
• high-contact services - more likely to take
place in locations that are geographically • when customers have negative
close to customer feelings towards service, despite
• when service is provided, service provider and fact that they benefit from it
the customer can meet each other in three • e.g. dental services
Negative
different ways: • marketers should try to counter
demand
o customer can go to service provider negative feelings with positive
o service provider can visit customer marketing actions such as
o may be no physical contact at all friendly personnel & smoothing
background music
3. Reservation facilities
• when service is perceived by
• reservation facilities reduces need for
some as having no value
immediate availability of service
• e.g. young people do not see life
4. Actual delivery insurance policies as being of
• delivery of services can be done individually No demand value to them
or collectively • marketers should reformulate
• individual and personal delivery of service service offering & promotional
requires high number of outlets methods to appeal to the
• customised service can only be provided if specific target market
sales area remains local or regional Overfull • when there is excess demand for
demand service
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