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