Distributing Services Through Physical And Electronic Channels

1. Distributing Services Through Physical And Electronic Channels 0253203 杜佳倩 指導老師:任維廉 教授

2. Self-Introduction • Chia-Chien Tu(Joyce) • National Chiao Tung UniversityBachelor of Business Administration in Transportation and Technology • Young Entrepreneurs of the Future : Member(TW) • Innovatech: Assistant engineer(TW) • High school cram school -Teacher (TW) • Now->National Chiao Tung University Studying in Master, Logistics and Transportation management

3. Learning Objectives • Examine the role that distribution plays in services • Determine challenges faced by people-processing, possession-processing, and information based services • Implications of delivery through physical and electronic channels • Understand the role of intermediaries • Determine the drivers of globalization of services

4. Agenda • Distribution in a Services Context • Determining Type of Contact: Options for Service Delivery • Place and Time Decisions • Delivering Services in Cyberspace • Role of Intermediaries -Franchising (6)Challenge of Distribution in Large Domestic Markets (7)Distributing Services Internationally

5. (1)Distribution in a Services Context

6. (1)Where. (2)When. (3)How • The three interrelated elements of distribution are: • Information and promotion flow: to get the customer to buy the service • Negotiation flow: reaching an agreement on service features and configuration • Product flow

7. Core Service product Information Payment Consultation Billing Order-taking Exceptions Hospitality Safekeeping

8. (2)Determining Type of Contact: Options for Service Delivery

9. Type of Interaction between Customer and Service Organization Single Site Multiple Sites Theatre Barbershop Bus service Fast-food chain Customer goes to service organization House painting Mobile car wash Mail delivery Service organization comes to customer Credit card company Local TV station Broadcast network Telephone company Customer and service organization transact remotely (mail or electronic communications)

10. Preference • Use of different channels to deliver the same service • For complex and high-perceived risk services, people rely on personal channels • Individuals with greater confidence and knowledge about a service/channel use impersonal and self-service channels • Customers with social motives use personal channels • Convenience is a key driver of channel choice

11. (3)Place and Time Decisions

12. Where?

13. When? • Tradition: • Schedules were restricted • Service availability limited to daytime, 40-50 hours a week • Today • For flexible, responsive service operations: 24/7 service, 24 hours a day, 7 days a week, all around the world

14. (4)Delivering Services in Cyberspace

15. Technological Innovations (1)Development of “smart” mobile telephones and PDAs, and presence of Wi-Fi (2)Voice-recognition technology (3)Websites (4)Smart cards

16. Factors that encourage you to use virtual stores (1)Convenience (2)Ease of search (3)Broader selection (4)Potential for better prices (5)24-hour service with prompt delivery

17. Recent Developments link Websites, customer management (CRM) systems, and mobile telephony • Integrating mobile devices into the service delivery infrastructure can be used as means to: (1)Access services (2)Alert customers to opportunities/problems (3)Update information in real time

19. (5)Role of Intermediaries

20. As created by originating firm As enhanced by distributor As experienced by customer + = Core Core Core product Supplementary services Total experience and benefits • Challenges for original supplier • Act as guardian of overall process • Ensure that each element offered by intermediaries fits overall service concept

21. Franchising • Popular way to expand delivery of effective service concept • Study shows significant attrition rate among franchisors in the early years of a new franchise system • One-third of all systems fail within first 4 years • Three-fourths of all franchisors cease to exist after 12 years

22. Some loss of control over delivery system and, thereby, over how customers experience actual service • Effective quality control is important yet difficult • Conflict between franchisees may arise especially as they gain experience • Alternative: license another supplier to act on the original supplier’s behalf to deliver core product

23. (6)Challenge of Distribution in Large Domestic Markets

24. Marketing services (i.e., physical logistics) face challenges due to: • Distances involved • Existence of multiple time zones • Multiculturalism (especially, immigrants and indigenous people) • Differences in laws and tax rates • Large U.S. companies counter this by: • Targeting specific market segments • Seeking out narrow market niches

25. (7)Distributing Services Internationally

26. People processing services People processing services require direct contact with customers (1)Export service concept Acting alone or in partnership with local suppliers (2)Importcustomers Inviting customers from overseas to firm’s home country (3)Transport customers to new locations Passenger transportation (air, sea, rail, road)

27. Possession processing involves services to customer’s physical possessions • Information-based services include mental processing services and information processing services (1)Export the service to a local service factory (2)Import customers (3)Export the information via telecom

28. Passage of free-trade legislation is important facilitator of transnational operations • Despite efforts of WTO and GATT, operating in international markets still difficult

29. Transnational strategy involves integration of strategy formulation and its implementation across all countries in which company elects to do business • Market Drivers • Common customer needs across countries • Corporate customers seek to standardize and simplify suppliers used in different countries

30. Government Drivers • Favorable trade policies, compatible technical standards, common marketing regulations • Competition Drivers • Competitors from overseas; interdependence of countries • Firms may be obliged to follow competitors into new markets to protect own positions elsewhere

31. Technology Drivers • Advances in information technology • Cost Drivers • Economies of scale • Lower operating costs

34. Conclusion • Distribution relates to both core and supplementary services and embraces three interrelated elements • Channel options include: (1)Customers visit the service site (2)Service providers go to their customers (3)Service transaction is conducted remotely • Place and time decisions include where services should be delivered, when it should be delivered

35. Conclusion • Delivery in cyberspace is facilitated by technology; e-commerce allows 24-hour delivery, saving time and effort • Intermediaries play roles in distributing services • Service processes affect international market entry via the drivers: Market ,Competition ,Technology ,Cost ,Government

36. Thank you for your listening 